With an EBIT of over six percent, an increase in net sales to CHF 825 million and a noticeable stabilization of liquidity, RUAG’s key performance indicators trended positively. All business areas and main subsidiaries met or exceeded their operating targets. This development was largely influenced by the start of the project for replacing the integrated military communication system (ERSA IMFS), as well as growth in the “Protection” business area. The sale of the Leopard 1 tanks from the inventory held in Italy contributed to financial success. The completion of this chapter represents the next step towards an unencumbered future.
A decisive milestone for the future was achieved with the “RIGI” project. RUAG is completing final assembly and testing of four F-35 fighter jets for the Swiss Armed Forces. The Federal Department of Defence, Civil Protection and Sport (DDPS) supports the project and enables RUAG to develop into a European center for military aviation.
Visible progress
RUAG is implementing the recommendations of the Swiss Federal Audit Office (SFAO) consistently, ordering effective measures where necessary. In the reporting year, the company implemented a new organizational structure, initiated an audit of compliance processes by external experts and developed the company culture with targeted initiatives, among other things. In addition, the renewal of the Board of Directors helped stabilize the senior leadership and enables ongoing change.
The DDPS expressly highlights the progress achieved by RUAG – in particular concerning the establishment of viable tools and structures in compliance, adherence to compliance standards and transparent communication.
The cultural transformation is not yet complete: RUAG aims to address past shortcomings comprehensively and to professionalize processes and structures. The conversion of RUAG into a special-purpose public law corporation intended by the Federal Council will also improve transparency, control and management.
Strengthening of trust-based partnership
The provision of services for the Swiss Armed Forces remains RUAG’s number one priority. To improve the services over the long term, specific measures were taken in the reporting year. Among other things, the company established a task force with the mission to optimize customer satisfaction as well as a strategy board with central representatives from the DDPS, the Swiss Armed Forces, armasuisse and RUAG. RUAG is making every effort to foster trust-based collaboration with structural, organizational and cultural changes. This trust is essential for RUAG to fulfill its duties as a key player within the national security architecture.