Financial Results

Income

Revenue from passenger service

In the regulated segment, passenger service by third‑class open‑plan sleeping carriages and fourth‑class seating carriages in 2024 generated RUB 137.6 billion, up 15.1% year‑on‑year.

Revenues from the carriage of baggage, unaccompanied baggage, and mail totalled RUB 8.8 billion (107.1% vs. 2023).

The revenue growth trend may be noted in both segments, regulated and deregulated, but the deregulated segment remains ahead of the regulated one (122.1% vs. 2023): in 2024, revenue from the carriage of passengers in first‑ and second‑class sleeping carriages through domestic traffic totalled RUB 173.5 billion (122.7% vs. 2023), while revenue from international traffic exceeded RUB 10.6 billion (113.2% vs. 2023).

Other operating income

Other activities of JSC FPC include:

• Repair of clients’ rolling stock
• Value‑added services on trains
• Lease of movable and immovable property
• Other services

The drivers behind the year‑on‑year growth:

• In terms of additional services on trains (+23.5% year‑on‑year) – due to an increase in the amount of passengers served by JSC FPC's own trains and annual tariff indexation
• In terms of other services (19.2%) – mainly due to the expansion of the range of goods and alcoholic beverages sold, a growth of the sale of supplementary meals to passengers, and an increase in the sale of scrap metal
• In terms of repair and maintenance of customers' rolling stock (9.4%) – due to additional requests for maintenance and overhaul of carriages

Expenses

Transportation expenses

Based on the results of 2024, expenses on transportation activities totalled RUB 306.9 billion, or 117.4% vs. 2023 (142.2 % vs. 2022).

The prime cost of passenger service in 2024 was RUB 32.0 per 10 passenger‑km, or 112.0% vs. 2023 (120.5% vs. 2022).

Other operating expenses

As of year‑end 2024, expenses from other activities totalled RUB 29.0 billion, which is 17.9% higher than in 2023.

The drivers behind the year‑on‑year growth:

• In terms of additional services on trains (+25.4%) – due to an increase in the amount of passengers served by JSC FPC's own trains
• In terms of other services (+14.0%) – mainly due to the expansion of the range of goods and alcoholic beverages sold and a growth of the sale of supplementary meals to passengers
• In terms of repair and maintenance of customers' rolling stock (+15.9%) – due to additional requests for maintenance and overhaul of carriages, as well as an increase in overhead costs allocated to other activities

Overhauls programme

As of year-end 2024, actual expenses on overhauls of fixed assets were RUB 4.2 billion, or 125.6% year‑on‑year, including:

• RUB 3.4 billion – overhaul of passenger carriages (133.6% year‑on‑year)
• RUB 0.8 billion – third‑party overhaul of buildings, structures and equipment (101.2% year‑on‑year)

Headcount and labour productivity

Labour productivity grew by 6.0% compared to 2023, due to a 4.7% increase in traffic volumes while the number of employees decreased by 1.2%.

MED 5Hereinafter, MED means the indicator of the guidelines for the preparation of sustainability reporting approved by Order No. 764 of the Ministry of Economic Development of the Russian Federation dated 1 November 2023.

Other revenue and expenses

The financial result from other revenue and expenses in 2024 is negative, with a loss of RUB 4.6 billion, which is RUB 1.9 billion higher than in 2023.

Key revenues received as part of other JSC FPC’s other income were government subsidies allocated as compensation for the revenue shortfall caused by the government regulation of long‑distance tariffs for third‑class open‑plan sleeping and fourth‑class seating carriages. In 2024, RUB 7.1 billion in subsidies were received from the federal budget (RUB 8.4 billion in 2022).

The main item in the structure of other expenses is expenses for loan interests: RUB 6.0 billion in 2024 and RUB 5.3 billion in 2023.

Debt policy

As at 31 December 2024, principal repayments were RUB 48.5 billion, including RUB 33.0 billion – for loans and RUB 15.5 billion – for bonds.

There are no liabilities denominated in foreign currencies.

As of year‑end 2024, the covenants did not exceed the maximum values.

The value of the Net debt / EBITDA covenant (for the last 12 months before the reporting date) was 0.7x, that of EBITDA / net interest expenses (for the last 12 months before the reporting date) was 15.3x.

Balance sheet total

Balance sheet total for 2024 increased by RUB 48 billion, or 12%.

As at 31 December 2024, JSC FPC’s non‑current liabilities totalled RUB 46.9 billion, including RUB 43.0 billion of loans and borrowings.

The size of the Company's authorised capital was RUB 263,588,839 thousand as at 31 December 2024.

Inventory holdings

As at 31 December 2024, JSC FPC's actual inventory content, excluding inventories not used in the production process, amounted to RUB 9.516 billion, including new materials and fuel (RUB 6.555 billion) and reusable materials (RUB 2.961 billion).

Spare parts of passenger carriages account for the largest part of the production inventory in the amount of RUB 4.792 billion (50% of the total production inventory), including wheel sets of passenger carriages in the amount of RUB 2.291 billion.

In 2024, the structure of wheel sets inventories changed towards an increase in the share of up‑to‑date models, including those with disc brakes. There is also an increase in the stock of new wheel sets, including due to the launch of in‑house production of wheel sets by JSC FPC's facilities in 2024.

Receivables and payables

As at 31 December 2024, the receivables totalled RUB 28.26 billion.

Trade receivables (except for rail service) accounted for 28.8%, or RUB 8.13 billion, of total receivables. The bulk of this debt, RUB 6.12 billion, resulted from the application of the terms of settlements stipulated by the long‑term agreement.

Taxes, fees and charges receivable accounted for 54.1%, or RUB 15.29 billion.

The largest share of trade receivables (except for rail service) was for sale of property – 75.3%, or RUB 6.12 billion, and for leasing of rolling stock – 7.9%, or RUB 0.64 billion.

Trade receivables due for passenger service amounted to 8.7%, or RUB 2.46 billion, which is in line with the terms of relevant agreements made.

Advances issued as of the end of December 2024 totalled 4.1%, or RUB 1.17 billion

Payables as at the end of December 2024 were RUB 55.95 billion, up 16.1% year‑on‑year. The largest share of debt is attributable to debts to suppliers and contractors: 46.7%, or RUB 26.11 billion, and advances received for transportation: 33.8%, or RUB 18.91 billion

As payables are above receivables, the Company can use payables as an additional source of financing. Receivables to payables ratio is 1.98.

Cash flowsIn accordance with the management accounting data.

Cash balance on accounts of JSC FPC, including short‑term deposits, as at 1 January 2024 stood at RUB 9.4 billion.

Cash flows from operations

In 2024, the cash flow from operating activities totalled RUB 466.8 billion, including RUB 7.1 billion of federal subsidies. Most of money (72%) was received from passenger service, totalling RUB 334.9 billion excluding transit charges.

Operating expenses amounted to RUB 393.7 billion, including expenses for infrastructure services and locomotive lease totalling RUB 190.8 billion, or 49%.

Cash flows from investing activities

In the reporting period, RUB 75.5 billion were allocated for passenger rolling stock replacement and upgrades:

• RUB 55.9 billion for the acquisition of new passenger carriages
• RUB 19.6 billion for passenger rolling stock upgrades

Negative cash flow from investing activities amounted to RUB 80.4 billion

Financing cash flows

Cash outflow of RUB 25.8 billion resulted from:

• Interest payments on loans and borrowings – RUB 6.0 billion
• Repayment of loans and borrowings – RUB 19.0 billion

Net cash flows from financing activities totalled RUB 0.2 billion

JSC FPC’s total negative cash flow for the reporting year was RUB 7.0 billion.

The cash balance including short‑term deposits on the accounts of JSC FPC as at 31 December 2024 amounted to RUB 2.4 billion

Financial review

The net value of JSC FPC's assets as at 31 December 2024 was RUB 311.0 billion and exceeds the authorised capital (RUB 286.9 billion as at 31 December 2023). This proves the compliance with the mandatory provisions of Federal Law No. 208‑FZ dated 26 December 1995 “On Joint Stock Companies” concerning the net asset value of the Company.

Report on net profit use

In accordance with the decision of the Annual General Meeting of Shareholders dated 28 June 2023 (Minutes No. 58 dated 3 July 2024), the net profit for 2023 was decided to be distributed as follows.

At the end of the financial year, the Annual General Meeting of Shareholders, in accordance with the recommendation of the Board of Directors of JSC FPC, shall decide on the distribution of the Company's net profit.