Nicolas Perrin will pass his office on to new hands

Under Nicolas Perrin's leadership, RUAG MRO Holding Ltd has undergone significant entrepreneurial and cultural development since its foundation in 2020. A large number of complex legacy issues have been successfully eliminated and governance, risk management and the compliance system have been significantly strengthened. Furthermore, a corporate strategy was developed and processes were harmonized across the company and mapped in SAP S/4 HANA at the beginning of 2024. This has strengthened the internal control system for the future.

Legacy assets taken over

The Leopard 1 business was taken over by RUAG MRO Holding Ltd as a legacy asset. This is reflected in the fact that significant activities took place between 2015 and 2019, i.e. before the unbundling of the former RUAG Group. The findings from the SFAO report published today must therefore be assessed in a temporal context.

However, the German armaments company Rheinmetall's intention to purchase the Leopard 1 tanks falls into the period after the demerger. This has given the transaction an unforeseen scope that will affect RUAG's further development. Nicolas Perrin's decision to hand over his office to new hands ensures that RUAG can continue to pursue its chosen, sustainable direction without restriction.

Key temporal context

The final report of the Swiss Federal Audit Office sheds light on the events of the last eight years. RUAG attaches great importance to viewing and specifying individual assessments in a chronological context. For example, the purchase and management of the Leopard 1 tanks and the establishment and associated business relationships of RUAG GmbH in Kassel took place between 2015 and 2019. Responsibility for this lay with the former RUAG Holding Ltd. With the demerger in 2020, the organizational unit concerned, and in particular RUAG GmbH, was transferred to today's RUAG MRO Holding Ltd.

Further investigation

In order to take any further measures, the results of the ongoing investigation must also be awaited. RUAG commissioned this from the law firm Niederer Kraft Frey.

RUAG supports the SFAO's investigation into the Leopard 1 tank. It is in its interest to ascertain the relevant facts and rectify weaknesses in the areas concerned.

The years 2020 and 2021 were characterized by the unbundling process. This was intensive for the newly founded RUAG MRO Holding Ltd and set the priorities. At the same time, the company had to establish key management structures and functions. These included governance, risk management and the compliance system, which have since been further developed and externally reviewed.

Creating transparency

The SFAO report highlights certain deficiencies in the processes in one business unit of the former RUAG Defence division. The current RUAG MRO Holding Ltd is making every effort to remedy any weaknesses in the compliance system and any remaining deficiencies in processes.

It is important to RUAG MRO Holding Ltd to create transparency about its history and previous actions. In August 2023, the company therefore commissioned an investigation by the law firm Niederer Kraft Frey. This includes a forensic part and will also assess cultural issues. The results will complement the findings of the SFAO report and enable further measures to be taken.