14) The entry of a strategic partner by a long-term lease of property into two defence industry joint stock companies managed by the MoD and the merger of these companies into the Aircraft Repair Company Trenčín JSC advanced its economic stability, while other measures supported the innovation of its production program. By taking over the management of the state-owned DMD GROUP JSC, the MoD created conditions necessary for the development of its military equipment production and maintenance, especially of artillery platforms and those necessary for enhancing the quality of state property management in this regard. Merging three joint stock companies, managed by the MoD, that provided recreational and health services, into one – HOREZZA JSC, and streamlining its structure enhanced its economic performance and made investment into the quality of provided services possible. 1.5 Long-Term Projections of Armed Forces Development (Capability Development) 15) Measures of the White Paper on Defence of the Slovak Republic (2013) planned for the end of 2015 were taken according to available resources. The spectrum of AF SR capabilities was maintained, flat reductions in the number of professional soldiers were stayed and inexpensive organisational changes were carried out in the AF SR structures along with the strengthening of combat elements to the prejudice of command and support elements. The optimisation of logistic functionality was not completed in a comprehensive manner. The intent in the area of reviewing military doctrines, including the revision the AF SR Doctrine (C), remains unachieved. 16) The enhancement of the intensity of AF SR training was begun, including live fire exercises and exercises with allied forces focusing, especially in the Land Forces, on defending the Slovak Republic. Joint preparation and involvement of the AF SR in exercises with key elements of the Integrated Rescue System was intensified. AF SR training remained significantly curtailed, however. 17) The drop in the manning levels of AF SR units has been halted (in 2015 manning was at circa 83.5%) by increasing the number of professional soldiers resulting from higher recruitment and lower rates of leaving the service, despite an increase in the AF SR nominal number strength in connection with creating units in line with the AF SR model (for example a motorised battalion, an Intelligence, Surveillance, Target Acquisition and Reconnaissance battalion - ISTAR). Shortfalls in specialised positions and an increase in the average age of professional soldiers persist. OF THE SLOVAK REPUBLIC 23

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