STATE TRANSPORT LEASING COMPANY
FEBRUARY 2020
No1 No1 No1 No1 >17 IN OVERALL IN WATER IN RAILWAY IN AVIATION BN USD VOLUME TRANSPORT TRANSPORT TRANSPORT OF LEASING OF LEASING LEASING * LEASING * LEASING * PORTFOLIO PORTFOLIO
* according to Expert RA research of the leasing market, 9М 2019 BRIEF HISTORICAL OVERVIEW
2009-2010 2011-2012 2013-2014 2015 2016 2017 2018 2019
• Establishing a • STLC is among TOP-5 • STLC entered the • STLC is the leader in the • STLC successfully • STLC is the largest • The investments of STLC • Increasing STLC's specialized leasing companies in the leasing Asian borrowed capital segments of air transport plased the debut issue leasing company in in Russia’s transport capital by USD 219.7 company on the basis market, taking the markets: in cooperation leasing segment and that of 5-year Eurobonds Russia in terms of the industry exceeded USD mln of budget funds of STLC, OJSC, in line leading positions in with ICBCL, it funded of operating leasing * for USD 500 million leasing portfolio and 12 billion on the implementation with the instructions of the transport leasing the delivery of five • The State made two among a wide range of new business volumes • Construction of of aircraft and water V.V. Putin for purchasing segments * Airbus A321 to Aeroflot contributions to the international investors • Attracting a syndicated the "Lavna" coal transport leasing domestic automotive • Implementing a non- • STLC is the largest AC STLC's authorized • Increasing STLC's credit line from transshipment facility programs, as well as and road construction commercial leasing supplier for regional capital for a total of USD capital by USD 200.3 Gazprombank, ICBC, has been launched digital assets leasing machinery program program through aviation and entered the 565.4 million million of budget funds RRDB, CBM, Banca • The volume of federal • The Ministry of reinvestment of lessees’ water transport leasing • Initiated activities as part of supporting the Intesa and Bank of China budget subsidies • STLC successfully Transport of the Russian funds market for the development leasing of Russian AC for the amount of up allocated to STLC in placed third and fourth Federation is authorized • Active development of • Launching a pilot of operating leasing of and development of to USD 696.2 million 2018 was equal to USD issues of Eurobonds for to exercise shareholder the railway equipment program for leasing SSJ100 ferry transport in the to fund the leasing of 334.4 million USD 1.05 bn rights Far East SSJ100** leasing motor vehicles running • Further development of • STLC leased more than • STLC’s credit ratings • Starting the • Developing the leasing on gas engine fuel the partnership with the • CMB Financial Leasing • Increasing STLC's 30% of the total amount from Moody’s, S&P implementation of the of regional aviation • Debut bond issue at the Chinese financial market Co provided a credit capital by USD 182.5 of innovative cars Global Ratings, and target leasing program facility to fund the million as part of Fitch Global Ratings • Assigning a long-term MICEX stock exchange – financed the delivery produced in Russia in with State participation (USD 323 million) of 3 Boeing 777-300ER supply of seven new implementing projects 2018 increased to Ba1, BB and ВВ- credit rating by S&P Airbus А320-214 aircraft to support the leasing BB+ respectively • Increasing the • At the end of 2013, units to Aeroflot • STLC began the Company’s capital by • At the end of 2012, to Aeroflot of domestic AC and • An Act of financial the total amount of STLC is among TOP-3 the development of the implementation of the air USD 161.5 million companies in terms of • Assigning long – term park monitoring system closure was signed as in order to support investments in non- international credit Vanino – Kholmsk ferry part of a concession commercial leasing the operating leasing crossing • Foreign platform for non- domestic producers volumes* ratings: Ba2 by Moody’s, project for the creation under the program of programs exceeded BB- by Fitch. The • Placing the second issue primary export has been and operation of anti-crisis measures of USD 323 million • ICBC opened a credit rating assigned by S&P of Eurobonds for the created - GTLK GLOBAL infrastructure facilities of the Government of the facility for USD 800 upgraded to BB- with a amount of USD 500 BUSINESS the seaport of Murmansk Russian Federation million for funding deals “stable” forecast million for 7 years • STLC was ranked in with aircraft • STLC’s leasing portfolio • Developing commercial • The Fitch rating TOP-10 of Russian bond exceeded USD 17 billion leasing programs using • Start of the increased to BB with a issuers according to implementation of Cbonds • STLC created a new borrowed funds of “positive” forecast; S&P direction of digital Russian banks the energy efficient and Moody`s increased transport leasing development and the long- term STLC launched an accelerator program with state co- rating forecast from financing for innovative projects in “stable” to “positive” the transport industry • At the end of the year, • Awarding the А+(RU) STLC is the leader in rating by the ACRA the segment of water agency transport leasing in terms of the new business volume*
* According to Expert RA research of the leasing market ** Line initially opened by Gazprombank in December 2016; in March 2017, the creditors’ syndicate was joined by ICBC and RRDB, and in May 2017, Credit Bank of Moscow, Banca Intesa, and Bank of China
2 Presentation of STLC's key development indicators KEY DEVELOPMENT INDICATORS
State Transport Leasing Company (STLC, the Company) The total amount of STLC's investment in the Russian STLC is a versatile leasing company, which has a is the largest leasing company in Russia transport sector in 2009–2019 was USD 15.7 billion; diversified and stable leasing portfolio the multiplier effect of budgetary investments, 1:8 The Russian Federation is the Company’s sole STLC's clients and partners are major Russian shareholder (represented by the Ministry of Transport of STLC’s total portfolio volume grew from USD 27 million enterprises, state companies, and financial institutions the Russian Federation) in 2009 to USD 17.8 billion as of 31.12.2019. The volume of new business for 2019 equals USD 3.5 STLC's credit rating is below Russia's sovereign credit STLC’s authorized capital has been created by the billion rating by one notch Government of the Russian Federation in the form of monetary contributions for the implementation of state programs to support the domestic transport sector in the amount of USD 1.7 billion 17,801
14,974 STATE INVESTMENT DYNAMICS OF STLC'S STLC'S LEASING PORTFOLIO STRUCTURE IN TERMS IN STLC'S HOLDING NEW BUSINESS AND OF THE INVESTMENT AMOUNT, COMPANY, USD million LEASING PORTFOLIO as of 31.12.2019*
№1 8,642 IN TERMS OF THE PORTFOLIO SIZE 2009 161.5 Other 3% 2015 565.4 Motor transport, road Air transport 2016 200.3 construction transport 3% 37% 2017 182.5 5,508 2018 334.4 Water
100% 4,022 19%
3,541 transport IN THE FEDERAL
OWNERSHIP 2019 219.7 3,515 2,562 2,536 2,157
2,174 39% Railway transport 1,464 921 934
STLC'S INVESTMENT IN 638 444 501 320 128 199 TRANSPORT SECTOR, 21 27 USD billion* STLC CREDIT RATING 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009-2019 15.7 New business, USD million AKPA Leasing portfolio, USD million Bа1 BB+ BB А+(RU) * The investment amount under existing contracts reduced by the amount of compensation for contract value in received leasing payments
3 Presentation of STLC's key development indicators KEY FINANCIAL INDICATORS, IFRS
As of September 30th 2019, STLC’s assets have increased by 21% and exceeded STLC meets key profitability targets set by the shareholder USD 10 billion (according to IFRS) STLC maintains a consistently high level of capital adequacy For the 9months of 2019, the Company's net profit amounted to USD 39.6 million Growth of equity capital significantly increases the borrowing potential of STLC and the Company's development opportunities
10.2
8.4 17% STLC'S ASSETS, USD billion* KEY PERFORMANCE INDICATORS (IFRS), USD million (9M 2019)* 20% 4% 3% 32% 5.5 34% 17% 4% REVENUE 686.2 3.7 PROFIT FOR THE PERIOD 3.0 39% 39.6 27% 21% 4% ROE 11% 3.4% 1.6 38% CAPITAL ADEQUACY 10% 45% 3% (CAPITAL/ASSETS) 14% 30%
57% 23% 31% 40% 43% 47%
2014 2015 2016 2017 2018 9М 2019
Net investment in leases Cash and cash equivalents * According to the exchange rate of the ruble 1 USD= 61.9057 RUB Assets under operating lease Other assets
4 Presentation of STLC's key development indicators LEADING MARKET POSITIONS
STLC is the largest leasing company in Russia in terms TOP-10 RUSSIAN LEASING COMPANIES TOP-10 RUSSIAN LEASING COMPANIES IN TERMS of the leasing portfolio volume (market share – 22%) IN TERMS OF THEIR LEASING PORTFOLIO OF THE NEW BUSINESS SIZE AMOUNT (as of 31.12.2019), USD billion* (as of 31.12.2019), USD billion* STLC is the leader in terms of portfolio volume in the segments of aircraft, railway and water transport STLC 17.7 Sberbank Leasing 3.4 Sberbank Leasing 12.5 STLC 3.3 STLC is the leading company in Russia in terms of VTB Leasing 9.4 VTB Leasing 2.2 bonds placed at the financial market VEB-leasing 6.7 VEB-leasing 1.5 Gazprombank Leasing 3.9 Europlan 1.4 Alfa Leasing 2.5 Alfa Leasing 1.0 Europlan 1.7 Gazprombank Leasing 1.0 RESO-Leasing 1.2 Baltic Leasing 0.9 Siemens Finance 1.1 RESO-Leasing 0.8 Baltic Leasing 1.0 Siemens Finance 0.7
STLC IN LEASING SEGMENTS IN TERMS OF THE LEASING PORTFOLIO VOLUME **
AIR TRANSPORT RAILWAY TRANSPORT WATER TRANSPORT
11% STLC STLC 17% 17% STLC Other 23% VTB Leasing Other 29% Sberbank 53% Leasing 30% 13% 5% Sberbank Mashprom #1 #1 Leasing Leasing #1 15% VEB leasing 11% 9% 22% 29% Gazprombank Sberbank 16% VTB Leasing Other Leasing Leasing VEB leasing
*according to preliminary results of RAEX research of the leasing market, 2019 **according to Expert RA research of the leasing market, 9M 2019 5 Presentation of STLC's key development indicators SUSTAINABLE FUNDING
STLC has successful experience attracting An active issuer in the international and local Financing of the most capital-intensive leasing funding from international and Russian financial markets: transactions in the aviation segment are carried out institutions – a loan agreement with the Black Sea - Four eurobond issues worth a total in conjunction with Chinese credit organizations. Trade and Development Bank (BSTDB) worth USD of USD 2.05 billion; Around USD 1 billion has been attracted from 69 million was signed in February 2019 during the - Local bond issues worth a total of more than Industrial and Commercial Bank of China (ICBC) Russian Investment Forum in order to finance the 160 billion RUB and China Merchants Group construction of Lavna coal terminal in Murmansk seaport
WELL-BALANCED FUNDING STRUCTURE* WELL-BALANCED LOAN STRUCTURE BY MATURITY** WELL-BALANCED CURRENCY STRUCTURE 9M 2019, % 9M 2019, % 9M 2019, %
47% 5% Under 1 year From 1 to 5 years Bank Financial leasing FUNDING** 63% loans liabilities 14% 49% 37%
62% LEASING PORTFOLIO*** 38%
RUB USD
18% International bonds STLC RANKED AMONG TOP 5 RUSSIAN INTERNATIONAL BOND ISSUERS FOLLOWING RESULTS OF 2019 30% (ACCORDING TO CBONDS) Local Over 5 years bonds 37% STLC IS №14 RUSSIAN BOND ISSUER ON THE DOMESTIC MARKET FOLLOWING RESULTS OF 2019 (ACCORDING TO CBONDS)
* According to IFRS ** The amount of loans, finance lease and bonds according to IFRS *** The amount of net investments in financial lease (before impairment) and value of assets leased out under operating lease according to IFRS
6 Presentation of STLC's key development indicators STLC'S ROLE FOR THE GOVERNMENT
100% STATE OWNED
The Russian Federation is the Company’s sole shareholder (represented by the Ministry of Transport of the Russian Federation)
STRONG FINANCIAL TRANSPORT INDUSTRY SUPPORT DEVELOPMENT INSTRUMENT
The State maintains the Company’s high level of During its 18 years of operation STLC developed capital adequacy from a regular leasing company into a unique In 2009–2019, the Government of the Russian development institution of the transport industry Federation contributed USD 1.7 billion* in the capable of implementing domestic and international Company’s capital projects
ACTIVE PARTICIPATION IN COMPANY ACTIVE IMPLEMENTATION MANAGEMENT OF STATE PROGRAMS
STLC’s Board of Directors is led by the Since 2009, STLC has actively implemented the Deputy Chairman of the Government of the programs of the Government of the Russian Russian Federation M. A. Akimov Federation The State approves Company long-term Implementation of programs in the main areas: development program • air transport • water transport • railway transport • energy efficient-machinery • transport infrastructure • digitalization
* According to the exchange rate of the ruble 1 USD= 61.9057 RUB 7 Presentation of STLC's key development indicators IMPLEMENTATION OF STATE SUPPORTED LEASING PROGRAMS
THE VOLUME OF STATE CO-FINANCING OF 1,662 VOLUME OF INVESTMENTS* AND PROCUREMENT OF STLC’S LEASING PROGRAMS, USD million* EQUIPMENT UNDER STLC’S IMPLEMENTED LEASING PROGRAMS WITH STATE CO-FINANCING 1,442.5 171.2 48.5 334.4 1,107.9 PROCUREMENT PROGRAM INVESTMENT 925.8 150.2 UNDER THE PROGRAM STRUCTURE 725.3 142.2 32.3 57.5 1 SSJ100 leasing USD 1,534.6 mln** 484.6 development: 48% 52% 46 units 161.5 79.2 161.5 161.5 725.3 925.8 1,107.9 1,442.5 2 Helicopter leasing USD 715.6 mln ** development: 40% 60% 2009 2015 2016 2017 2018 2019 120 units
USD USD USD USD USD 3 Leasing of road constr., 29% 71% USD 565.4 mln** 161.5 mln 484.6 mln 64.6mln 158.3 mln 32.3 mln street cleaning and other machinery: Domestic 7 thousand units automobile and Domestic aircraft SSJ100 leasing development program road construction 4 Leasing of water vehicles leasing transport: 59% 41% USD 313.4 mln** development USD USD USD USD USD 79.2 mln 61.4 mln 117.9 mln 80.8 mln 27.5 mln 28 units 5 Leasing of energy Energy efficient efficient transport: 43% 57% USD 185.8 mln** transport non- Domestic helicopter leasing development program commercial 931 units leasing program USD USD USD 6 Ferry leasing: 16.2 mln 32.3 mln 19.4 mln 2 units 55% 45% USD 161.5 mln**
L-410 aircraft leasing development program 7 Digital assets leasing: USD 166.4 mln** State co-financing for leasing 10 projects 29% 71% programs with prolongation USD USD USD USD 57.5 mln 32 mln 95.3 mln 92.1 mln State co-financing for other 8 L-410 leasing development: 54% 46% USD 124.4 mln** leasing programs Vanino–Kholmsk ferry crossing Domestic water transport leasing development project development program (cargo ships, 19 units STLC’s authorized capital at the passenger ships , dredge ships) beginning of the year Federal budget investments Extrabudgetary investments, % USD in the program, % * According to the exchange rate of the ruble 1 USD= 61.9057 RUB 48.5 mln ** The total planned volume of investments into the program Digital assets 8 leasing Presentation of STLC's key development indicators LEASING PORTFOLIO STRUCTURE
CHANGE IN THE LEASING PORTFOLIO FINANCIAL LONG-TERM STRUCTURE* BY LEASING TYPES LEASE OPERATING 51%60% LEASE 40% 44% 40% 33% 50%
DIVERSIFIED PORTFOLIO 97% OF PORTFOLIO** IS AIRCRAFT LEASING 55%
STLC operates in more than 7 segments of Long-term operating lease is the main method 65% leasing (railway, water, air, passenger motor of funding in the global aviation industry transport, road construction machinery, etc.) 67% 35% 45% 50% 56% 60% The shares in the portfolio are well-balanced by LONG-TERM CONTRACTS 2014 2015 2016 2017 2018 9М 2019 areas The average terms of contracts for operating Financial lease lease are about 10 years Operating lease HIGH VALUE AND COLLATERAL QUALITY INTERNATIONAL RISK MANAGEMENT LEASING PORTFOLIO DIVERSIFICATION* Ratio of collateral value to net investment in STANDARDS leases is near 100% IN THE KEY SEGMENTS Creation of reserves for the future maintenance of aircraft significantly reduces operational risks 14% 6% 10% 8% 5% 5% HIGH QUALITY LEASE PORTFOLIO
Low level of overdue payments and efficient STRONG CLIENT BASE 40% 60% 52% 51% 50% 49% risk-management system
42% 30% 27% 33% 37% 36% 4% 5% 11% 8% 9% 10% 2014 2015 2016 2017 2018 9М 2019
Water transport Railway transport Air transport Note: Figures cannot be summed up correctly due to rounding Other
* Based on the IFRS amounts of net investment in leases (before provisions) and assets under operating lease ** Based on the IFRS amounts of assets under operating lease
9 Presentation of STLC's key development indicators AIRCRAFT LEASING
STLC IS ONE OF THE LEADERS IN THE RUSSIAN SEGMENT OF SUPPORT FOR PERSPECTIVE MODELS STLC'S INVESTMENT IN LEASING OF CIVIL AIRCRAFT LEASING OF DOMESTIC AIRCRAFT AIRCRAFT, USD million* As of 31.12.2019, STLC’s portfolio included 251 aircraft of different type Planning to implement leasing programs of perspective domestic aircraft: SSJ100 LEASING DEVELOPMENT IL-114-300, IL-96-400M, MC-21 5,801 Since 2015, STLC has implemented the project to promote the sales of SSJ100 aircraft through the operating and financial leasing . STRUCTURE OF THE STLC'S 4,712 In 2015-2019 STLC received a contribution to the authorized capital worth USD 739.8 million* of budget funds for purchasing and leasing 46 AIRCRAFT PORTFOLIO, units units of SSJ100 aircraft in 2015-2021 A total of 41 SSJ100 aircraft were leased as of 31.12.2019 Airbus**: 44 units SUPPORT OF DOMESTIC AIRCRAFT CONSTRUCTION AND SMALL 3,794 AVIATION Boeing***: STLC participates in the project localizing the manufacture of Let L-410. 20 units In 2016-2019, STLC was provided with additional funds of USD 67.8 million* from budgetary funds to purchase and lease out 19 L-410 aircraft Bombardier****: 3 units As of 31.12.2019, a total of 13 L-410 aircraft were leased to Russian regional airlines AS350 B3: DOMESTIC HELICOPTER LEASING DEVELOPMENT 1 units 2,595 STLC is the largest customer of domestically-produced helicopters for the sanitary aviation. SSJ100: 44 units In 2016-2019 STLC received a contribution to the authorized capital worth USD 287.5 million* of budget funds for purchasing and leasing 120 units of domestic helicopters (including 88 Mi-8 helicopters and 32 L410: 14 units Ansat helicopters) equipped with medical modules in 2017-2021.
As of 31.12.2019 STLC delivered 85 units to lessees. Let L410: 12 units 1,344 KEY CLIENTS: Mi-8: 83 units Ansat: 29 units 753
Robinson: 565 1 unit
* According to the exchange rate 33 of the ruble 1 USD=61.9057 RUB ** Airbus A321, A320, A319, A220-300 *** B737-800, B737-400, B777-300ER 2012 2013 2014 2015 2016 2017 2018 2019 **** CRJ200, Challenger 850 10 Presentation of STLC's key development indicators RAILWAY TRANSPORT LEASING
STLC IS THE LEADER IN THE RUSSIAN SEGMENT KEY PARTNERS: DYNAMICS OF GROWTH OF STLC'S CAR OF RAILWAY TRANSPORT LEASING FLEET, units 102,255 As of 31.12.2019 STLC’s freight car fleet has 102.3 thousand units, 72.1 thousand of which have already been transferred to lessees. STLC’s share 75,248 equals 6% of the total amount of freight cars in Russia STLC is one of the leaders in terms of the fleet size of innovative cars (the total amount of innovative cars leased out is 39.8 thousand units)
RENOVATION OF THE COMMUTER ROLLING STOCK Leased to Central Exurban Passenger Company 44,987 30 units of eleven-car EP2D electric trains made by DMZ, OJSC A deal for the leasing out of 8 units of new locomotive- hauled passenger cars (model 61- STLC'S CAR FLEET STRUCTURE 4458), equipped with lifting devices for disabled passengers and accompanying personnel, 30,303 produced by JSC Tver Carriage Works, was 59 thous. units 3 thous. units concluded with "Sverdlovsk suburban company" 57% Innovative gondola cars 2% Other JSC
A deal was concluded on the leasing out of 5 18,562 four- wagon EP3D electric trains, produced by 2 thous. units 18,543 Demikhovo Machinebuilding Plant, to "Volga- 2% Tank cars 16,626 Vyatka suburban passenger company". The 102.3 electric trains will be used within the Nizhny thous. 13 thous. units 9,661 Novgorod region, the control wagons are units 13% Hoppers equipped with devices for disabled passengers 18 thous. units 5,420 17% 9 thous. units Gondola cars 9% Flat cars
2011 2012 2013 2014 2015 2016 2017 2018 2019
11 Presentation of STLC's key development indicators WATER TRANSPORT LEASING
STLC IS THE LEADER IN THE RUSSIAN SEGMENT KEY PARTNERS: STLC'S INVESTMENT IN WATER TRANSPORT OF WATER TRANSPORT LEASING LEASING, USD million** STLC is the leading leasing company in terms of the 2,658 volume of new business and leasing portfolio in the segment* As of 31.12.2019, the Company’s fleet included 138 units of various types of ships
DEVELOPMENT OF THE DOMESTIC SHIPBUILDING INDUSTRY AND IMPORT SUBSTITUTION PROCESS STIMULATION 1,514 In 2014-2019 STLC placed orders for the construction of 101 vessels in domestic shipyards, 49 units of which were already transferred to lessees The construction of ships is carried out at shipyards of Krasnoye Sormovo, OJSC, Nevsky Shipyard, LLC, Nefteflot, CJSC, and Okskaya Shipyard, OJSC STLC'S FLEET STRUCTURE STLC implements the development program of the Vanino-Kholmsk ferry crossing to connect 904 the Island of Sakhalin with the mainland Russia. The construction of 2 ferries at the public 72 units 4 units company"Amur Shipbuilding Plant" was launched 52% Dry cargo ships 3% Other in 2017 to replace obsolete ships
Subsidies in the amount of USD 187.4 million** 11 units 588 were allocated in 2018-2019 for the purchase 8% Passengers ships of 28 vessels (15 units of dry cargo ships, 9 units of passenger ships, 4 units of dredge ships in 2019-2024) for further delivery under leasing 2 units agreements. In 2019 STLC concluded leasing 2% Ferries 245 agreements and construction contracts for all 13 138 units of water transport in accordance with the units 6 units 161 program, 3 of which have already been constructed 4% Сombined vessels 106 and delivered under leasing agreements 8 units * According to Expert RA research of the leasing 6% Towboat market, 9M 2019 21 units 14 units ** According to the exchange rate of the ruble 1 2013 2014 2015 2016 2017 2018 2019 Oil tankers Barge USD= 61.9057 RUB 15% 10%
12 Presentation of STLC's key development indicators ENERGY EFFICIENT TRANSPORT LEASING
ORDER OF THE GOVERNMENT OF THE RUSSIAN FEDERATION NO. 767-R DATED MAY As part of the Order, STLC has STLC uses federal budget investments launched a pilot program of non- and return funds from lessees under 13, 2013 “ON REGULATION OF RELATIONS IN commercial leasing for supply of non-commercial leasing programs for THE USE OF GAS ENGINE FUEL , INCLUDING passenger motor vehicles running the supply of passenger vehicles on on gas engine fuel gas-engine fuel and electric transport NATURAL GAS, AS ENGINE FUEL” on preferential terms
STLC IS A ONE OF THE LEADERS IN LEASING OF VEHICLES RUNNING ON GAS ENGINE FUEL, AND GROUND ELECTRIC VEHICLES
STLC plans to expand its participation in the implementation of non- commercial leasing programs in Russian regions with a developed or FEDERAL BUDGET INVESTMENTS developing gas-engine fuel infrastructure. The Company already carries out IN THE AUTHORIZED CAPITAL supplies to the following constituent entities of the Russian Federation: 79.2 OF STLC IN 2015 MILLION USD**
Tula Region Republic of Komi Chelyabinsk Region Saint Petersburg and Leningrad Region STLC'S INVESTMENT Sverdlovsk Region Volgograd Region IN THE ENERGY EFFICIENT Samara Region Republic of Crimea and Sevastopol* MACHINERY MARKET 242.3 Omsk Region Chuvash Republic IN 2012 – 31.12.2019 MILLION USD** Yamalo-Nenets Autonomous Area Ulyanovsk Region Moscow Orenburg Region STLC'S PROCUREMENT OF ENERGY EFFICIENT 1.9 MACHINERY IN 2012 – 31.12.2019 * Order of the Russian Government from December 30th, 2014 № 2788-r THOUS. UNITS ** According to the exchange rate of the ruble 1 USD= 61.9057 RUB
13 Presentation of STLC's key development indicators INTERNATIONAL LEASING DEVELOPMENT
GTLK GLOBAL BUSINESS - FOREIGN LEASING PLATFORM KEY CUSTOMERS: GTLK GLOBAL BUSINESS PORTFOLIO CREATED (BASED ON GTLK EUROPE DAC, GTLK MIDDLE EAST, ALLOCATION, units AND GTLK ASIA LTD) TO DEVELOP NON-RESOURCE EXPORT AIR FLEET GTLK Europe DAC – STLC’s subsidiary registered in Ireland in 2012 In 2018, in order to diversify the geography of borrowing and to 44 3 facilitate the attraction of financing in the Asian region following units units companies were registered: GTLK Asia LTD in Hong Kong and GTLK Middle East in Dubai GTLK GLOBAL BUSINESS successfully attracts financing in international debt capital markets as an independent borrower under the guarantee of STLC Key priorities of GTLK GLOBAL BUSINESS: 67 - Development of international leasing of aircraft and water units transport 20 - Optimization of the cost of extrabudgetary investments attracted units by STLC for the development of the transport industry - Promoting the export of domestic equipment - Export development of financial, leasing services
STLC LEASING INFRASTRUCTURE: FLEET OF SHIPS RUSSIA AND WORLD
19 1 unit STLC Dry cargo vessels units Towboat (Russia) 1 unit 100% Oil tanker
2 units Maritime cranes GTLK Asia LTD GTLK Europe DAC GTLK Middle East GTLK GLOBAL BUSINESS 29 units (Hong Kong) (Ireland) 100% (Dubai) Air transport leasing 6 Water transport leasing units Passengers ships International funding
14 Presentation of STLC's key development indicators TRANSPORT INFRASTRUCTURE DEVELOPMENT
TRANSPORT AND LOGISTICS COMPLEX COAL TRANSSHIPMENT COMPLEX LAVNA "YUZHNOURALSKY"
DESCRIPTION
Operation of a customs point with a warehouse and a Construction of a port complex for coal transshipment railway container terminal with a capacity of 2.5 million with a capacity of 18 million tons / year in the seaport of tons / year (Chelyabinsk region) Murmansk
CURRENT STATUS
Container rail transportation is carried out on the basis An act of financial closure was signed under a concession of the "shuttle" agreement. Phase 1 is under construction
EFFECT FOR TRANSPORT INFRASTRUCTURE Strategic object for the development of the new «Silk Increase in the volume of energy coal export Road» Transfer of cargo flows from Baltic to Russian ports Shorter delivery times compared to existing routes The development of new markets by increasing the Simultaneous development of railway and road capacity of ships transport
15 Presentation of STLC's key development indicators LEASING OF DIGITAL ASSETS
STLC IS ONE OF THE FIRST COMPANIES WHICH CREATED A NEW DIRECTION OF DIGITAL DEVELOPMENT
STLC contributes to the realization STLC is ready to consider both NATIONAL PROGRAM of innovative development classical leasing and projects «DIGITAL ECONOMY» programs with direct financing (including concession)
ACTIVE START AND PROACTIVE WORK THE VOLUME OF FEDERAL BUDGET SUBSIDIES 48.5 STLC MAINTAINS STRONG PARTNERSHIP RELATIONS WITH THE KEY IT ALLOCATED TO STLC IN 2019 MILLION USD COMPANIES STLC signed cooperation agreements with the largest market players in the field of integrative IT solutions and services and cyber security ESTIMATED VOLUME OF LEASING TRANSACTIONS STLC SUPPORTS TECHNOLOGICAL PROJECTS ON PREFERENTIAL TERMS 161.5 STLC launched the corporate accelerator for innovative projects in the transport industry based on GenerationS, which is a platform for development IN 2020-2024 MILLION USD of corporate acceleration from Russian Venture Company
STLC PLANS TO IMPLEMENT KEY PARTNERS: "END-TO-END" DIGITAL TECHNOLOGIES AND >10 PLATFORM SOLUTIONS IN PROJECTS 2020–2024
16 Presentation of STLC's key development indicators CORPORATE ACCELERATOR
STLC TOGETHER WITH RUSSIAN VENTURE COMPANY CREATES THE UNIQUE CURRENT RESULTS PLATFORM TO DEVELOP INNOVATIONS IN THE TRANSPORT INDUSTRY
SELECTED FOR PARTICIPATION IN THE INNOVATION PROGRAM (STARTUP TEAMS FROM RUSSIA, 340 GERMANY, ISRAEL, SINGAPORE, APPLICATIONS TARGETS KAZAKHSTAN, INDIA AND The accelerator is aimed at promoting the transport industry evolution by providing OTHER COUNTRIES) support to the projects, which technologies may be used in designing, production and operation of different vehicles - air, water, rail, passenger and cargo land transport, trucks and special equipment – and in implementation of infrastructure transport projects
DIRECTIONS BY TECHNOLOGY GEOGRAPHY OF PROJECT PHASE APPLICATIONS Industry 4.0 and new production technologies in transport engineering Functional Unmanned transport 133 77% Russia prototype Energy efficient transport Pilot Vehicle lifecycle management Foreign 23% production 69 Transport safety countries Digitalization and cyber security Serial production 59 Development of transport infrastructure Leasing operations
PLANS AND KEY ACTIVITIES Expert review and selection of the best projects - at least 10 Individual acceleration program Planning and launching pilot projects with STLC partner companies - at least 5
17 Presentation of STLC's key development indicators SUCCESSFUL PLACEMENT OF THE THIRD AND FOURTH ISSUES OF EUROBONDS
MAJOR ISSUE ISSUE 3 ISSUE 4 In 2019, STLC placed 2 new issues of Eurobonds Both issues of Eurobonds were in high demand PARAMETERS for USD 1.05 bn The decrease in profitability during the placement The main investors included the largest amounted to 37.5 BPS on the issue 3 and 42.5 BPS Issuer GTLK Europe Capital DAC institutional investors from Europe, Great Britain on the issue 4 and Russia Guarantor(s) PJSC «STLC», GTLK Europe DAC The coupon rate for issue 4 – 4.949% per annum, The share of foreign investors in April was 79%, in it is the minimal coupon rate among all issues of September – more than 65% STLC Eurobonds Size USD 500 mln USD 550 mln Tenor 6 years 6.5 years
Coupon rate 5.95% p.a. 4.949% p.a.
GEOGRAPHICAL SPREAD OF INVESTORS TYPE OF INVESTORS Issue price 99.132% from nominal 100% from nominal
70% 36% Yield 6.125% 4.95% 41% 46% Starting Date April 17, 2019 October 2, 2019
35% Format Regulation S
21% 20% Listing Euronext Dublin 5% 59% 54% 4% 9% Ba2 (Moody’s) / BB Ba2 (Moody’s) / BB+ Issue ratings* Issue 3 Issue 4 Issue 3 Issue 4 (Fitch) (Fitch)
J.P. Morgan, Societe Gazprombank, J.P. Europe (inc. Great Britain) Banks Generale, Renaissance Morgan, Renaissance Russia Management companies and hedge funds Organizers Capital, Sovcombank, Capital, VTB Capital VTB Capital , USA (offshore) Gazprombank Asia, Middle East and North Africa (MENA) * as of the time of bond placement
18 Presentation of STLC's key development indicators SUSTAINABLE BALANCE STRUCTURE
STLC’s assets increased exponentially due to growth Company effectively diversified its funding structure STLC maintains a high level of capital adequacy in volume of the new business by issuing ruble and foreign bond loans due to additional contributions to its capital and continuous improvement of its operational efficiency
ASSETS*, USD billion LIABILITIES*, USD billion CAPITAL*, USD million
Capital/Assets, %
CAGR CAGR 48,2** 47,0%** 20% 13% 11% 25% 25% 19% 17% 14% 16% 8.7 3% 7.0 10.2 3% 1,640 8.4 17% 4.4 In 2019, USD 220 million of 5.5 5% contributions to the capital 1,431 20% 4% 17% 4% 3% 1,402 2.8 47% Including subsidies worth USD 334 3.7 3% million received in 2018 48% 34% 32% 39% 2.3 57% 3.0 1% In 2017, USD 183 million of 1,055 27% 5% contributions to the capital 21% 4% 4% 29% 49% In 2016, USD 200 935 11% 6% million of contributions 1.4 to the capital 1.6 1% 734 38% 24% 29% 10% 45% 18% 3% 14% In 2015, USD 30% 565 million of contributions to the capital 57% 23% 31% 40% 43% 47% 61% 41% 30% 32% 44% 46% 169 2014 2015 2016 2017 2018 9М 2019 2014 2015 2016 2017 2018 9М 2019 165 166
Net investment in Cash and cash Loans received Bonds issued 2012 2013 2014 2015 2016 2017 2018 9М 2019 P 2019*** leases equivalents Assets under Other assets Financial leasing liabilities Other liabilities operating lease
*According to IFRS Note: Numbers may not sum up correctly due to rounding ** Average annual growth rate ***Including budget subsidies allocated to STLC in 2019 Source: according to IFRS 19 Presentation of STLC's key development indicators REVENUE AND MARGINS
Significant revenue growth, primarily due to the development of the operating STLC maintains high operational efficiency and provides control over leasing segment operational expenses while the business volume is growing
757.6 +27.1% 5% REVENUE, USD million 686.5 OPERATIONAL EFFICIENCY OPERATIONAL COSTS / ASSETS*, % 7%
539.5 CAGR 51% 6% 1.8% 45.2% 481.4 45% 5% 1.4% 52% 357.0 5% 51% 1.1% 269.8 1.0% 10% 59% 171.2 0.6% 3% 43% 22% 0.5%
75% 47% 35% 45% 43% 42% 48%
2014 2015 2016 2017 2018 9М 2018 9М 2019 2014 2015 2016 2017 2018 9М 2019
Finance lease Operating lease Other interest income income income
Note: Figures cannot be summed up correctly due to rounding *The ratio of administrative costs and average annual assets (according to IFRS)
20 Presentation of STLC's key development indicators IFRS FINANCIAL STATEMENTS BALANCE
Balance [USD million]* 2012 2013 2014 2015 2016 2017 2018 9M 2019
Assets 836.5 1,328.1 1,568.3 2,991.7 3,749.2 5,501.7 8,424.0 10,160.4 Cash and cash equivalents 87.6 120.9 44.9 318.0 153.4 202.3 223.8 388.8 Investments in securities 0 32.6 0 0 0 0 0 0 Net investment in leases 621.2 861.7 898.1 684.1 1,145.2 2,195.5 3,644.9 4,773.8 Assets under operating lease 0 218.3 464.5 1,355.5 1,423.8 2,170.6 2,840.3 3,258.0 Equipment purchased for leasing purposes 0.6 1.1 0 0 0 0 32 16.4 Advances to equipment leasing providers 75.7 37.8 92.8 525.7 640.6 578.6 922.4 1,107.2 Investment property 3.2 3.1 3.1 3.0 96.5 100.5 73.4 72.2 Fixed assets and intangible assets 0.8 0.8 0.7 1.0 1.0 2.2 3.1 8.7 VAT recoverable 18.4 9.2 0 20.1 106.5 64.3 65.3 73.9 Current tax assets 0.7 2.3 0 0.6 4.4 2.4 1.0 1.0 Deferred tax assets 2.5 4.7 11.7 16.8 12.8 32.5 37.2 36.6 Equity capital 164.7 166.2 168.9 733.8 935.1 1,054.2 1,402.2 1,430.5 Share capital 161.6 161.6 161.6 726.0 926.6 1,108.7 1,108.7 1,108.7 Undestributed profits 3.1 4.6 7.4 7.8 8.5 -54.5 -45.7 -14.3 Liabilities 671.8 1,161.9 1,399.4 2,257.9 2,814.2 4,447.5 7,021.8 8,729.9 Loans received 655.2 1,013.5 1,188.6 929.8 845.2 1,417.1 3,121.0 3,989.0 Issued bonds 0 0 0 649.2 1,391.4 2,536.9 3,378.0 4,092.4 Liabilities under financial leasing 0 118.7 190.2 650.9 501.1 284.6 312.4 420.8 Trade and other payables 4.8 5.2 9.6 14.9 59.3 189.1 131.2 116.0 Advances received 8.4 5.5 8.8 12.1 15.2 12.6 44.5 95.3 Derivative financial instruments 0 16.1 0 0 0 0 21.6 0.0 Current tax liabilities 3.5 3.0 2.2 1.0 1.9 0.5 1.5 3.0 Deferred tax liabilities 0 0 0 0 0 6.5 11.0 13.4 Total equity capital and liabilities 836.5 1,328.1 1,568.3 2,991.7 3,749.2 5,501.7 8,424.0 10,160.4
* According to the exchange rate of the ruble 1 USD= 61.9057 RUB 21 Presentation of STLC's key development indicators IFRS FINANCIAL STATEMENTS STATEMENT ON COMPREHENSIVE INCOME
Statement of Comprehensive Income [USD million]* 2012 2013 2014 2015 2016 2017 2018 9M 2019
Interest income from leasing operations 81.37 111.23 128.60 127.84 126.42 214.84 329.82 331.81 Other interest income 3.23 6.48 4.60 25.97 18.96 22.44 41.16 47.12 Income from operating leasing 0.00 3.83 37.52 116.26 191.16 209.71 387.31 307.26 Operating leasing depreciation 0 -1.18 -16.69 -55.39 -79.12 -108.91 -183.97 -151.59 Interest expenses -53.66 -82.12 -109.04 -163.65 -223.07 -282.72 -395.94 -396.28 Net interest income 30.93 38.22 45.02 51.05 34.36 55.36 138.47 138.32 Loss from interest-bearing assets -14.04 -11.39 -20.77 -30.24 25.39 -29.92 -18.01 -19.84 Net interest income after impairment 16.90 26.85 24.25 20.81 59.75 25.44 120.46 118.49 Administrative costs -12.55 -15.54 -15.77 -23.07 -24.17 -31.63 -44.62 -31.60 Other operating income and costs 1.28 0.60 7.29 18.71 1.34 -22.60 9.82 39.14 Income less costs from revaluation of foreign currency 0.00 0.24 45.29 44.78 -8.79 7.71 -1.34 1.11 Loss on impairment of non-interest assets -3.80 -8.19 -55.68 -58.51 -17.91 -50.58 -53.50 -46.02 Profit (loss) before taxation 1.83 3.96 5.38 2.70 10.21 -71.66 13.04 49.64 Tax on income -0.29 -1.87 -1.10 -2.07 -6.90 9.71 -3.23 -10.03 Profit for the period 1.53 2.07 4.28 0.63 3.31 -61.95 9.81 39.61 Other comprehensive income -0.29 -0.06 -0.23 0.32 -2.02 -1.08 7.85 -3.21 Total aggregate income 1.24 2.00 4.05 0.95 1.29 -63.03 17.66 36.39
Financial statements 2012 2013 2014 2015 2016 2017 2018 9M 2019
ROE (Net Profit (Comprehensive Income) / Annual Average Capital) 0.93% 1.25% 2.56% 0.26% 0.17% -6.52% 1.57% 3.42%
Equity / Assets 19.69% 12.51% 10.77% 24.53% 24.94% 19.16% 16.65% 14.08%
* According to the exchange rate of the ruble 1 USD=61.9057 RUB 22 Presentation of STLC's key development indicators STLC'S PARTNERS STLC cooperates on an ongoing basis with more than 70 manufacturers and STLC actively cooperates with the relevant dealers of machinery and constantly expands the range of its partners: associations and state corporations:
And maintains strong partnership relations with leading financial institutions:
23 Presentation of STLC's key development indicators STATE TRANSPORT LEASING COMPANY
73 Respublika St., Suite #100, Salekhard, Yamalo-Nenets Autonomous Area, 629008
Separate business unit in the city of Moscow: 31a Leningradsky Avenue, bldg #1, Moscow, 125284
+7 (495) 221-0012 www.gtlk.ru