Information about subsidiaries and affiliates
The following subsidiaries and affiliates are covered by FPC’s corporate governance system: LLC NTS, LLC Travel-Tour, LLC Russian Railway Tours, LLC RTK, JSC TransmobilnostJSC FPC-Logistika was renamed JSC Transmobilnost on 22 April 2019., and LLC IM.
FPC’s organisational structure
LLC NTS operates in the following areas directions:
- Delivering drinks, food, and non-food products to FPC’s trains for sale to passengers via train attendants and independent operators on board
- Catering to passengers in bistros on the Strizh trains running to and from Moscow
- Small- and large-scale wholesale trade in beverages and food products from warehouses leased by LLC NTS to any company selling such goods in Russia
- Operating dining carriages
- Complimentary catering services for passengers
In 2019, sales volumes across almost all channels were up 48% year-on-year.
The most significant growth is seen in catering services due to an increase in the number of branches and trains with dining carriages operated by NTS in 2019. NTS also began providing services on the Strizh trains running to and from Moscow in Q3 2019.
|Net profit, RUB million||65.5||32.5||–33.0||49.6|
|Sales of merchandise to passengers (via train attendants)||969.8||961.5||–8.3||99.1|
|CateringNTS provides catering services from Q2 2018.||448.3||1 089.6||641.3||243.1|
|Sale of services on Strizh trains||–||96.5||96.5||–|
Travel Tour Group
FPC bought into the Travel Tour Group’s business to:
- develop rail tourism by building up new tourist-oriented rail routes
- increase the volume of rail services provided to organised passenger groups
- develop the middle-class rail travel segment
- meet foreign and domestic demand for visiting Russia’s cultural and historical centres.
LLC Travel-Tour provides legal services to its subsidiary LLC Russian Railway Tours and conducts virtually no other kinds of business. Financial and business operations of LLC Russian Railway Tours are LLC Travel-Tour’s key source of profit.
LLC Russian Railway Tours
LLC Russian Railway Tours’ key activities include:
- organising own rail tours
- hosting rail services, chartered VIP rail services, and tourist travel services for RZD Holding employees
- servicing tourist groups organised by travel agencies as well as corporate customers in rented trailing carriages or special trains.
The Company serviced over 280,000 passengers in 2019, up 8.5% year-on-year, with the most significant growth coming from the Rail Services business segment due to an increase in children and shift worker transportation services. These types of services are least profitable for the Company due to low pricing of trips. The number of passengers serviced in the Tourism and Comprehensive Services segments with higher trip pricing decreased.
The lower sales in the high-margin segments had a negative impact on Russian Railway Tours’ bottom line in 2019, as its gross profit did not cover administrative expenses, which resulted in a loss of RUB 34.7 million in 2019.
|Net profit, RUB million||44.9||(34.7)||–79.6||–77.2|
JSC Transmobilnost was established to improve the competitiveness of unaccompanied baggage transport services within FPC Group, achieve profitability in the segment, and regain FPC’s leading position in the unaccompanied baggage transport market.
Core activities of JSC Transmobilnost:
- Providing carload services using baggage carriages
- Leasing baggage carriages.
In 2019, the number of carloads shipped by Transmobilnost grew by 20.6% year-on-year, as its operating fleet increased by 42 carriages, with 35 carriages contributed by FPC under an asset contribution agreement between FPC and Transmobilnost and the remaining rolling stock additions coming from carriage overhauls with reclassification from “carriages withdrawn from operation” to “carriages in operation”.
|Net profit, RUB million||45.1||85.9||40.8||190.5|
|Number of carloads shipped||1,645||1,984||339||20.6|
|Operating fleet, carriages Including operated and leased carriages.||123||165||42||34.1|
LLC IM (a subsidiary of JSC FPC-Logistics) acts as the operator for the Innovative Mobility multimodal platform providing a single interface to offer passengers tools for planning, booking, and purchasing tickets for trips involving various modes of transport, as well as related value-added services. The multimodal platform integrates all modes of transport into a single network offering passengers door-to-door travel experience.
The number of tickets issued in 2019 grew by 5,070.7 thousand year-on-year as a result of the Company’s efforts to grow its presence in the agency services market and increase sales not only in the railway segment but also in air travel, coach services, Aeroexpress, and insurance segments.
|Number of e-tickets sold, ’000 tickets||16,049.9||21,120.6||5,070.7||131.6|