Annual Report
& Accounts 2020

Highlights of 2020

+2.2% year-on-year increase in Freight Rail Turnover
45% Gondola Empty Run Ratio (2019: 42%)
64% Share of Net Revenue from
Operation of Rolling Stock
contributed by service contracts
RUB26.8bln Adjusted EBITDA (down 32% y-o-y)
RUB15.1bln Free Cash Flow (up 14% y-o-y)
1.01x Net Debt to Adjusted EBITDA (2019 end: 0.60x)
RUB74.55% per share/GDR Combined 2020 interim
and final dividends

Highlights of 2020

Industry outperformance and robust client retention

  • Globaltrans’ Freight Rail Turnover rose 2.2% year on year in contrast to market decline, supported by powerful operating model enabling efficient switching between cargo groups.
  • Service contracts portfolio successfully extended (Rosneft, MMK, Metalloinvest), new one-year contract concluded with EVRAZ.
  • Gondola Empty Run Ratio rose to 45% (2019: 42%) but remained one of the lowest in the Russian market despite the substantial volatility in client cargo flows and routes driven by unprecedented COVID-19 lockdowns.

Efficient cost control, increased Free Cash Flow and continued low leverage

  • Adjusted EBITDA at RUB 26.8 billion
    (–32% year on year) largely driven by weakness in gondola segment pricing.
  • Total Operating Cash Costs were reduced 1% year on year due to cost optimisation measures.
  • 14% year-on-year increase in Free Cash Flow to RUB 15.1 billion supported by flexible expansion CAPEX (–83% year on year).
  • Low leverage with Net Debt to Adjusted EBITDA at 1.01x (2019 end: 0.60x).

Strong 2020 dividends delivered as targeted, H1 2021 dividend target set

  • As targeted, strong total 2020 dividends of RUB 13.3 billion or RUB 74.55 per share/GDR delivered (including interim and final dividends). Total 2020 dividends equate to 99% of the Group’s Attributable Free Cash Flow for 2020.
  • Interim 2021 dividends of a minimum of RUB 3.0 billion or about RUB 16.78 per share/GDR targeted reflecting conservative financial policies and ongoing pricing pressure in gondola segment.

Consistent focus on shareholder value creation

  • Secondary listing on Moscow Exchange undertaken in October 2020 driving almost three-fold rise in combined liquidity on London Stock Exchange and Moscow Exchange.
  • Share buyback programme (for up to 5% of the share capital) is on track providing ongoing support during market volatility.

Chairman's Statement

Dear Shareholders,

2020 was, by any definition, an  exceptionally challenging year. We have long experience of successfully navigating through tough markets, and last year was no exception.

We again outperformed the industry, extended important service contracts, generated strong Free Cash Flow, and despite the unprecedented conditions delivered strong dividends as targeted and previously announced. Throughout this unprecedented period, the Group was sustained by the quality of its management, the resilience of its business model, and the strength of its people.

Inevitably, the abrupt changes in the trading environment as a result of the COVID-19 pandemic impacted our financial results. Nevertheless, it is reassuring that the Group was still able to deliver strong Free Cash Flow (up 14% year on year) and dividends in line with expectations by controlling costs and flexing expansion CAPEX. The Group's performance in a challenging year speaks to the underlying robustness of the business.

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Sergey Maltsev

Chief Strategy Officer
Co-founder and shareholder

CEO Review

Dear Shareholders,

The spread of the COVID-19 virus disrupted economic acitivity across Russia. Our industry did not escapte the impact of this although it was very much a year of two halves for freight rail transportation.

In the first half of 2020, demand slumped as the sector suffered the full economic impact of COVID-19; in the second half, our markets recovered and overall frieght rail turnover returned to the pre-COVID levels.

Globaltrans again delivered a resilient business performance even at this exceptionally challenging time. We out performed the market in freight rail turnover, secured further new contracts and extensions of existing contracts, and invested in the growing specialised container transportation segment. Although our financial results were inevitably impacted by the weak market conditions, our focus on cost control and expansion CAPEX flexibility resulted in the Group delivering increased Free Cash Flow and solid dividends for shareholders as targeted and announced beforehand.

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Valery Shpakov

Chief Executive Officer

Who we are and what we do

Robust business model and efficient operations

  • Strong positions in key freight rail segments of metals and oil products and oil
  • Diversified blue-chip customer portfolio, underpinned by long-term service agreements
  • Industry-leading operational efficiency
  • Founded and led by entrepreneurs with a focus on quality and innovation
  • Well-invested, diversified fleet assets


  • Compliance with best-practice governance standards
  • Dual-listed on LSE and MOEX
  • Sustainable business with a strong ESG focus
  • Experienced Board and management team

Strong Free Cash Flow generation and robust financial profile

  • Revenues underpinned by multi-year outsourcing contracts
  • Efficient cost control
  • Strong Free Cash Flow generation supported by fully discretionary expansion CAPEX
  • Conservative balance sheet

Attractive dividend returns to shareholders

  • Track record of consistent dividends and meeting dividend guidance
  • Semi-annual dividend payments
  • Clear dividend policy that distributes excess cash not used for expansion as dividends, subject to Leverage Ratio

Our Industry


largest rail network links the world’s largest country across 11 time zones

87% of all Russian freight turnover excluding pipeline traffic
2.5tn overall freight rail turnover in 2020 (tonnes-km)
Sustainable choice: most eco-friendly means of long-distance freight transportation
Vibrant deregulated
freight rail sector
~88% of total Russia's railcar fleet is controled by private players
Long-term structural growth drivers backed by government rail infrastructure investment into extension of the Far East railway corridor

Financial and Operational Review

“Our financial performance highlights the strength of our operating model. The Group continued to be highly cash generative and financially robust. We delivered a double-digit increase in free cash flow, maintained low leverage and as a result, we delivered strong cash dividends to our shareholders, consistent with our focus on long-term value creation.”


Continued robust dividend payments as targeted and previously announced
Strong total FY2020 dividends of RUB 13.3 billion or RUB 74.55 per share/GDR delivered (including interim and final dividends), reflecting strong Free Cash Flow generation and low leverage. Total FY2020 dividends equate to 99% of the Group’s Attributable Free Cash Flow for 2020.


Chief Financial Officer

Financial and Operational Review

Financial Results

Efficient cost control, increased Free Cash Flow and continued low leverage

  • Total revenue was down 28% year on year to RUB 68.4 billion. Adjusted Revenue declined 20% year on year to RUB 54.9 billion with lower gondola segment net revenues partially offset by a less volatile tank car segment and growing revenues from specialised containers and railcar leasing businesses.
  • Total Operating Cash Costs were reduced 1% year on year due to cost optimisation measures. Operating profit decreased 41% year on year to RUB 18.8 billion largely due to gondola segment pricing weakness.
  • Adjusted EBITDA was 32% lower year on year at 26.8 billion while the Adjusted EBITDA Margin narrowed to 49% (2019: 57%).
  • Profit for the year declined 46% year on year to RUB 12.2 billion.
  • Free Cash Flow increased 14% year on year to RUB 15.1 billion with the decline in Net cash from operating activities more than offset by an 83% year-on-year targeted cut in expansion CAPEX, release of working capital and lower Tax paid.
  • Total CAPEX was down 49% to RUB 6.9 billion and primarily consisted of maintenance expenses.
  • The Group currently expects its Total CAPEX (including maintenance) to remain low in 2021 in the range of RUB 6–7 billion.
  • Leverage continued to be held at a low level with a Net Debt to Adjusted EBITDA ratio of 1.01x at year end 2020 (at year-end 2019: 0.60x).

Financial and Operational Review


Globaltrans outperformed the industry despite weak markets

  • Solid Freight Rail Turnover growth achieved in 2020 of 2.2% year on year even as the overall market declined 2.2% year on year.
  • Gondola operating model provides for flexibility and responsiveness to market changes enabling a 4.9% year-on-year rise in bulk cargoes Freight Rail Turnover due to efficient contracting and migration between freight segments.
  • Tank car segment business volumes under pressure from unprecedented COVID-19 lockdowns reducing fuel consumption in Russia along with impact of crude oil production cuts agreed under OPEC+. Against this backdrop, the Group’s Freight Rail Turnover in the oil products and oil segment declined 13.3% year on year.
  • Challenging operational conditions in the tank car segment drove Average Number of Loaded Trips per Railcar down 5% year on year along with a 6% year-on-year rise in Average Distance of Loaded Trip.


Successful protection of employee health & safety while ensuring business continuity and a high level of client service

  • Effective digital transformation to remote working model
  • Ensured continued motivation and positive engagement of staff throughout the pandemic
  • No COVID-related redundancies

ESG management strengthened including the introduction of new policies

  • An ESG Board Committee created
  • Diversity and Inclusion, Freedom of Association, Human Rights, Supplier Code of Conduct, Environmental and Energy and ESG policies adopted

Improved ESG disclosure

  • First-time disclosure of Group-wide water consumption
  • Introduction of Group-wide LTIFR measure of employee health & safety
  • Website relaunched with a separate Sustainability section
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