PRESENTATION
JSC
The factory was established in 1941 on the basis of the Vacuum devices plant, Fryazino,
Moscow region.
Since 1942 the factory started production of electronic generator and amplifier
facilities.
In 1965, the technology of the company was totally redesigned into production of
semiconductor devices and integrated circuits.
Reorientation of production is carried out in 1994 (maintaining the previous
specialization) into the production of electronic and radio-electronic products with a
complete cycle of execution.
The company owns manufacturing techniques (more than 30) of discrete and planar
semiconductor diodes, low-noise FET chips. The production uses technologies such as
nickel and gold plating; deposition of thin (thickness of 5 micrometers) metal films;
spot welding; manufacturing of internal connections using thin (100 microns) aluminum
and gold wires.
According to the program of localization mastered modern models of cash machines
and televisions LED- that meet modern requirements (manufacture of printed circuit
boards, assembly of printed circuit boards, molding housings TV).
In December 1995, the company transformed into a corporation. JSC «FOTON» is a
part of the Joint Stock Company "Uzeltehsanoat."

manufacturing of semiconductors

manufacturing of consumer goods, including
television equipment, cash registers.
These products (more than 30 types) are mainly supplied to the defense enterprises of Russian Federation according to "the Intergovernmental Agreement between the Government of the Repu

Production of semiconductors is one of
the main specializations of JSC
«FOTON».
These products (more than 30 types) are
mainly supplied to the defense enterprises of
Russian Federation according to "the
Intergovernmental Agreement between the
Government of the Republic of Uzbekistan
and the Government of the Russian
Federation in the industrial and scientifictechnical cooperation of industrial
enterprises."
Nowadays, the Intergovernmental Agreement for 2015 was coordinated with the Ministry of
Economy of the Republic of Uzbekistan and submitted to the Ministry of Industry and Trade of
Russian Federation.
The export contracts have been concluded on the basis of 100% consumers requests.
The demand for semiconductor devices manufactured by JSC «FOTON» comes from:
• unique combination of parameters of manufactured semiconductor devices;
• design features that ensure their high resistance to external factors (temperature, vibration,
shock, etc.);
• reliability;
• best price-performance ratio compared with similar products, which are produced by enterprises
in Russia and other countries.
The volume of export supplies of JSC «FOTON» in 2014 amounted to 3.62 million US Dollars.
It is planned to perform the deliveries for the amount of 2.5 million US Dollars in 2015.
Quality Management System for the manufacture of
semiconductor devices of JSC «FOTON» has been
certified in accordance with the International Standards
to ISO 9001: 2008 and registered under number
SVS.01.431.0544.14 on 10.10.2014, valid until 2017.

Quality Management System of production of
consumer goods for JSC «FOTON» is certified in
accordance with international standards ISO 9001:
2008 certified and registered under № Uz. SMT.
04.007.01114 on 15.04.2014, valid until 2017.
















LED TV - PANDA LED Panel 22", 24", 32 ".
Functionality:
- Control the TV from the front panel or the remote control (RC);
- Mute function;
- Standby mode;
- Auto Off timer (standby) after a specified time (sleep timer);
- Automatic, manual and precise adjustment of the three bands;
- Automatically turning off the TV (standby) when no signal ("BLUE SCREEN");
By using the "LED" backlighting - colors display with high brightness and saturation,
making pictures more realistic
EPG - electronic program guide that will help you organize viewing. Its functions
include:
PVR (Personal Video Recorder) - recording of digital TV programs on removable media
Content choice of genres, trends, rating and so on.
Multi-format playback of movies, music, photos and text with USB support.
Built-in tuner DVB-T2 allows you to receive digital video signals without any additional
equipment*.
In Uzbekistan you can easily customize 14 HD quality channels free with this tuner.
Ability to install CAM-module for reception of paid digital television programs.

Modern, compact, self-contained electronic recording
machines.

Fully meet the requirements of the State Tax Committee, are
authorized to be sell and included into the State Register of
CM, permitted for usage in the territory of the Republic of
Uzbekistan.
CM are designed for:
• Registration of cash operations in various trade
and services objects;
• Automate accounting and controlling the
products distribution and fulfillment service
periodic reports;
• collection and storage of financial information
in non-volatile memory and performance of fiscal
reports at the request of the State Tax Committee.
Markets and Marketing
The structure of nomenclature distribution of production
80.00%
60.00%
40.00%
20.00%
0.00%
ППП
Телевизоры
ККМ
Прочие
The diagram shows that the share of semiconductor devices in general nomenclature issue
amounts to 60.0%.
The consumer goods account for 38.1% where: TV - 18.8%; Cash machines - 19.2%.
Comparing to 2013, the growth of nomenclature production in physical measurement is as
follows:
- TV production slowdown to 11.5%;
- production of cash machines growth of 21.1%
- producing semiconductors growth of 35.2%.
Growth in semiconductors export supply (in comparing to 2013) is 25.7%.
THE MAIN TECHNICAL AND ECONOMIC
INDICATORS OF JSC "FOTON"
Parameters
The volume of products in
current prices
Consumer goods including
VAT
Net revenue from sale
Net profit
Net cost of sold products
Fact
2014
Forecast
for 2015
Growth
%
Forecas
t for
2016
mln.
sum.
17172
20200
117,0
23200
115,0
mln.
sum.
7711
11300
146,5
12500
110,6
17114
20200
118,0
23200
115,0
1475
530
35,9
870
164,2
12716
15000
118,0
17200
115,0
Unit
mln.
sum.
mln.
sum.
mln.
sum.
Growth
%
RESULTS OF FINANCIAL AND ECONOMIC ACTIVITY FOR 2014

The following results were achieved as a result of implementation of measures listed
in Business plan of financial-economic activity for 2014 JSC «FOTON»:

1. The growth of commodity output in comparable prices in comparison with 2013
year amounted to 119.8%.

2. Growth of sales volume in 2014 compared to 2013 is 146.6%.

3. The cost share of sales is about 75%.

4. Payment of current payments to the budget and extra-budgetary funds as well
made timely and at the end of 2014 was 2,735,000,000 UZS.

5. Growth of average salary in comparison with 2013 year was 25%.

6. A net profit for 2014 is 1475 mln. sum.
7. In accordance with implementation of the Statement of the Cabinet of Ministers of
Uzbekistan №5 of 23.07.2014 "On additional measures for the production costs and net costs
reduction" and the Order of Association "Uzeltehsanoat" the reduction of the manufactured
products net cost amounted to 6.8%.
8. The new LED TV model, based on a complete set of branded company, put into the
operation, the release of the semiconductor increased, and production of a new model CMC
"Orion-105F".
New equipment:
- Water-ring pump, injection mold for the production of TV sets, contact spot welding
installation and USIIM-3 welding facility;
- New transport units were purchased in order to update the park of vehicles;
- Air-conditioners in production units;
- Computer equipment;
The total amount for repairing works in 2014 was 685.0 million Sum. The total amount of new
equipment was 266 mln. Sum.

semiconductor devices production volumes expansion (IEP) by improving the
manufacturing technology and modernization technology equipment for their
release;

production expansion and TVs new models development with support of
SMART-TV functions

electronic scales production expansion and development of modern models of cash
registers with the support of the software functions.

In the domestic market of the Republic of Uzbekistan are as follows:

• consumer goods produced by JSC «FOTON» (televisions and control cash machines) are focused
to wide and reproducible consumption;

• manufactured products are provided with service and repair works, both during the warranty
period and after its expiry. In connection with it, the company established a service desk, as well as
a contract was concluded with the association "Komkastehservis", which has a network of service
and repair points for maintenance of cash machines in all regions of Uzbekistan.

• All products are regularly tested and the test composition and rules of procedure are governed by
official documents, duly registered in the agency "Uzstandard". These tests and inspections are held
both in the manufacturing of products of JSC «FOTON», and in the accredited laboratories of the
agency "Uzstandard" that allows you to maintain the desired level of quality of ND;

• the company operates and maintains a quality management system that meets the requirements of
ISO 9001: 2008.

On the external (export) market JSC «FOTON» has the following advantages:

• JSC «FOTON» is either the only or the main supplier of number of products in the CIS;

• JSC «FOTON» has advantages over other providers of similar products. An analysis of the price
of products supplied, shows that prices of products of JSC «FOTON» are lower than prices of other
suppliers of electronic products.

• at JSC «FOTON» operates EP Ministry of Defense, and the products manufactured by the
company, are included in the "List of Erie permitted for use in the design, manufacture and
operation of special equipment and machinery." Its deliveries are made in accordance with "the
Intergovernmental Agreement between the Government of the Republic of Uzbekistan and the
Government of the Russian Federation in the industrial and scientific-technical cooperation of
industrial enterprises."

Technical and organizational measures, implemented in 2014 and the results

The following to be considered as the most significant work on the production of
consumer goods, carried out in 2014:

Development of a new model of CMC ("Mercury-185FUz") with expanded functionality,
the production is planned to be started in 2015 year;

development of LED televisions production with screen size of 42 ", the production is
planned to be started in 2015;

These and other works allowed to ensure the electronics and consumer goods production
sustainability in 2014.

Training personnel on JSC «FOTON» carried out in the
following areas:

Training newers as per "mentor - pupil" system.

Retraining, skills upgrading and certification of operating
personnel.

Retraining and advanced training are carried out inside the enterprise and other
organizations on the basis of the concluded contracts (CPC NIISMS, Customs
Institution of Uzbekistan and etc.).

Cooperation with universities, colleges and high schools to guide young experts for
subsequent employment at JSC «FOTON».

Cooperation with research institutions for science and technology through innovative
projects.

The company introduced modern information and communication
Technologies

1. The electronic accounting system "1C-Accounting"

2. Access control electronic system, and time attendance system

3. An internal LAN

4. E-mail "E-hat» and e-documenting «E-hujjat»

5. Web-site of JSC «FOTON» is updated and maintained
20200
20 000,00
16848
17 000,00
14 000,00
11 000,00
13092
10602
8 000,00
5 000,00
2 000,00
2012г
2013г
2014г
2015г
The main products
I
quarter
thous.
pcs.
mln.
UZS
Production volume 2015
II
III
IV quarter
Total
quarter quarter thous. pcs. Annual
thous.
thous. mln. UZS thous. pcs.
pcs.
pcs.
mln. UZS
mln.
mln.
UZS
UZS
Electronic products
Semiconductors
Resumption of instruments
2D213A, 2D212-6, 2P308
Cash machines
"PANDA" TV 32"
680
2275
460
2292
680
1836
180
1464
2000
7867
-
100
250
250
600
4
1012
1,2
978
2,5
973
2,4
1950
2,5
973
2,4
1956
2,5
973
1,2
978
11,5
3931
7,2
5862
1
1600
8,2
7462
340
20200
New kinds of products
"PANDA" TV 42"
TV production, total
Other products (mln Sum)
Total products (mln Sum)
-
-
-
1,2
978
85
2,4
1950
85
2,4
1956
85
1
1600
2,2
2578
85
4350
5400
5100
5350
In accordance with the decree of the President of the Republic of Uzbekistan No.
PP-1961 of 30.04.2013, in order to increase the volume and expanding the range
of high-quality food and non-food products by establishing the new industries,
equipped with modern technologies, taking into the account the most full
saturation of the internal market with domestic competitive Consumer goods,
JSC «FOTON» annexed to this resolution №3 with the projects of TV models
LED (7 thous. pcs.) and cash machines (15 thous. pcs) production. The works on
localization of consumer goods production will be continued in 2015 - new TVs,
upgrading CMC "Mercury 115FUz" and development of "Mercury 185F" model
cash machines production.
Complex measures on reduction of output net cost in 2015 year provides falling in net
costs of production for 10.4% due to:
1. Saving energy:
- Replacement of oil power transformers TM 1000/6 / 0.4 for TM 630/10 / 0.4 kV;
- Replacement of exhausting ventilation capacity of 30 kW for 15 kW;
2. Valuations and reduction the specific norms of raw materials consumption,
optimization of procurement of raw materials and components:
- Saving the expense of replacing silicon EFC 4,5 ᴓ 42,5 mm for the silicon of the same
brand of ᴓ 44mm;
3. Technical modernization and the introduction of resource-saving technologies, the
use of
advanced types of materials:
- An increase of production due to lower rates of silicon KEF4,5 consumption;
- Replacement of the auxiliary compound material KLSE for Pentelast;
- An increase in production of devices by saving auxiliary material Pentelast;
4. Process optimization, reduction of technological losses:
- An increase of suitable crystal on silicon epitaxial structure by usage of new sets of
photomasks.
No Works description
1
2
3
4
5
6
7
Functional Purpose and
objectives
Executi
on time
Completion of the assembly workshops
reconstruction (number 2, 5 and 13)
Provide the required conditions for
semiconductors release
Stepwise replacement (modernization) of
the main and auxiliary equipment in the
shops №№ 2,5,13
Resumption of instruments 2D2992, 2P308
and 2P601
The increase in labor productivity,
quality improving
2015 as
per
schedule
2015
Expansion of the nomenclature
release of products, meeting the
needs of market, the increase of
exports
The transition to 100-mm Al - wire for
Increasing the reliability of the
manufacture of internal outputs of 2D237
devices, increasing the
devices
competitiveness
transition IC production series for 1401
Meeting the needs of the market, an
Requirements COP Climate 7
increase of export sales
Mastering the production of LED TVs with Expansion of the nomenclature
42 'screen
products, needs market demands,
volumes production increase
The development of a new model CMC
Expansion of the nomenclature
"Mercury - 185 FUS"
produced products, needs customers
demands
1 quarter
2015
1 quarter
2015
1 quarter
2015
2 quarter
2015
1 quarter
2015
In accordance with the Statement of the Cabinet of Ministers Uzbekistan №84 from
25.03.2013 the construction of "Uzavtosanoat" complex was carried out on the exterritory of JSC «FOTON». In accordance with the Statement of the Cabinet of the
Republic of Uzbekistan №319 from 5.12.2013 JSC «FOTON» has repaired the front
of the production building, repaired the roof of the main building and constructed a
one-storey building entrance to create a single architectural style with an
administrative building AK "Uzavtosanoat". Renovation and construction funding
was carried out by own means of the enterprise in amount 685.0 million Sums for
the expenses of the means received from the sale of the semiconductor
manufacturing building to "Uzavtosanoat." Repairing works were made inside the
production building in 2015. After the transferring some production facilities from
JC "Algorithm" to JSC «FOTON» in 2015, according to the Decree of the Cabinet
of Ministers Uzbekistan №237 from 19.08.2011, the repairing works of transmitted
areas and construction of fences are planned to be carried out.
Financial Recovery Plan includes measures for reducing the production costs and non-productive
sphere as well, reorganization, conversion and modernization of production taking into account
market conditions and rational reduction of social infrastructure.
N
o.
Measures description
Execution
time
Expected working capital
funds (mln. UZS)
Writing-off and sale of residues of illiquid finished
1. products, which has no demand and transferred into the
category of illiquid
2. Renting the unused equipment
1-4 quarter 50.0
3.
Reduction of products net cost
4. Reduction of unproductive spending
1-4 quarter 4.4%
1-4 quarter In comparable in 10%
Saving energy through:
-Use el/energy at the level of 2014.
5.
- compliance of power mode of the equipment
in electric consumption power in peak hours
Replacing silicon EFC 4,5 ø 42,5 mm for the silicon of
6
the same brand ø 44 mm
The introduction of resource-saving technologies by:
- Increasing the production of devices by reducing
consumption of silicon KEF 4.5;
7 -replacement auxiliary material compound KLSE for
Pentelast material;
-Increase production of devices from savings
1-4 quarter In comparable in 0.3%
1-4 quarter 60.0
1-4 quarter In comparable in 0.2%
1-4 quarter In comparable in 3.3%
mln. sum.
No
1
Description
Products net takings
2014
BusinessExecution
plan
Forecast
for 2015
14900
17114
20200
10430
12716
16174
4
5
The gross financial result
Expenses of the period, including:
distribution costs
administrative expenses
other operating expenses
Other operating income
Other expenses from operations, including:
4470
4786
248
843
3695
800
4398
3212
124
1063
2025
658
4026
3730
114
1273
2343
459
-
-
80
6
7
Total financial result
Other expenses of financial activity
484
1844
756
90
127
147
8
9
Profit before income taxing
Tax on profits
Other taxes and mandatory fees (tax
infrastructure)
Net profit
394
35
1717
114
609
37
29
128
43
330
1475
530,0
- Production net cost of sales;
2
3
10
1. Business plan developed for 2015 aimed at:
- further development and increase the production of competitive export-oriented products e-technology, as well as the
renewal and development of electronic diodes - 2TS114, 2D213A-6 2D2992. Costs of renewal and development of the
production is 70 thousand US dollars;
- further production development of modern, competitive electrical household products for saturation of local market,
development costs will amount 250 thousand US dollars.
2. Business plan developed for 2015 includes:
- The growth of production volume by 20%;
- Getting net profit of not less than 530 mln. Sum.
3. The growth of wages is envisaged not less than 25%.
4. In accordance with the developed measures the reduction of production costs in
2015 planned to be no less than 10.4%, due to:
- Energy savings;
- Regulation and reducing specific consumption rates of raw materials, optimization of procurement of raw materials and
accessories;
- Technical modernization and introduction of resource-saving technologies, usage of new, advanced types of materials;
- Optimization of manufacturing processes, reduce process losses.
5. Monthly monitoring of the status of receivables and payables with the adoption of measures to
elimination.
6. In connection with the restructuring of production, restructuring of the management structure the employment of
young specialists and professional development, training of engineering staff of the enterprise and the creation of new
working places will be welcomed.
7. In accordance with the approved activities for the replacement and modernization of equipment for
the process the replacement the obsolete and modernization of existing equipment for manufacturing
electronic products and consumer goods is planned to be carried out.
Equipment park amounted to 250 thousand US dollars in 2015.
8. In accordance with the approved activities the reconstruction of production premises of JSC «FOTON» will be
continued, moreover in 2015 the planned repairs of production workshop №2 and administrative building №6 at JSC
"Algorithm" premises, as well as the construction of fencing of the area transferred will be carried out.
Parameters
Forecast Growing Forecas Growing
Growing
,%
t
,%
,% to
2014
2016
2017
To 2015 To 2016
Unit
Factual
2014
Forecast
for 2015
Trading products
in current prices
mln. sum
17172
20200
117,6
23200
26700
115,0
115,0
Electronic
equipment products
mln. sum
10481
7867
75,1
8147
8147
103,6
100,0
mln. sum
3186
7462
234,8
8311
9557
111,4
115,0
Cash register
machine
mln. sum
3240
3931
121,3
4217
4217
107,3
100,0
National consumption
Goods (VAT)
mln. sum
7711
11300
146,5
12500
13700
110,6
110,0
Pure revenue from
implementation
mln. sum
17114
20200
118,0
23200
26700
115,0
115,0
mln. sum
1475
530
35,9
875
1210
165,0
138,3
Modern models TV
Net profit
Production Forecast for 2016-2017, provides:
- in view of the increasing demand for electronic equipment the resumption production of competitive exportoriented products and transistors 2P308 and 2P601 is planned for 2016, development costs will be amount to
100 thousand US dollars;
- further development of modern, competitive electrical and household products such as TV sets of new models
from well-known branded companies; modernization and production of new models of cash registers in
accordance with the requirements of STI Uzbekistan, as well as the localization deepening of production of
these kinds of products.
2. Business Plan for 2016-2017 comprises:
- Annual growth of marketable products at least 20%;
- Ensuring the growth of net profit of not less than 20%.
3. It is envisaged an annual growth of wages in comparison not less than 25%.
4. Annual reduction of production net costs by at least 4.0%
5. Monthly monitoring of the status of receivables and payables with measures taken to reduce them.
6. Taking into account the specialization of JSC «FOTON», prospects and forecasts of production volumes of
electronics and consumer electronics, the production in advanced projected volumes is planned to be effected.
Providing the increasing volume of production the acquisition of certain types of equipment is planned to
eliminate bottlenecks. In addition, in 2016-2017 the purchase and modernization of certain types of
technological and auxiliary equipment is planned to improve their performance and achieve a level
corresponding the standards of production.
All planned work aimed to the unconditional fulfillment of the production terms in 2016-2017. It should be
noted that the planned volume of production of consumer goods specified by the size of the investments on the
basis of financial and economic activity of JSC «FOTON».