6 COMPANY PROFILE OUR HISTORY Carriage operator 2010 2011 2012 2013 FPC was included FPC was officially FPC was awarded FPC was granted in the Register admitted with the Company the observer status of Natural Monopolies. to the international of the Year 2012 at the OSJD, enabling Organisation National Award representation for Cooperation by RosBusinessConsulting of the Company’s of Railways (OSJD) (RBC) information agency. interests at meetings and was made a member of OSJD’s working of the International bodies, which reinforced Union of Railways (UIC). the Company’s position in the international transport market. Company Profile Development Strategy Performance Overview Corporate Governance Sustainable Development Appendices Annual Report 2018 7 Integrated mobility provider 2014 2015 2016 2017 2018 Credit ratings FPC won the Best FPC’s 2015 Annual FPC won the Moscow FPC’s 2017 Annual were assigned Loyalty Programme Report won the Best government’s Best Report was awarded to FPC by leading rating by a Transport Company Annual Report by a Non- Employer for Young the second prize in the Best agencies. category at the national Public Company category People 2017 award Presentation of a Business loyalty marketing at the Annual for Efficient Fulfilment Model by a Non-Public FPC’s Annual Report won competition Loyalty Report Competition of Student Team Company at the Annual the Best Presentation Awards Russia 2015. by the Moscow Potential. Report Competition of a Business Model Exchange. by the Moscow Exchange. by a Non-Public Company A double-decker category at the Annual train seating 1,320 FPC won the Best FPC’s 2017 Annual Report Report Competition from Moscow Employer for Young was also shortlisted by the Moscow to Voronezh was People 2016 award for the Best Annual Report Exchange. enteredi into the Russian in the Reliable by a Non-Public Company. Book of Records Partnerships category. as “the year-round FPC won an award scheduled long-distance The Year of the Passenger for promoting corporate train with the most Programme was volunteering, granted passenger seats”. successfully implemented: by the Volunteer in 2016, FPC reversed Centres Association FPC’s Annual Report won its declining passenger at the International the Best Presentation rates for the first time Volunteer Forum. of a Business Model in five years, achieving by a Non-Public Company a growth of 4%. FPC successfully passed category for the second a QMS inspection time at the Annual for compliance with GOST Report Competition R ISO 9001-2015 (Quality by the Moscow Management Systems – Exchange. Requirements). JSC Federal Passenger Company 8 STATE AND RESTRUCTURING 2010 2011 2012 2013 Restructuring of long- Regulatory Cooperative agreements The Plan distance rail passenger and legal framework were signed to Develop and Implement services was completed for calculating revenue with the governments a Mechanism under Stage III shortfall was finalised. of the Republic of Karelia, for Long-Term Subsidising of the Railway the Komi Republic, of Long-Distance Rail Restructuring Programme. and the Republic Passenger Transport was of Ingushetia. approved by instruction of the Russian Deputy Prime Minister Arkady Dvorkovich. Company Profile Development Strategy Performance Overview Corporate Governance Sustainable Development Appendices Annual Report 2018 9 2014 2015 2016 2017 2018 Third-class open The Russian Government The Russian Government The draft Development A federal law allowing sleeping and fourth- resolved to reduce resolved to reduce Strategy of JSC FPC carriers to sell non- class seating carriage the VAT rate from 18% the VAT rate for long- to 2030 was prepared. refundable tickets was fares were reduced to 10% for long-distance distance rail passenger adopted on 18 April following a resolution rail passenger services services from 10% to 0% The VAT rate applicable 2018 with effect by the Federal Tariff between 1 January 2016 between 2017 and 2030. to long-distance rail from 1 January 2019. Service (FTS of Russia). and 31 December 2017. passenger services was The Federal reduced from 10% to 0% In accordance Antimonopoly Service until 2030. with Resolutions (FAS) of Russia agreed of the Russian to reduce infrastructure Government No. 1223 tariffs for higher-speed dated 19 November trains travelling at 91 2014 and No. 1044 dated to 140 km/h. 11 October 2014, FPC was entitled to subsidies covering part of its interest expenses under loans granted to purchase rolling stock (double-decker carriages) and included as a beneficiary of the Programme to Support Investment Projects in Russia Based on Project Financing Arrangements. JSC Federal Passenger Company 10 BUSINESS DEVELOPMENT 2010 2011 2012 2013 FPC commenced Online registration was The Development A double-decker independent operations. made available on all Strategy of JSC FPC train was launched FPC’s domestic trains. to 2030 was approved. on the Moscow–Adler route. The Russian Railways Ticket sales on credit website was modified were launched. A co-branded card was to enable mobile sales launched with Bank of e-tickets for FPC’s Technology for including VTB 24 (PJSC). trains. trains in the general turnaround schedule was A unified maintenance A controlling share expanded. facility for double- of LLC RZD Travel was decker rolling stock acquired to expand FPC’s FPC-Logistics, a logistics was launched presence in the rail subsidiary focused at the Mineralnye Vody travel market. on unaccompanied depot. baggage and mail transport, was The procedure established. for e-ticket purchases and cancellations The Revenue was simplified, Management System and the English version and RZD Bonus Loyalty of the website for ticket Programme were purchase was launched. launched. The High-Speed Traffic Car transporters were Improvement Programme put into service. was implemented. Company Profile Development Strategy Performance Overview Corporate Governance Sustainable Development Appendices Annual Report 2018 11 2014 2015 2016 2017 2018 A pilot project The high-speed Strizh The new international Over 3 million customers Passenger km on multimodal transport train made up of Talgo Strizh train embarked registered with the RZD and the number was implemented carriages was launched on its first passenger Bonus Loyalty Programme of passengers carried (Moscow–Valuyki). on the Moscow–Nizhny journey from Moscow of RZD Holding. increased by 6% and 8%, Novgorod route. to Berlin with a travel respectively, in 2018 – FPC fully adopted time of 20 hours – Booking windows the largest year-on-year technology A double-decker train a 4.5-hour reduction. for domestic trains were increases in FPC’s history. for transporting made up of carriages increased to 90 days. baggage in a dedicated with seats was launched Booking windows A record high number compartment. between Moscow for domestic trains were The Russian Railways of passenger carriage and Voronezh. increased to 60 days. website launched replacements Lastochka electric trains sales of e-tickets and upgrades was were launched. Sales of e-tickets Trains to resort for wheelchair users conducted (a 70% increase for multimodal routes destinations were and their accompanying year-on-year). The Cost Optimisation were launched. accelerated. persons. Programme was Over 4 million implemented, bringing The Cost Optimisation Passengers were Sales of e-tickets customers registered RUB 15 billion Programme was provided the option for trains going with the RZD Bonus in savings. Total effect implemented, bringing to use bank cards to pay to and from the Kaliningrad Loyalty Programme in 2010–2014 reached RUB 15.7 billion for goods purchased Region via Lithuania were of RZD Holding (a 35% RUB 39 billion. in savings. on board all FPC trains. launched on the Russian increase year-on-year). Railways website. Shower rooms were Further progress was made available During the FIFA made on new online on 93 trains operated Confederations Cup passenger services by FPC. 2017, 42 additional trains such as electronic for 262 journeys were queue management added to the schedule. at railway stations, refund notifications through Free transport totalling a customer’s personal 33% of all passenger account on the Russian seating was provided Railways website, e-ticket for 52,900 football fans, booking for subsidised and additional stops were categories of passengers introduced at Vladimir on presenting coupons and Tver. from the Social Insurance Fund. FPC conducted its first Net Promoter Score (NPS) The Russian Railways survey, with an overall website was modified score registered at 4.1 to enable the sale on a five-point scale. of electronic carriage documents for baggage, pets, and hand luggage on FPC’s trains. During the 2018 FIFA World Cup Russia, free transport was provided for 318,900 football fans, with 734 journeys run by free trains across 31 routes. JSC Federal Passenger Company.