Message from the Chairman of the Board of Directors

Dear shareholders and colleagues,

The Russian railway passenger service system saw historically unparalleled changes in 2022, necessitating quick decision-making and efficient corporate procedures to adapt to the new circumstances. JSC FPC demonstrated that it is a stable, sustainable and socially responsible company with a lot of potential.

The Company finished the year with a net profit that was 1.7 times greater than the pre-pandemic 2019 figure. ACRA affirmed JSC FPC’s credit quality rating at the high level of AA+(RU), with a stable outlook. This implies that the Company will keep generating profitable operating and financial results.

There has been a sustained positive trend in in terms of passenger traffic volume. In doing so, the Company has passed another test and proved that it is ready for the increased demand and is growing, while keeping travellers’ wishes and needs in mind, and thus guarantees convenient travel and top-notch service at every stop along the way.

Due to air traffic restrictions in some areas of the Russian Federation, the Board of Directors’ primary focus in 2022 was on swift decision-making to ensure the population’s access to transportation options. To this end, the Board of Directors adopted a number of strategically significant decisions, including adjustments to the investment programme, approval of parameters for major investment projects, and approval of a major transaction for the purchase of rolling stock.

For instance, the 2022 investment programme volume (with a total of RUB 40.6 billion) exceeded the same figure for 2021. The bulk of the funds (96.6%) was spent on the purchase of new carriages and the upgrade of rolling stock. The fleet of the Company received 108 advanced double-decker carriages and 325 single-decker carriages. Climate control, air sanitisation, and bio-toilets are all included in the rolling stock’s comfort package. One of the Company’s top priorities continues to be the development of new varieties of rolling stock in partnership with manufacturers.

Last year, new bistro carriages were added to the fleet, offering more room and two seating options for guests to relax comfortably and enjoy their time. There has been a considerable increase in demand for the train meal delivery service and an expansion of the list of trains that have a new catering concept.

Rail tourism is becoming more popular. Since 2020, this transport sector has been expanding rapidly, and about 30 tourist trains, including regional projects, were offered to passengers in the reporting period. In 2023, passengers will have access to even more travel options. Rail cruises offer a distinctive style of travel where a train serves as a mobile hotel, being a full-fledged element of tourist infrastructure.

I am confident that the experience we have gathered will provide the groundwork for future successes and help JSC FPC accomplish its goals, build on promising trends, and effectively grow.

Chairman of the Board of Directors, JSC FPC