6 Our History1 Key milestones Carriage Integrated mobility operator provider 2010 2012 2014 FPC was included FPC was awarded Credit ratings in the Register with the Company were assigned of Natural of the Year 2012 to FPC Monopolies. National Award by leading by RosBusinessConsulting rating agencies. (RBC) information agency. 10 2011 20 201 2 2 01 2011 3 2013 Company FPC was officially 2 Profile admitted FPC was granted 0 to the international the observer status 1 Development Organisation at the OSJD, enabling Strategy 4 for Cooperation the representation of Railways of the Company’s interests Performance Overview (OSJD) and was at meetings of OSJD’s working made a member bodies, which reinforced Corporate of the International the Company’s position Governance Union of Railways in the international transport (UIC). market. Sustainable 1 Development In December 2009, PC FPC was established; in November 2014, the name of PC FPC was changed to JSC FPC Appendices Annual Report 2019 7 2015 2016 2018 FPC won the Best Loyalty FPC won the Best FPC won an award for promoting Programme by a Transport Employer for Young corporate volunteering, granted Company category People 2016 award by the Volunteer Centres at the national loyalty in the Reliable Association at the International marketing competition, Partnerships category. Volunteer Forum. Loyalty Awards Russia 2015. The Year of the Passenger FPC successfully passed a QMS A double-decker train Programme was successfully inspection for compliance seating 1,320 from Moscow implemented: in 2016, with GOST R ISO 9001-2015 to Voronezh was introduced FPC reversed its declining (Quality Management into the Russian Book passenger rates Systems – Requirements). of Records as “the year-round for the first time in five scheduled long-distance train years, achieving a growth with the most passenger seats”. of 4%. 018 201 7 2 9 01 2 2019 6 The corporate quality 1 2017 management system 0 of FPC JSC has been 2 FPC won the Moscow successfully certified government’s Best for compliance Employer for Young with the requirements 5 People 2017 award of the international 1 for Efficient Fulfilment standard of Student Team ISO 9001:2015 0 Potential. “Quality management 2 Systems. Requirements”. JSC FPC 8 State and restructuring 2010 2012 Restructuring Cooperative agreements of long-distance rail were signed passenger services with the governments was completed of the Republic of Karelia, under Stage III the Komi Republic, of the Railway and the Republic Restructuring Programme. of Ingushetia. 4 2 1 0 20 10 3 2011 2 201 201 2014 Third-class open sleeping and fourth-class seating carriage 2011 2013 fares were reduced following a resolution by the Federal Tariff Regulatory The Plan to Develop Service (FTS of Russia). and legal framework and Implement a Mechanism for calculating for Long-Term Subsidising In accordance with Resolutions revenue shortfall of Long-Distance Rail of the Russian Government was finalised. Passenger Transport No. 1223 dated 19 November was approved by instruction 2014 and No. 1044 dated of the Russian Deputy Prime 11 October 2014, FPC was Minister Arkady Dvorkovich. 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. Company Profile Development Strategy Performance Overview Corporate Governance Sustainable Development Appendices Annual Report 2019 9 2018 A federal law allowing carriers 2016 to sell non-refundable tickets was adopted The Federal Antimonopoly on 18 April Service (FAS) of Russia 2018 with effect agreed to reduce from 1 January 2019. infrastructure tariffs 2015 for higher-speed The Russian trains travelling at 91 Government to 140 km/h. resolved to reduce the VAT rate 019 from 18% to 10% 2 for long-distance 18 rail passenger 0 services between 2 1 January 2016 7 and 31 December 1 2019 2017. 0 Resolution of the Russian 2 Government No. 545 dated 2017 30 April 2019 permitted travelling 6 with newborns on long-distance trains 1 The VAT rate applicable upon presentation of a medical birth to long-distance rail certificate. 0 passenger services was reduced from 10% Ticket offices, including those of commuter 2 companies, self-service ticket machines, to 0% until 2030. and the Russian Railways website were 5 equipped with cash registers supporting cash and card payments. Payment receipts, along 1 with their fiscal data, can now be uploaded to the customers’ accounts at pass.rzd.ru. 0 Arrangements to launch ticket sales 2 for multimodal routes with destinations in the Kursk Region were timely completed. Tickets issued by Unified Transport Directorate Autonomous Nonprofit Organisation (main service provider) can now be purchased at FPC’s ticket offices and via the Russian Railways website as part of single multimodal tickets connecting rail passenger services with bus services across the Kursk Region. JSC FPC 10 Business development 2015 The high-speed Strizh train made up of Talgo 2013 carriages was launched on the Moscow–Nizhny 2009 A double-decker train was Novgorod route. launched on the Moscow– In December Adler route. A double-decker train made 2009, up of carriages with seats FPC was A co-branded card was was launched between established. launched with Bank VTB 24 Moscow and Voronezh. 2011 (PJSC). Sales of e-tickets Online registration A unified maintenance for multimodal routes was made available facility for double-decker were launched. on all FPC’s domestic rolling stock was launched trains. at the Mineralnye Vody The Cost Optimisation depot. Programme was The Russian Railways implemented, website was modified The procedure bringing to enable mobile sales for e-ticket purchases RUB 15.7 billion 6 2010 of e-tickets for FPC’s and cancellations was in savings. trains. simplified, and the English 1 FPC version of the website commenced 0 A controlling share for ticket purchase was independent of LLC RZD Travel 2 launched. operations. was acquired to expand FPC’s presence The High-Speed Traffic 5 in the rail tourism Improvement Programme 1 market. was implemented. 0 2 4 2 1 01 20 0 20 013 2016 11 2012 2 The new international Strizh train embarked on its first passenger journey from Moscow to Berlin with a travel time of 20 hours – 2012 2014 a 4.5-hour reduction. The draft Development A pilot project Strategy of JSC FPC to 2030 on multimodal transport Booking pattern dates was prepared. was implemented for domestic trains were (Moscow–Valuyki). increased to 60 days. Online registration was made available on all FPC’s domestic FPC fully adopted Trains to resort destinations Company trains. technology for transporting were accelerated. Profile baggage in a dedicated Passengers were provided The Russian Railways website compartment. Development was modified to enable mobile with the option to use bank Strategy sales of e-tickets for FPC’s Lastochka electric trains cards to pay for goods trains. were launched. purchased on board all FPC Performance trains. Overview A controlling share of LLC RZD The Cost Optimisation Travel was acquired to expand Programme was Shower rooms were made Corporate available on 93 trains operated 7 2018 Governance FPC’s presence in the rail implemented, bringing 1 2 by FPC. 0 0 tourism market. RUB 15 billion in savings. 2 1 Sustainable Total effect in 2010–2014 Development reached RUB 39 billion. 9 Appendices Annual Report 2019 11 2017 2018 2019 The draft Development Passenger km JSC FPC’s Development Strategy until 2030 Strategy of JSC FPC and the number was approved. to 2030 was prepared. of passengers carried increased A long-term agreement was signed Over 3 million customers by 6% and 8%, respectively, with JSC Railwaycar Building Works Tver (TVZ) registered to the RZD in 2018 – the largest year- for passenger carriage design, manufacture, Bonus Loyalty Programme on-year increases in FPC’s testing, certification and delivery until 2025. of RZD Holding. history. New-design single-decker twin unit carriages Booking pattern dates A record-high number of the 2019 batch were put in operation; for domestic trains were of passenger carriage the new design provides for semi-automated increased to 90 days. replacements and upgrades customer service on board. was conducted (70% increase The Russian Railways An option to reissue an e-ticket via year-on-year). website launched the Russian Railways website was introduced. sales of e-tickets Over 4 million customers Over 30,000 e-tickets were reissued. for wheelchair users registered with the RZD An option to purchase tickets for FPC’s and their accompanying Bonus Loyalty Programme second-class sleeping carriages and carriages persons. of RZD Holding (35% increase with seats at non-refundable fares was year-on-year). Sales introduced. of e-tickets for trains going Further progress was made An option to cancel e-tickets with online to and from the Kaliningrad on new online passenger registration via the Russian Railways website Region via Lithuania were services such as electronic less than an hour before the train departs launched on the Russian queue management from the point of origin and to claim a refund Railways website. at railway stations, refund online was introduced. notifications through During the FIFA a customer’s account Confederations Cup 2017, Booking windows for certain domestic on the Russian Railways 42 additional trains long-distance trains were extended website, e-ticket booking for 262 journeys were to 120 days. for subsidised categories added to the schedule. of passengers on presenting Dynamic pricing and marketing initiatives Free transport totalling coupons from the Social aimed to boost passenger traffic were 33% of all passenger Insurance Fund. for the first time extended to international seating was provided services within and beyond the CIS and Baltic The Russian Railways website for 52,900 football fans, states.