Driving Force

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Driving Force Driving force 2020 ANNUAL REPORT Annual Report 2020 GRI 102-1, 102-48 – 102-52, 102-54 Contents About the Annual Report The scope of this annual report includes the companies of GTLK Group, which comprises JSC GTLK and its subsidiaries and associates. Financial statements are published annually. The current report covers the period from January 1, 2020 through December 31, 2020. 1.1. GTLKГТЛК todayсегодня 2 Support of sports and healthy lifestyle 71 A report containing information about GTLK’s activities in the area of sustainable Highlights 4 Observance of Human Rights 71 development in 2019 was published in July 2020. Message from the Chairman of the Board 8 Occupational health and safety 72 This report was prepared using the applicable Message from the CEO 10 Sponsorships and philanthropy 74 Global Reporting Initiative standards (GRI Standards) COVID-19 impact on GTLK business 12 Improvement of transport energy efficiency 76 and the principles of the UN Global Compact. In light of this, the report provides more extensive Procurement activities 78 information on sustainable development and ESG 2. GTLK profile 14 aspects. A list of the used standards is provided GTLK is a driving force 15 5. Corporate governance 80 in the GRI Index on page 228. GTLK in numbers 17 Competence and accountability 81 The main reasons for restatements of information in the report are the development Investments in development of domestic GTLK corporate governance practices 82 and improvement of the corporate reporting transport engineering 20 General shareholders meetings 85 system, and clarification of the scope of indicators Board of directors 86 and historical data. 3. Strategic report 22 Board committees 93 GTLK’s areas of focus 23 Executive management bodies 97 Leasing and operating leasing 24 Corporate secretary 98 International operations 34 System of remuneration for members Transport infrastructure development 36 of the board of directors and management Digital transformation 38 bodies 100 Financial overview 40 Control and audit 102 Strategy and development plans 43 Internal audit 102 Acquisition of VEB-Leasing assets 49 Internal control 102 Risk management and internal control 50 External audit 103 Internal audit commission 104 4. Sustainable development 58 Business ethics and anticorruption Sustainable development goals 60 practices 106 Socioeconomic impact 64 Information for investors 108 Engagement with stakeholders 66 Human resources management 68 6. Financial Results 110 Staff size and composition 68 GRI index 229 Employee engagement and social 233 programs 70 Statement of responsibility Training and professional development 70 Contacts 234 01 02 03 04 05 06 Annual Report GTLK GTLK Strategic Sustainable Corporate Financial 2020 today profile report development governance results GRI 102-7 GTLK 01 today TN RUBLES % 1.3 №1 100 LEASING ON RUSSIAN STATE OWNED PORTFOLIO LEASING MARKET¹ Instrument for implementation of government objectives and national projects Leader of Russian leasing market¹ Owner and operator of crucial leasing fleets of transport equipment International issuer with high credit ratings Fast-growing participant of the international leasing market Efficient and professional team that guarantees top business results GTLK today GTLK group’s profile² JSC GTLK GTLK TODAY HIGHLIGHTS International leasing — Leasing of rail GTLK Global Business transport MESSAGE FROM THE CHAIRMAN OF THE BOARD ТРЛН РУБ. MESSAGE FROM THE CEO COVID-19 IMPACT ON GTLK BUSINESS Development Finance of transport infrastructure ¹ By volume of portfolio and new business. Source: Expert RA rating agency data for 2020. ² Hereinafter — Company. 2 3 01 02 03 04 05 06 Annual Report GTLK GTLK Strategic Sustainable Corporate Financial 2020 today profile report development governance results Highlights July. GTLK’s leasing portfolio exceeds 1 trillion rubles. February. The Russian January. GTLK places September. GTLK launches Transport Ministry is authorized a debut bond issue corporate accelerator to support to exercise the rights of GTLK of 20 billion rubles innovative projects in the transport shareholder. ТОP-5 on the MICEX Stock №1 sector. GTLK BECOMES ONE Exchange. The Company launches GTLK IS RECOGNIZED AS THE LARGEST LEASING June. The first leasing program OF THE TOP FIVE LEASING a program to develop leasing October. GTLK is included in the COMPANIES IN RUSSIA COMPANY IN RUSSIA BY SIZE with government participation July. GTLK enters of SSJ100 airliners with OF PORTFOLIO AND AMOUNT national program “Digital Economy is launched. Asian funding markets. government co-financing. OF NEW BUSINESS of the Russian Federation”. 2009 2011 2013 2015 2017 2019 2006 2010 2012 2014 2016 2018 CJSC Civil Aviation Leasing The line of programs in new The Company launches May. GTLK receives long-term March. Construction begins on the Company is reorganized into segments of the leasing market a leasing program for energy credit ratings from Moody’s and Lavna Coal Terminal in Murmansk. OJSC State Transport Leasing is expanded to rail and May. Subsidiary GTLK Europe efficient transport with Fitch. Company (GTLK), with 100% water transport and aviation is founded in Dublin. government co-financing. November. GTLK Global Business, of shares owned by the federal equipment. July. GTLK successfully places an international platform for government. October. GTLK is assigned a debut issue of Eurobonds. developing non-resource exports, a long-term credit rating is established. by S&P. November. The Company launches a program to develop leasing of Russian helicopters and a project to localize production November. Subsidiary GTLK Asia of L-410 aircraft in Russia. is registered in Hong Kong. 2001 CJSC Civil Aviation Leasing Company is founded 4 5 01 02 03 04 05 06 Annual Report GTLK GTLK Strategic Sustainable Corporate Financial 2020 today profile report development governance results 2020 The Company delivers all vehicles planned for 2020 under the Safe and The Company completes deliveries High Quality Roads national project. under the SSJ100 leasing program with the handover of two aircraft GTLK carries out three projects to airline Red Wings. with Russian Post under the Digital GTLK Asia becomes ACRA affirms GTLK’s credit Economy program. a lessor to Lion Air. Fitch affirms GTLK’s rating at “A+(RU)”. GTLK places its longest Eurobond credit rating at “BB+”. issue, maturing in February 2028. The Russian government approves At the commission of GTLK, GTLK reaches an agreement a roadmap to modernize the construction begins on the first GTLK is included in the list with VEB.RF on joint GTLK named best Eurobond issuer structure of development institutions LNG-fuelled passenger ship of systemic organizations participation in the reform from Russia, the CIS and former CIS under which GTLK will acquire VEB- in Russia, the Chaika. of the Russian economy. of public transport in Perm. countries. Leasing assets. February April June October December January March May September November GTLK becomes the executor Construction of a series GTLK PLACES ITS of measures to update ground of 11 bulk carriers is completed LARGEST EUROBOND public passenger transport at the Krasnoye Sormovo ТОP-5 ISSUE, TOTALING ТОP-15 under the Safe and High Quality shipyard as part of the water GTLK BECOMES ONE GTLK JOINS Roads national project. transport leasing program. OF THE WORLD’S TOP-5 THE TOP-15 $600 LESSORS OF REGIONAL RUSSIAN ISSUERS MLN AIRCRAFT February. GTLK is ranked the largest Russian lessor of aircraft by Cirium. 2021 March. GTLK assets to IFRS grow Events after the to 981 billion rubles in 2020. reporting period 6 7 01 02 03 04 05 06 Annual Report GTLK GTLK Strategic Sustainable Corporate Financial 2020 today profile report development governance results GRI 102-14 Dear colleagues and partners! Russia’s transport sector faced transport on preferential terms. The first GTLK invested a total of 1.1 trillion rubles unprecedented challenges in 2020. year of the project’s implementation in Russia’s transport sector in the period from Lockdowns disrupted logistics chains and demonstrated that it is sorely needed 2009 through 2020, raising more than 9 rubles the stable operation of transport, putting and has strong potential. The Company from extra-budgetary sources for ever ruble the market in a difficult position. GTLK, delivered 691 environmentally friendly of government budget resources. as an effective instrument for achieving buses, trolleys and trams to 14 urban These impressive figures indicate that national objectives, made a considerable areas. the Company has potential for further contribution to the sector’s resilience. GTLK, with the support of the Transport growth. In 2020, GTLK was included in the Vitaly Savelyev The Company reduced the debt burden Ministry, continued to implement ten list of systemic organizations of the Russian on customers and provided orders for programs with government co-financing economy, and confirmed its importance Chairman, JSC GTLK Russian equipment manufacturers. in 2020. They included leasing of airplanes as a development institution. I am confident In a situation where private businesses and helicopters, energy efficient transport, that the professionalism of GTLK’s team will postponed investment plans until better vessels, road equipment and digital enable the Company to flourish and continue times, GTLK provided work for domestic assets. The Company participated in two to be an effective instrument for achieving factories. The Company’s operations other national
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