Letter from the Chairman of the Board of Directors

Dear shareholders,

In spite of difficulties stemming from the ongoing novel coronavirus pandemic, the past year for FESCO has been a successful and productive one. Our business model proved to be resilient and effective: a flexible approach to complex problems, the ability to meet customers’ new demands, and our team’s unity and camaraderie allowed us to commendably overcome all challenges and significantly improve our market position.

All of FESCO’s key financial indicators not only grew faster than the Russian and world economy, but also faster than the total global trade. This demonstrates that the Company’s unique strategy is achieving its potential.

The new structure of FESCO’s share capital demonstrated that it can guarantee stable development, with the newly elected Board of Directors ensuring high-quality strategic management in the interests of all stakeholders.

Thanks to the efforts of the management team led by Arkady Korosteljov, FESCO successfully refinanced its debt to VTB Bank, with regular annual payments until 2027 and changed the currency composition of the debt in favour of roubles. The improvement in operational and financial indicators was noted by Fitch Ratings, which upgraded the Company’s long-term credit rating from CCC to B+ with a stable outlook.

FESCO continues diligently realising its ambitious strategy to become an intermodal transportation leader. The digitalisation of our business also saw significant successes. Thanks to this, our customers can quickly access even the most advanced services.

We have continued with the modernisation of our fixed assets. Our vessel fleet is being expanded, and our containers reached a record number. Russia’s largest port in terms of container handling, VMTP continues to deliver exceptional operating and financial results.

We thank all our partners who believed in us and helped us overcome challenges. We are grateful to our employees whose efforts and engagement guarantee first-class service to our customers across the board. Last but not least, we extend sincere thanks to our customers who have chosen us and trust us with their shipments.

Together we will overcome all the challenges we are facing!