Moscow, Russia – April 24, 2011 – The NIS-M2M Group of companies (federal navigation service provider OJSC NIS and M2M Telematics Group of companies), a global leader in transportation navigation and information services, today announces its consolidated financial results for the full year ended December 31, 2011 in accordance with US GAAP .
FULL YEAR FINANCIAL HIGHLIGHTS
Consolidated revenues up significantly by 118.3% year-on-year to RUB 4,458 million
OIBDAup 76.8% year-on-year to RUB 246 million
Net income of RUB 37 million, down 38.6% year-on-year
FULL YEAR OPERATING HIGHLIGHTS
By the end of December 2011, NIS-M2M, with its regional partners, had equipped 150,000 transport vehicles, opened 5,000 dispatch centres and deployed navigation and information systems in 4,000 companies, including 2,500 commercial companies.
Some elements of the intelligent transport systems were deployed in 52 regions and 102 cities of Russia. Passenger transport dispatch systems were deployed in 100 cities.
Major GLONASS deployment projects implemented in 2011 included: the transportation facilities of the Ministry of Internal Affairs and the Ministry of the Russian Federation for Civil Defence, Emergency Situations and the Rectification of the Consequences of Natural Disasters (over 12,000 vehicles); land passenger transportation facilities in Moscow (more than 2,200 vehicles); transportation facilities of the 2014 Olympics Games Sochi Logistics and Transportation Centre (over 2,500 vehicles); and Transneft’s transportation facilities (approximately 6,700 vehicles).
Prototypes of the ERA-GLONASS Emergency Response System were developed in the Moscow, Leningrad and Kursk regions and were tested with regional emergency services.
During the reporting year, M2M Telematics developed 15 new types of GLONASS/GPS automatic vehicle tracking terminals, four software products and a production sample of the GeoS-3 navigation receiver.
A total of 500,000 navigation devices were produced (navigation systems, chip sets, navigation and communication equipment), of which 300,000 were sold. 52,000 units of GLONASS navigation and communication equipment were produced and sold under the M2M Telematics brand.
Approximately 100,000 Shturmann navigators were sold and two new connect navigator models: Shturmann Link 500SL and 501 MTS navigator, were launched.
Alexander Gurko, Chief Executive Officer of NIS GLONASS, commented:
“NIS-M2M Group of companies maintained its leading position in the transportation telematics and satelite navigation market in 2011, due to its strong financial and operating growth.
Our rapid growth resulted from large-scale GLONASS deployment projects in commercial and public sectors. Such projects included the creation of ERA-GLONASS, the establishment of an integrated automated passenger transportation dispatch centre and the provision of land passenger transportation safety solutions in Moscow as part of the creation of an Intelligent Transportation System in the city, the development of departamental (the Ministry of Internal Affairs of the RF, the Ministry of the RF for Civil Defence, Emergency Situations and the Rectification of the Consequences of Natural Disasters, the Federal Agency for Transport Supervision (Rostransnadzor) and others) and major industrial navigation and information systems (OJSC Transneft, OJSC Bashkirnefteproduct, FSUE Russian Post and others). In 2011, we saw a significant increase in the scope of deployment of GLONASS technology across Russia.
We are confident that our regional development, the creation of new products for corporate clients and, above all, the launch of our services in the mass market, will provide us with significant growth across all our financial indicators in 2012 and beyond. This will also enable us to strengthen our leading positions in Russia and to expand our business successfully into other countries.”