Press Release

Issued by Helicopter Service Company.

May 22, 2015

As part of the VII International helicopter industry exhibition HeliRussia 2015, Helicopter Service Company, a Russian Helicopters company, part of State Corporation Rostec, and consulting firm Strategy Partners Group have signed an agreement on the provision of consulting services in developing an aftersale service and maintenance strategy for Russian-made helicopters through to 2030 (Aftersale service 2030). Work to develop this strategy will begin immediately.

"Russian Helicopters needs to develop its aftersale service provision for Russian-made helicopters, ensuring it meets the highest standards,' Russian Helicopters ceo Alexander Mikheev said. "One of the goals of this work is to increase the proportion of overall revenue Russian Helicopters derives from aftersale service to 35% by 2030. We working to ensure that helicopters we make enjoy high quality maintenance services world over. This is a vitally important task, currently there are over 8,500 Russian and Soviet made helicopters in operation across the globe, and that fleet is only going to continue to grow."

"Developing the Aftersale service 2030 strategy is a complex and ambitious task. It requires close cooperation between all Russian Helicopters' companies and aircraft repair enterprises, of which there are currently six," said Helicopter Service Company's managing director Dmitry Borisenko. "In working towards this goal we will need to apply global best practice, and that is why our tender was won by the seasoned and creative consulting company Strategy Partners Group, which has extensive experience providing consulting services to major businesses, and has an excellent business reputation."

"Russian aviation companies have always been able to develop and produce products that are, in engineering terms, highly competitive. But today clients are not only interested in the products; they look at the full life-cycle," Strategy Partners Group associate Mikhail Grigoriev said. "Underdeveloped aftersale service systems are an Achilles heel in Russia's aircraft and helicopter construction industries. We are glad that Russian Helicopters is focusing on this issue, and is a pioneer in this sector of the Russian economy in developing this system. We are confident that, thanks to our experience, we will be able to aid this process."

Given the complexity of the work ahead, the tight deadlines for its completion (strategy development is to be completed in August) and the need for external review, Russian Helicopters has decided to involve a consortium of two leading consulting companies, each of which is a leader in its area. The consortium is headed by leading Russian strategic consultants Strategy Partners Group, and the external review will be carried out by leading global strategic consulting firm McKinsey & Company. McKinsey & Company is a global management consultant firm specialising in strategic consulting that serves leading government institutions and global companies.

Helicopter Service Company (HSC) was founded in 2006 with a goal of setting up an international system of support for Russian-made helicopters that are currently in operation, which today number over 8,500 units in more than 100 countries across the world. It is part of Russian Helicopters.

Strategy Partners Group is a Russian strategic consultant, which has been in existence since 1994 and is part of Sberbank Russia. It collaborates with clients in implementing change, helping them leverage their intellectual, material and financial resources in order to ensure leadership and sustainable growth in competitive markets.