SAMI’s Board Discusses Implementation of Companies’ Business Development Plans in Q1 2019

A meeting of the board of State Authority for Military Industry (SAMI) was held on 22 May. The meeting was chaired by Roman Golovchenko, Minister of State Authority for Military Industry. The participants discussed the results of the implementation of business plans by SAMI companies in the first quarter of 2019, as well as the forecast for reaching the planned development targets in the first half of this year.

Before the meeting began, by the decision of the Collective Security Treaty Organisation’s Collective Security Council, Roman Golovchenko awarded Alexander Voitenkov the Medal for Strengthening Collective Security. Alexander Voitenkov is the director of Display Design Office JSC, head of the Belarusian National Part of the Business Council and Deputy Chairman of the Business Council under the CSTO Interstate Commission on Military-Economic Cooperation.

Dmitry Pantus, Deputy Minister of State Authority for Military Industry, elaborated on the results of the implementation of key parameters of business plans by SAMI companies in the first quarter of this year, and focused on the dynamics of the socio-economic development of the industry and the expected trends in the first half of the year.

As of the end of the first quarter of 2019, SAMI companies met the planned development targets.

Speaking about specific indicators, Dmitry Pantus noted that exports of goods and services by SAMI companies in the first quarter were 9.1% higher than the planned target.

According to Pantus, the majority of SAMI companies reached their export targets.

The total volume of industrial production in January–March 2019 exceeded the planned figure by 14.1%.

OKB TSP SPLLC was highly praised for its performance. The company exceeded its Q1 2019 production target by more than two times.

As regards the salary targets stipulated by the business plans, the nominal average salary in SAMI companies in January–March amounted to 1,508.9 Belarusian rubles, which is 5.3 % higher than the planned figure.

The growth rate compared with the same period last year is 112.6%.

Dmitry Pantus stressed that one of the main tasks in 2019 was to eliminate the imbalance between the growth rates of labour productivity and average salary, and to prevent the salary growth that was not accompanied by a corresponding increase in productivity.

Focusing on companies’ financial results, Dmitry Pantus noted an upward trend in return on sales in SAMI industrial companies.

As of the end of the first quarter, the return on sales was 23.6% (the target was 11%); and in the whole, SAMI companies featured the return on sales at 20.1% (the target was 10%).

Net profit received by SAMI companies in January–March 2019 was 2.4 times higher than the planned figure.

“Today, profit is one of the key criteria for assessing the effectiveness of the work of a company’s head. The President also spoke about this when addressing the parliament and the Belarusian people. Obligations relating to profits must be met in full,” Dmitry Pantus said.

In order to improve the companies’ efficiency, SAMI has developed new approaches to the remuneration of directors. This will contribute to better work in achieving the planned development targets.

Investments in January–March 2019 by SAMI companies exceeded the planned figure by 1.8 times.

Speaking about the forecasted results of the first half of 2019, Dmitry Pantus noted that in the first half of 2019 SAMI companies plan to reach development targets stipulated by business plans. And by the end of 2019, it is expected to achieve a positive trend in socio-economic development in comparison with the previous year.

Roman Golovchenko drew attention to reaching the export target, which is the focus of efforts to ensure balanced economic development of State Authority for Military Industry.

According to Golovchenko, the MILEX 2019 exhibition, which was held in May, demonstrated a certain economic success; therefore, one of the main tasks is to monetise the exhibition’s economic results.

Roman Golovchenko emphasised that all business entities are in the same conditions. These conditions are more favourable than last year, since the government ensured economic growth over the past period while maintaining macroeconomic balance.

SFTUE Belvneshpromservice was highly praised for its export performance. The company exceeded the planned export target by 1.7 times and is far ahead of other special exporters.