Brief description of the Development Strategy until 2030
The Russian Railways Group’s mission aims to achieve the following strategic goals by 2030:
Key performance indicators
The Russian Railways Board of Directors on 30 June 2014 approved (Minutes No. 15) the Regulation on the Key Performance Indicators of Russian Railways (hereinafter the Regulation on KPI) in accordance with Directive No. 2759p-P13 of the Government of the Russian Federation dated 25 April 2014 and based on the Guidelines for Applying the Key Performance Indicators (approved by Order No. ISh-P13-2043 of the Government of the Russian Federation) dated 27 March 2014).
The Regulation on KPI includes two groups of indicators: financial (amount of dividends, EBITDA, EBITDA margin and revenue (collected)) and industry-related indicators (traffic safety level and work performed). The KPI stipulated in the Regulation serve as the basis for motivating members of the Russian Railways Management Board (approved by the Russian Railways Board of Directors on 30 June 2014).
Russian Railways approved the method for calculating the Russian Railways Group’s return on invested capital (ROIC) for unregulated types of activities, which specifies the procedure for calculating the actual value of this indicator based on the consolidated IFRS financial statement, in accordance with the Guidelines for Applying the Key Performance Indicators (Directive No. 2759p-P13 of the Government of the Russian Federation dated 25 April 2014). Work was performed in 2016 to update the methodology used to calculate this indicator taking into account the decisions of the Russian Railways Board of Directors dated 27 June 2016 (Minutes No. 12) and also taking into consideration that the methodology did not regulate the procedure for calculating the planned ROIC value for the future period.