RUAG International is back in the profit zone. The new "Beyond Gravity" brand and space incubator sharpen their focus on the space business.

In 2021, all four RUAG International business units saw successful development and were in the black. In 2021, RUAG Space, now Beyond Gravity, not only collaborated on the prestigious James Webb Space Telescope but also concluded a major contract with a satellite constellation company. Agreements were also reached on the continuation and expansion of long-standing partnerships with key customers like the United Launch Alliance (ULA) or Arianespace.

RUAG Aerostructures extended its contract with Airbus, signed additional supply contracts with Pilatus Flugzeugwerke and completed the construction of an independent production plant with all the necessary certifications in Eger (Hungary).

In a very positive market environment, Ammotec once again managed to grow significantly faster than the rest of the US market. Norma is now one of the most important ammunition brands on the U.S. market. In the Armed Forces & Law Enforcement unit, the market showed cautiously stable development due to the different COVID restrictions around the world.

As it did in the previous year, RUAG MRO International pursued its goal of gradually divesting all units and finding new owners. The remaining activities saw varying levels of success. The simulation and training unit achieved key project milestones in two major projects for the French armed forces. Military Aviation, on the other hand, suffered from the long lockdown in Australia.

Divestments

The technology group achieved major progress with regard to its divestment activities: At the Oberpfaffenhofen site, all repairs and operations for business aircraft and military helicopters as well as the production of the Dornier 228, including all 420 employees, were taken over by General Atomics Europe in February 2021. Furthermore, RUAG International entered into exclusive negotiations with Thales Group concerning the sale of all business activities in the simulation and training unit (RUAG S&T). The contract was signed at the end of January 2022. Closing is expected in the first half of 2022. Thales intends to take over all business activities and the around 500 employees of RUAG S&T. The sale of the RUAG Australia business unit continues to take shape and should be completed in 2022. The divestment activities at RUAG Ammotec are also making good progress. A contractual agreement (signing) was reached with Beretta Holding as of 09.03.2022. Beretta Holding intends to take over all activities as well as the 2,700 employees. The transfer of ownership (closing) is expected by the end of 2022 – subject to regulatory approvals.

Outlook

One of the Group's major focuses continues to be the ongoing divestments. As André Wall summarized it: "We are confident that we will continue to successfully transition from a state-affiliated group to a globally competitive company with a strong customer focus." Due to the planned divestments, it is to be expected that the key figures for the whole Group will change significantly over the coming year. The Group continues to expect a pleasing business performance and positive operating results (EBIT).

RUAG Space has been operating on the market as Beyond Gravity since 15 March 2022 and will also legally change names as of 1 May 2022. The new name and brand identity are intended to sharpen the focus outward, position the space unit prominently on the markets, which are profoundly changing, and make its comprehensive range of services even more well-known to customers. Beyond Gravity, which has around 1,600 employees, will position itself even more consistently as a global player on the international aerospace market.

Foundation of "Launchpad" space incubator

As part of its transition from RUAG Space to Beyond Gravity, the space supplier will launch a space incubator in the summer. It will allow promising ideas and concepts to be identified at an early stage as well as accelerate them. Several times a year, we will look at projects together with selected start-ups and evaluate their development potential and investment opportunities. The program offers young companies exclusive contacts in the international space industry, access to highly specialized engineers, exclusive technologies and a wide variety of means of production. The space incubator, which will go by the name "Launchpad" will initially set up camp in Zürich-Seebach. André Wall's explanation: "I am extremely excited to shape the future of space travel together with selected start-ups."