General Director’s Address

Dear Shareholders, Partners and Colleagues!

Our Company is Russia’s national carrier and provides long-distance rail passenger services; the Company has been an independent business entity of Russian Railways Holding since 2010. Over the past five years, we have continued to follow our core principle — customer focus, allowing us to continually improve our services and expand the range of services we provide.

In 2014, the Company once again confirmed its status as a reliable, competitive carrier on the transport services market and continued its progress forward. The successful completion of the Company’s key projects is first and foremost owing to the input of nearly 74,000 Company employees.

The Sochi 2014 Winter Olympics was one of the country’s most important events last year. The Company actively participated in the Olympic torch relay as well as in the transportation of guests and athletes to the Games: over 608,000 passengers travelled on Sochi routes on JSC FPC trains during the period that the Olympic train timetables and scheduling were in operation. We are proud to have been a part of this major historic event.

The Company’s key objectives include improving business efficiency and providing a high-quality response to customers’ expectations. It is pleasing to note that JSC FPC passenger satisfaction ratings are improving every year, last year scoring 4.5 out of a possible 5.

A number of marketing campaigns and promotions were run over the past year to enhance passenger demand and the RZD Bonus loyalty scheme, launched in 2012, received further impetus. The number of people benefitting from the loyalty programme topped a million in Q1 2015, highlighting the scheme’s popularity and demand with passengers.

On December 01, 2014, we launched a new range of services — multi-modal transport on Moscow- Stariy Oskol — Valuyki route. Passengers travel by train from Moscow to Stariy Oskol and then on from Stariy Oskol by bus. Tickets for the bus and train can be purchased at the ticket office at the same time. We envisage extensive possibilities for the development of our multi-modal transport services: these services will allow the Company to expand its routes network, to adapt the timetable to more conveniently connect with other transport routes and to improve the quality of service for passengers when buying tickets. Ultimately, this will considerably enhance public mobility. We intend to offer passengers new multi-modal routes starting from Q2 2015.

Last year, the Company continued to improve the quality of its services: new comfortable RIC carriages were incorporated into international train services and on domestic routes, new technology for transporting passengers’ luggage in a separate compartment was successfully introduced, and vehicle transportation services using custom-made vehicle and car carriages, were considerably improved.

The Company’s day train route network expanded and now includes the high-speed Lastochka trains; year-end results indicate that passenger journeys in this segment were up by 57%. The Daily Express scheme was developed and launched, providing for the further expansion of the Company’s day routes and a gradual reduction in journey time.

The Company will continue to focus on future projects in 2015 and to improve the appeal of its passenger services, through the introduction of new technology and the use of innovative rolling stock — double deckers produced by Tver Carriage Works and the high-speed Strizh trains, produced by the company Patentes Talgo S.L. — this will undoubtedly improve the Company’s quality of services.

The swift development of information and communications technology and the move away from working with large customer segments to working with each individual customer is currently an important trend in the passenger transport market and should not be ignored. These factors are giving rise to the development of ‘innovative mobility’, which is also now one of JSC FPC’s key development vectors. In 2015, we anticipate that every third travel document will be processed electronically, as a result of the Company’s continued development of its electronic communications channels.

Last year, intrinsic factors caused a decline in consumer activity in virtually all areas of business and it also affected rail passenger transport services. As a result, the Company introduced a series of measures to enhance the Company’s business operations and to implement planned projects, aimed at improving the Company’s appeal with regard to its range of services. We have set ourselves ambitious goals for 2015, which will enable us to improve the comfort and accessiblity of services for our passengers and we have developed the infrastructure to ensure their implementation. Each year the Company is increasing its rate of growth, striving today to transform the future in which we will have to work tomorrow.

Mikhail P. Akulov