Vyrocni zprava 2016 EN - pbsvb. roční zprávy/Vyrocni_zprava... · PDF filesuccessful for our company PBS Velká Bíteš. We ... concentrated its 3-hall...

ANNUAL REPORT

2016

1

LIST OF CONTENTS

Introduction by the Chief Executive Offi cer 2

Company profi le 4

Shareholder structure 6

Production programme 8

Quality concept 12

Employee data 14

Investment and European projects 16

Economic and fi nancial development 18

Balance Sheet, Profi t and Loss statement, Auditor‘s Report 21

Awards received in 2016 22

2

Dear ladies and gentlemen,

Let me assess our past year 2016, which was quite successful for our company PBS Velká Bíteš. We have achieved the historically second highest profi t and third highest sales. We have gained new impor-tant markets like, for example, Vietnam, Turkey and multiple new customers from our markets in Europe, Asia, and North or South America. For the fi rst time we sold more than 100 TJ100 jet engines for UAVs. We exceeded the 100-unit limit of sold Safír 5L starting systems for trainer aircraft and the 800-unit limit of sold auxiliary Safír 5K/G MI power units for helicopters.

We have successfully initiated the sales of our new TJ40 jet engine for UAVs, new types of turbine radial and axial wheels for turbochargers, and fi nished turbine blades, including combustion turbines surface fi nishing.

We have developed new products – the TJ80 jet engine for UAVs, starter-generator for airplanes and helicopters, and turbine wheels for race cars, inclu-ding Formula 1. We have invested a total of 70 million CZK into new machinery and technologies and 100 million CZK into our technical development.

Last year, our company management changed sig-nifi cantly. A new director of the Precision Casting Division was appointed together with a new direc-tor of the Industry Division. The Industry Division concentrated its 3-hall machine shop into one hall to improve its management and increase work pro-ductivity. The division earned its critical AS 9100 certifi cation as well.

In 2016, the governor of the Highlands Region pre-sented us with the “Socially Responsible Firm” award.

3

Another important success achieved by our compa-ny in the past year was our position among the best Czech exporters in the HSBC International Business Awards Contest thanks to our “Penetrating the Latin American Market with Decanter Centrifuges“ project.Our critical task for 2017 is to continue in our company‘s growth in terms of our economic results. Our ongoing technical-business projects are to reach serial production. They include, for example, the na-val variant of our APU Safi r 5L, TJ80 jet engines for UAVs, turbine blades, including fi nishing and coating for industrial combustion turbines, axial turbine whe-els for both aircraft engines and turbochargers, and the new DO520 decanter centrifuge.

Dear ladies and gentlemen, let me very sincerely thank all those who actively contributed to our successful year 2016.

Ing. Milan MacholánChief Executive Offi cer and Chairman

of the Board of Directors

INTRODUCTION BY THE CHIEF EXECUTIVE OFFICER

4

První brněnská strojírna Velká Bíteš, a. s. (PBS Velká Bíteš) does business in precise engineering. PBS Velká Bíteš primarily makes turbine high-speed machinery for aviation. We are a comprehensive engineering manufacturer that uses its own production facilities to make precision castings, provides complete hi-tech metal machining, galvanic coating, and subsequent fi nished product assembly. Our customers appreci-ate our high technical level, reliability, and quality of our products and services. PBS Velká Bíteš is a member of the PBS GROUP fi nancial group.

The history of PBS Velká Bíteš started in 1950 when its very fi rst production hall was built together with its supporting facilities for a total of 200 people. This was a follow-up of PBS founded already in 1814. In 1951, the plant became an organizational unit of the PBS Brno state enterprise. It developed dynamically thanks to its technically sophisticated production programme. Its key products included aircraft equipment and devices and precision casting products.

COMPANY PROFILE

SINCE 1814

5

BASIC COMPANY DATA

Registration number 00176109

Tax ID No. CZ00176109

Chief Executive Offi cer Ing. Milan Macholan

Contact address Vlkovská 279, 595 01 Velká Bíteš, Czech Republic

Phone number +420 566 822 111

Fax +420 566 822 135

E-mail [email protected]

Website www.pbsvb.com

Registered capital 460,540 thousand CZK

Number of employees 735

Member of group PBS GROUP, a.s.

MAIN OBJECTIVES

• Become a sought-after supplier of reliable solutions to the aerospace industry.

• To strengthen and expand our position on the key markets in Europe, Asia, and America.

• To be globally competitive.

• To strengthen our role as the supplier of the network of renowned world fi nalists.

• To complete our programme of technical development of high technical level products

and technologies.

• To maintain and strengthen our company’s fi nancial stability.

• To become a company in our region whose employees work with pride.

6

As of 31 Dec. 2016, the 100% shareholder of PBS Velká Bíteš is PBS GROUP, a.s.

STATUTORY BODIES

SHAREHOLDER STRUCTURE

Ing. Milan Macholán Board Chairman

Ing. Martin Uhlíř Board Vice-Chairman

Ing. Tomáš Koutský Board Member

BOARD OF DIRECTORS

JUDr. Jaroslava Šandová Chairwoman of the Supervisory Board

Mgr. Alexandr Borecký Member of the Supervisory Board

Josef Šrámek Member of the Supervisory Board

SUPERVISORY BOARD

CHIEF EXECUTIVE OFFICER

Ing. Milan Macholán

DIRECTOR OF FINANCE

Ing. Martin Uhlíř

QUALITY MANAGEMENT

Ing. Luděk Švenda

7

COMPANY ORGANIZATIONAL STRUCTURE

Ing. Milan Macholán Chief Executive Offi cer

Ing. Martin Uhlíř Director of Finance

Ing. Roman Kolka Aerospace Technology Division Director

Ing. Petr Ňuksa Precision Casting Division Director

Ing. Drahomír Jeleček Industry Division Director

Ing. Bronislav Stiskálek Central Services Division Director

Ing. Luděk Švenda Quality Manager

MANAGEMENT OF PBS VELKÁ BÍTEŠ

PRECISION CASTING DIVISION DIRECTOR

Ing. Petr ŇuksaDirector

AEROSPACE TECHNOLOGY DIVISION DIRECTOR

Ing. Roman KolkaDirector ON-THE-JOB TRAINING CENTRE

PBS VELKÁ BÍTEŠ

PBS ENERGO, a.s.

INDUSTRY DIVISION DIRECTOR

Ing. Drahomír JelečekDirector

CENTRAL SERVICES DIVISION DIRECTOR

Ing. Bronislav StiskálekDirector

8

AEROSPACE TECHNOLOGY DIVISION PRECISION CASTING DIVISION

• Jet engines with thrusts of 20 to 130 daN, turbo- prop and turboshaft engines with outputs of up to 200 kW for UAVs, small airplanes, and helicopters

• Small gas turbines (PEJ or APU) used as air generators for starting systems and emergency power sources, and hydraulic systems of air- planes and helicopters with outputs of up to 100 kW

• Air starting turbines of aircraft engines

• Aircraft air-conditioning systems consisting of of a turbo cooling unit, heat exchanger, water separator, pneumatic control components, gear motors, and closing valves • High-speed gearboxes

• Helium expansion turbines, which are used to liquefy helium vapours

• Low-temperature compressors designed for the exhaust of helium vapours from the liquid helium tank

• Low-temperature pumps designed for the supply of liquid helium to cryogenic equipment

• Cooperation production according to customer documentation, machining of wax models, specfi - cally CNC - 5-axis machining, gear grinding thermal processing and soldering in a vacuum, CVD coating

• Projects and development - complex calculations concerning the area of flows, strength, lifetime, and dynamics, and designs of flow parts of turbines and compressors for both internal development projects and external customers, and management of development projects with fi nancial subsidies from the Czech government and the EU

• Precision investment castings of carbon steel, alloy steel, and nickel and cobalt-based super alloys weighing from 0.1 to 44 kg • More than 340 types of castings, both vacuum casting and air casting • Castings: blades and segments of gas turbines (including cooled with a core), spinner disks for the glass industry, turbocharger wheels and turbocharger blades, castings for the aviation industry - axial turbine and distributor wheels of auxiliary power units and aircraft engines, hollow cooled aircraft engine blades, joint replacements for healthcare

• Casting attests at our own laboratory

• Using a 3D printer for wax models to accelerate the verifi cation of castings as part of the Rapid prototyping complete technology, using the Pro-CAST simulation software (casting parameters verifi - cation tool used at the time of casting technology preparation)

• Technology for the removal of ceramic cores in the leaching autoclave to ensure the removal of ceramic cores in casting for demanding applications not only in the power industry

9

PRODUCTION PROGRAMME /SERVICES

INDUSTRY DIVISION CENTRAL SERVICES DIVISION

• Complete engineering production: from the process of reviewing documentation through the purchase of processed materials and their approval, develop- ment of appropriate technologies, including design and production preparation, cutting, machining, fi nishing, assembly of subassemblies and com- ponents, inspection, 3D measurement, packaging and transport to the destination, repairs

• Precision machining: turning, milling, machining centres, balancing, boring, drilling, grinding, welding, electro-spark machining

• Production of decanter centrifuges for dewatering and thickening sludge (for WWTP, industry, agricul- ture), production and rental of mobile decanter centrifuges, service, and repairs

• Surface treatment (plating shop) - anodizing (anodized hard without additional colouring, hard anodized black surface, anodized natural surface in black, anodized natural surface sealed in dichromate, chromelox sealing in dichromate or water), nickel plating, tin plating, zinc plating with blue or yellow chromate, pre-penetration etching, two-step etching and blackening of ceramic cores in potassium hydroxide

• Asset management

• Investment projects

• Purchasing

• Accounting (fi nance)

• Servicing, technical support of production

• Human resources

• Marketing and promotion

• IT, information systems

• Transport and shipping

• Quality and environment management system control, non-destructive product testing – conventional and digital radiography, penetrant, magnetic and visual inspections, metrology

10

On-the-Job Training Centre PBS Velká Bíteš

PBS ENERGO, a. s.Member of PBS GROUP, a.s.

• Practical training for apprentices in the three-year apprenticeship programme Metal Worker 23-56-H/01 and four-year apprenticeship programme Mechanic – Tool Setter 23-45-L/01, Caster

• Participation in student craftsmanship contests

• Sustainability of projects funded through the EU structural funds

• Recruitment of trainees and education of adults

• Steam backpressure turbines with outputs of 0.1 to 30 MW

• Steam condensation turbines with outputs of 1 to 15 MW

• Gas expansion turbines with outputs of 0.2 to 15 MW

• Bio power plants and power and heating units

• Major deliveries of technological blocks of turbo generators, turbo compressors, turbo pumps, and turbo fans

• Repairs of turbine rotors - max. output 200 MW

• Deliveries of spare parts for steam and expansion turbines

• Turbine inspections, repairs, reconstructions, and modernizations

• Nuclear power industry products – special boxes and channels

• Servicing, consulting, and studies in power engineering

• Third party production according to customers‘ documentation

11

PBS Brno, a. s.Member of PBS GROUP, a.s.

• Engineering company specialized in boilers for the power and heating industry

• Industrial boilers: Biomass hot water boilers Biomass fi red boilers Fossil fuel fi red boilers Hot water boilers Sorted communal waste fi red boilers Combustible boilers Oil and gas boilers

• Refurbishment of existing boilers to environmental boilers and boiler servicing

• Boiler servicing

12

The quality policy of PBS Velká Bíteš formulated in its Quality and Environmental Policy primarily focuses on the meeting of our customers’ require-ments while using the implemented and certifi cated systems according to the current AS 9100 and ISO 14001 international standards. The most critical aspect of our implemented quality and environ-mental management system is our focus on the customer, leadership, teamwork, partnership with suppliers, development and engagement of peo-ple, focus on processes, continuous improvement and innovation, measurable results, and corporate responsibility. The growing ability of PBS Velká Bíteš to meet our customers’ requirements, along with positive references, strengthens our market position.

In 2016, our quality management system activities were still focused on the application of the process control principles based on the AS 9100 standard requirements. These activities were primarily fo-

cused on monitoring and measuring the productivity and effectiveness of specifi ed processes. In connection with revised ISO 9001 and AS 9100 norms, emphasis was placed on the implementation of an effective system to manage the risks and the opportunities associated with pre-production stages, especially production technical preparation, design and deve-lopment, and risks associated with the suppliers of both fi nished products and cooperation services.

PBS Velká Bíteš successfully passed all the inspec-tion and re-certification audits completed by ac-credited certification companies, confirming the compliance of its implemented quality management system with the requirements of the AS 9100 and ISO 9001 norms. Thanks to the appropriately set design support system in relation to the meeting of the Part 21 requirements, independent monitoring system and supervision of design work suppliers, PBS Velká Bíteš passed the inspection audits of the

13

QUALITY AND ENVIRONMENTAL POLICY

AS 9100

European Aviation Safety Agency (EASA) and met all the project tasks set for 2016.

The environmental protection area covering all of the company‘s environmental activities is an inte-gral part of its quality policy. The company pays great attention to air and water protection, handling of chemical substances and agents, waste manage-ment, and energy preservation. All of the company‘s activities defined through its environmental goals and programmes were completed. This positively affected the overall environmental indicators, espe-cially the indicators of energy savings and dischar-ged water quality.

We fully demonstrate the meeting of all the environ-mental legal requirements and continuously meet our measures upon any identified changes of legal regulations concerning our activities. In 2016, we

continued in the implementation of the work safe-ty and protection of employee health requirements according to the requirements of the OHSAS 18001 standard. We plan to fully implement this standard by the end of 2017.

ISO 14001

14

EMPLOYEE DATA

The purpose of this concept is to get and retain motivated and well-rewarded employees, manage their perfor-mance, develop their strengths, and provide fi rst-class service for our customers.

In connection with this, the company continuously increases its employees’ expertise through internal and external educational activities. Some of them were funded through European funds. All the employees who participated in some of our 533 training sessions in 2016 are prepared to complete new projects that meet the company’s strategic goals.

In 2016, we fi led a total of 6 applications for employee education subsidies in various fi elds. The total ap-proved subsidy reached 1,449,845 CZK (85% of our training costs), and 105 employees were trained.

The biggest educational activity completed by 45 of our employees across all the production divisions was the CREO design software training (this training was subsi-dized with 663,000 CZK). The other approved applicati-

ons concerned English language training, digital marke-ting, Prince II Foundation project management, and Lab-View and Calypso software training.

Our educational activities were funded through the Operational Programme Employment, as part of Employee Professional Training Programme II No. CZ.03.1.52/0.0/0.0/15_021/0000053.

As of 31 Dec. 2016 the company had 735 employees. Compared to 2015, the number of employees de-creased by a total of 25 employees.

The company has a personnel development policy covering these areas:

1. Right people in right job positions

2. Evaluation, reward, and motivation

3. Education and development

4. Company culture

5. Internal communication

6. Effective processes

Subsidies for Education

15

On-the-Job Training Centre PBS Velká Bíteš completed its partnership project Reg. No. CZ.1.07/1.1.00/44.0003 “Sciences and Technology – Future Challenge” under the Operational Programme Education for Competitiveness, which is focused on the development of cooperation between secondary school students and teachers and primary school pupils in order to make technology and engineering jobs more attractive to primary school pupils.The project ended on 30 June, 2015, and is now in the

project sustainability stage. The grammar school student compulsory education takes place within a scope similar to this education provided during the project, and every school year, there is at least one free-time activity based on the interest of secondary school students and primary school pupils. The partner primary schools can make edu-cational visits to the company‘s production facilities.

Subsidies for the SPV Students Education

In 2016, our employees received benefi ts according to the collective agreement and a comprehensive welfare programme. Our environmental and worksite care, including the care of our employees’ health, social benefi ts, and our support of sports and cultural activities add to our image of a prestigious employer in our region.

Company‘s Welfare Programme – Employee Care

Employee Structure as of 31 Dec. 2015 and as of 31 Dec. 2016

Vocational2015 2016

Number of empl. % Number of empl. %Management 30 3.9 29 3.9Administration 270 35.5 283 38.5Workers 460 60.5 423 57.6Total 760 100 735 100

Educational2015 2016

Number of empl. % Number of empl. %Elementary 20 2.6 20 2.7Vocational training 367 48.3 345 46.7Complete secondary 264 34.7 258 35.0University 109 14.4 112 15.6Total 760 100 735 100

Age2015 2016

Number of empl. % Number of empl. %Up to 30 150 19.7 141 19.131 - 40 146 19.2 143 19.541 - 50 212 27.9 207 28.2Over 50 252 33.2 244 33.2Total 760 100 735 100

16

INVESTMENT AND EUROPEAN PROJECTS

As of July 2016, the ESPOSA project completed its 56 months out of the 56 scheduled months. That was the cut-off date for drawing any funds with the European Commission’s support for any technical activities completed during this project. In connection with the end of these technical activities, on 31 May - 2 June, 2016, there was the “Final review meeting“ in Warsaw. It was a four-day meeting in order to fi nally evaluate the project in presence of the European Committee (EC) representatives - the EC overall evaluation was “Acceptable progress” - i.e. the project completed a majority of its goals with relatively small deviations from the original plan.

Supporting activities for continuous engine development

• The modelling of engine performance characteristics was verifi ed in the GSP program (commercial software - object system modelling, connected to MatlabSimulink),• Alternative design of JETIS and RQL combustion chambers (RQL compared to JETIS features a better chamber material temperature load) but any alternative combustion chamber designs will probably not be applied due to the price and functional limitations (the existing combustion chamber is at least comparable in performance parameters, its cost is preferable due to mastered production),• A simple cooled distributor verifi ed through measuring (blade material temperature decrease by 50-80 °C),• Achieved savings in the machining of titanium compressor wheels (20-30% of machining costs),• Optimisation of casting processes – achieved acquisition of fi ne casting surface macrotexture of runners and distributor wheels made from standard INC713LC and new MAR-M 247materials, obtained new statistical data for the material• Measured the dynamics of the entire engine installation• Designed draft modifi cation of gears (no material impact on gear dynamics confi rmed) and preliminary draft of reducer with output axis over the engine axis

Dual-channel control system

• PBS has collaborated on these activities with the UNIS company. A step was taken to realise a dual-channel version of the control system (CS) for PBS engines – provided preliminary system design draft including preliminary electro control tests. The control system design pricing and certifi cation balance suggested further discussion on the suitability of this solution was advisable, in particular because of the cost of the control system.

During the project activities of PBS, the project covered as follows:

17

Engine tests

• Carried out long-term tests of the TP100 engines in a PBS lab – completed approx. 2,500 hours and confi rmed the requirements for engine repair. Further engine tests were carried out in the CIAM hyperbaric chamber – validated the performance parameters of the engine shaft throughout the operating envelope.

Engine installations

• ILOT / I-31T Manager – thrust version of propeller application, engine installed, flight verifi cation proceeded (about 15 hours)• MM / ORCA - twin-engine push version of propeller application, engine installed, flight measurements proceeded (about 130 hours on two engines)• Winner Helico / B150 – helicopter application, engine delivered, installation delayed (rotor system dynamics) • IRI – helicopter application, engine installed, on-the-ground verifi cation proceeded

18

• In 2016, PBS Velká Bíteš generated a pre-tax economic result of 190,203 thousand CZK.

• The value of assets held by PBS Velká Bíteš as of 31 Dec. 2016, was 1,196,113 thousand CZK.

• The company‘s fi xed assets decreased from 1 Jan. 2016 - 31 Dec. 2016 by 47,395 thousand CZK, i.e. by 9.02%. Long-term tangible assets decreased by 47,851 thousand CZK, i.e. by 10.1%. The last year’s long-term intangible assets increased by 456 thousand CZK, and the long-term fi nancial assets did not change.

• Current assets increased by 48,685 thousand CZK, i.e. by 7.38%. Inventory decreased by 78,938 thousand CZK. Short-term receivables increased by 16,015 thousand CZK. Cash increased by 111,608 thousand CZK.

• In 2016, asset accruals increased by 3,710 thousand CZK.

2016 economic result and expected 2017 results

Year 2016(In thousand CZK)

Year 2017(In thousand CZK)

Total sales 1,203,545 1,353,500

Economic result before tax 190,203 281,041

Value added 599,565 742,066

ECONOMIC AND FINANCIAL DEVELOPMENT

19

• During 2016, own capital increased by 39,266 thousand CZK, i.e. by 5.12%.

• In the area of foreign resources, debts decreased by 22,920 thousand CZK. Reserves decreased by 11,575 thousand CZK. In 2016, foreign resources decreased by a total of 34,495 thousand CZK.

• In 2016, liability accruals increased by 229 thousand CZK.

• In total, the 2016 balance increased by 5,000 thousand CZK, i.e. by 0.42%.

2016 research and development costs and expected 2017 costs

Year 2016(In thousand CZK)

Year 2017(In thousand CZK)

Research and development costs 101,489 113,811

The annual fi nancial statements of PBS Velká Bíteš were verifi ed by an auditor and reviewed by both the company‘s Board of Directors and Board of Trustees.

20

BALANCE SHEET (in thousand CZK) Year 2015 Year 2016

Total assets 1,191,113 1,196,113

Fixed assets 525,518 478,123

Intangible fi xed assets 5,724 6,180

Tangible fi xed assets 473,949 426,098

Financial investments assets 45,845 45,845

Current assets 659,918 708,603

Inventory 381,273 302,335

Long-term receivables 0 0

Short-term receivables 199,958 215,973

Cash 78,687 190,295

Accruals 5,677 9,387

Total liabilities 1,191,113 1,196,113

Equity 766,644 805,910

Registered capital 460,540 460,540

Capital funds 25,286 25,286

Funds from profi t 70,870 79,684

Retained earnings 33,661 81,134

Current accounting period economic result 176,287 159,266

Liabilities 424,294 389,799

Reserves 14,663 3,088

Long-term payables 60,526 58,454

Short-term payables 349,105 328,257

Accruals 175 404

PROFIT AND LOSS STATEMENT (in thousand CZK) Year 2015 Year 2016

Revenues from sales of products, goods and services 1,361,903 1,154,804

Change in inventory of own production - 41,089 76,960

Capitalisation -36,720 -33,911

Performance consumption 787,409 512,190

Labour costs 412,875 373,226

Value adjustments to operating activities 58,968 61,944

Other operating income 66,450 83,886

Other operating costs 28,954 57,723

Operating economic result 217,956 190,558

Income from long-term fi nancial assets 0 3,570

Value adjustments and reserves in the fi nancial area -9,891 161

Interest income and other fi nancial income 11,052 3,365

Interest expenses and other fi nancial expenses 25,772 7,129

Financial economic result -4,829 -355

Economic result before taxation 213,127 190,203

Income tax 36,840 30,937

Economic result after taxation 176,287 159,266

Economic result for accounting period 176,287 159,266

Net turnover for accounting period 1,439,405 1 245,625

21

2222

55th place in the “CZECH TOP 100” competition

1st place in the category of large companies in the contest of the Vysočina Region governor for social responsibility

AWARDS RECEIVED IN 2016

23

The prestigious Czech Stability Award AAA Excellent certifi cation within the Czech Top 100 Companies competition

3rd best exporter in the HSBC International Business Awards competition with the project „Penetrating the Latin American Market with Decanter Centrifuges“ project

24

25

PBS VELKA BITES – MEMBER OF PBS GROUP

PBS Velka Bites, a. s.Vlkovska 279, 595 01 Velka Bites, Czech Republictel.: +420 566 822 111 fax: +420 566 822 135e-mail: [email protected]