Business model

State JSC FPC Key Partners Customers RZD Holding Regulation, subsidies, and interest in higher transport mobility of the population Control of service quality and safety levels to ensure they meet the approved standards JSC Railwaycar-Building Works Tver (TVZ) Finance market Labour market Materials and equipment market Technology market Technical services and maintenance market Enhancing the investment appeal of the transport services industry Enhanced budgetary efficiency of transport Market JSC Russian Railways Provider of locomotive and infrastructure services Transport services Supplier of carriages Resource suppliers Roszheldorsnab Supplier of equipment and materials Commuter companies Commuter companies Key value proposition for customers Value for passengers Safe, accessible and comfortable transportation Value for the state Transport mobility of population and efficient use of budget funds Value for corporate and other customers High quality of service at affordable prices within reasonable time Great travel experience Time saving Passengers Corporate Governmental authorities and agencies Other Key resources headcount 67,677 employees locomotive and infrastructure services RUB 2.7 billion carriage kilometres railcar fleet 21,059 carriages equipment and materials 26 depots technical services and maintenance >300 contractors the Company’s loan portfolio RUB 16.2 billion worth of loans and credits Promotion Lines of business Regulated domestic long-distance passenger servicesDeregulated domestic long-distance passenger servicesInternational long-distance passenger servicesLong-distance baggage, unaccompanied baggage, and mail transportationOther lines of business Product range Breakdown of FPC’s passenger revenue, % Cost breakdown, RUB billion Investment expenses,% Revenue breakdown, RUB billion Regional branded trains: luxury, first-class, compartment, third-class, multiple unit, open-plan seating carriagesStandard trains: luxury, first-class, compartment, third-class, multiple unit, open-plan seating carriagesInternational service: luxury, RIC, open-plan seating carriagesTourist trains Recognisable RZD brandRZD Bonus loyalty programmeMarketing promotionsInternet presenceAdvertising campaigns Sales channels, % Other Baggage, unaccompanied baggage, and mail transportationRepair and maintenance of clients’ rolling stockProvision of additional services on trainsOther services FPC’s ticket officesInternetAgents (third parties)Self-service terminals 68 23 8 1 Third-class carriagesFirst-class and compartment carriagesInternational services Acquisition of rolling stockUpgrade of rolling stockDepot upgrade and safetyIT programmeOther Passenger revenueFederal budget subsidiesRevenue from other activitiesRevenue from baggage, unaccompanied baggage, and mail transportationOther revenue 153.0 billion RUB RUB 210.1 billion 38 24,7 21,2 7,0 4,2 49 153,0 10 3 207.6 billion RUB Other expenses 82.0 63.5 15.3 8.6 38.2 Locomotives Expenses on other activities Infrastructure Carriages Operatingexpenses Passenger service expenses 199.0 183.7 70.8 21.9 4.5 2.2 0.6 17.8 млрд руб. FPC’s share in the long-distance passenger services market is 42%