Integration of Russian routes into European tourist space

1. Integration of Russian routes into European tourist space Report Project by M.P. Akulov, CEO JSC"FPK” April 2011

2. RUSSIA Key factors In the Development of Railway Tourism Improving quality of transportation services Expanding the scope of sales for “global prices” Improving customer service Development of rapid transport Expanding the scope and developing the ways of selling tickets Additional foreign languages trainings for the train crews Extending the range of additional services en route Transparency of calculations, adequate results assessment Development and implementation of quality management system in international trains Providing extended transportation services Expanding the range of marketing initiatives Simplification of visa system Creating new products Cooperation with travel agenciesin the promotion of railway transport for integrated tourist packages Active promotion in Russia and abroad 2

3. New Products In International Tourism Railway Transport New train route Moscow-Nice-Moscow, passing through Belarus, Poland, Czech Republic, Austria and Italy. High-speed train “Allegro” from Saint-Petersburg to Helsinki. Travel time is 3,5 hours. It is planned to organize rapid train services Moscow-Berlin and Moscow-Kiev, using new train from“Talgo” company. It is also planned to organize Moscow-Paris connection – with one night travel time. Cooperation in ticket sales 3

4. Train Moscow-Nice: Launching Efficiency TrainNo. 17/18 runs once a week since September 23, 2010 –departing from Moscow on Thursdays, and from Nice on Sundays. The train’s itinerary passes seven countries: Russia, Belarus, Poland, Czech Republic, Austria, Italy, France. Train composition – 12 cars (Moscow-Nice): 3 luxury cars, 2 RC, 1 second-class car, 6 first-class cars. Over 2 thousand people transported, 5% of which were kids 62% of passengers prefer first-class cars France (46%), Italy (26%) and Austria (19%) are of the highest passengers’ demand. 10%of passengers travel using short intra-European routes DISCOUNT! • adult «Single» • child • adult «Senior» • adult «Senior-Single» • «Junior» • «Junior-Single» • group • adult family 26% of all passengers are those using VIP-cars ! ! ! In demand The cars are fully booked on certain dates 4

5. Moscow-Nice: integrated discount system. Special offers. * The price is for one-way ticket per passenger ** The discounts are made on the ticket part of the fare 5

6. Moscow-Nice: Product Promotion Product Promotion Tickets sale in Russia as well as in the countries of Western and Eastern Europe Online sales JSC ”FPK” Expanding cooperation with travel agencies Advertising campaign Travel agency Placing information on leading travel fairs (“World Travel Market” in London, "Rest - 2010", "ITM“ in Moscow) as well as at special events for travel agencies run by Rail Europe in Zurich, Geneva, Barcelona and Cologne. Acceleration of train Moscow Nice 50 hrs 23 min 49 hrs 34 min 44 hrs 30 min 46 hrs 30 min 50 hrs 55 min 51 hrs 55 min 6

7. New Project: Moscow-Paris Train Moscow Brest Berlin Warsaw Frankfort-on-the-Main Paris Frequency: 5 times a week Train scheme: 9 cars Travel time: “one night” Departing from Moscow at 08.00 Arriving to Paris at 20.45 the next day Departing from Paris at 09.00 Arriving to Moscow at 23.50 7

8. High-Speed Service Development On the Russia-Finland Route Share, % From December 12, 2010 The volume of rail transportation on the Russia-Finland route has increased by 1.72 times since 2004 to 2008. Finland 57% 2 pairs of “Allegro” trains 127% 40 38.9 For the first 2 months of 2011 over 38,000 passengers were transported by “Allegro” trains (49% of the population)which exceeded passenger traffic of 2 months in 2010 by 27%, when the“Repin” and “Siberus” trains were used for transportation. “Repin” + “Sibelius” 30.6 30 116% “Allegro” 145% Growth, % 21.9 Thousands of peope 17.0 20 18.9 11.7 10 0 January February 2 months in 2011 Starting May 29, 2011 two new pairs of trains will be put into circulation in addition to already running “Allegro” speed trains 8

9. “Talgo”: Project Effectiveness It is planned to organize two new train routes: Moscow-Berlin and Moscow-Kiev Launching “Talgo” trains will enhance: • Improving transport links between foreign countries and the Russian Federation; • Integrating the Russian railway system in the unified European network of high-speed railway links; • Providing a high level of population mobility with mass transportation of passengers in domestic, interstate and international communications; • Creating a competitive environment in the market of passenger transport services; • Saving fuel and energy resources; • Reducing the affect of transport systems on the environment; • Maintaining and stimulating scientific, technological and intellectual potential of the country through the introduction of new world-class equipment. 9

10. Program For High-Speed Service Development In JSC "RZD" Implemented since 2006 to 2010 Saint-Petersburg – Moscow Moscow – Nizhny Novgorod Saint-Petersburg – Helsinki Looking forward: International Communication Domestic Communication Moscow – Smolensk (Krasnoe) Moscow – Bryansk Moscow – Ryazan – Voronezh Moscow – Kursk Krasnodar – Mineralnye Vody Moscow – Yaroslavl Rostov – Mineralnye Vody (Kislovodsk) Rostov – Krasnodar Samara – Saratov Samara – Penza Samara – Saransk Saratov – Volgograd Novosibirsk – Omsk Novosibirsk – Tomsk Novosibirsk – Novokuznetsk Novosibirsk – Barnaul Novosibirsk – Kemerovo Yekaterinburg – Chelyabinsk Moscow – Helsinki Moscow – Berlin Moscow – Kiev Moscow – Brest Moscow – Minsk Moscow – Warsaw Moscow – Prague Moscow-Kursk-Belgorod-Kharkov-Lozovaya-Rostov-Adler Moscow-Kursk-Belgorod-Kharkov-Simferopol Kiev-Moscow-St .Petersburg-Helsinki Integrating Russian railways into the single European network of high-speed railway links 10

11. Tourist train “Baikal cruise”: trip by the Baikal RoundRailway. Fascinating journey into the past by the Baikal Round Railway on the tourist train “Baikal Cruise”. The interior of cars in “Baikal Cruise” is made in retro style, as well as the train and locomotive crews uniform. The length of the train route (round trip) is 2,5 days. Travel and accommodation is carried out in comfortable luxury and compartment cars. The train has a restaurant car. During the journey tourists will have an interesting excursion program and unforgettable impressions. 11