FESCO – National champion in integrated logistics with global reach

The leading privately owned integrated transportation and logistics company in

Russia. A unique combination of marine shipping, rail transportation and port assets

gives our Group the opportunities to offer complex tailor-made cargo services in

Russia and to international clients worldwide.

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Incorporation of “Dobroflot” as

predecessor of FESCO (1880)

1880 1992 1995 2002 2004 2006 2007

Privatization of FESCO (1992)

RTS Listing of FESCO (1995)

Industrial Investors acquires controlling interest in FESCO (2002)

Introduction of new intermodal strategy (2004)

Establishment of Russian Troyka as JV between FESCO and

Russian Railways (2005)

Acquisition of TIS and Incotec to strengthen the freight

forwarding aspect of intermodal strategy (2006)

Industrial Investors buys out the remaining State share leading to

81.7% ownership (2006)

Acquisition of Transgarant to expand intermodal strategy into rail (2006–

2007)

Acquisition of 50% of NCC (2006)

Acquisition of 70% of ESF Euroservices to provide

container feeder platform for Baltic ports (2007)

Acquisition of 50% stake in the Port of Vladivostok to expand port portfolio

to all major Russian coast lines (2007)

Government Shipping Charter establishes

FESCO (1935)

Incorporation of Transgarant (1997)

Creation of “FESCO Logistics” to focus on container

operations (2003)

2008

Acquisition of 50% stake in Vladivostok Container Terminal, total ownership increases to 75% (2008).

Establishment of FESCO Transportation Group Managing Company to

consolidate and centralize decision-making and control, HQ moves to

Moscow.

2005 2010

130 years success

Creation of FESCO Lines Vladivostok to focus on liner container shipping

(2007)

2009

Establishment of FESCO Integrated Transport – a single container logistics

operator and sales force of FESCO

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Sale of 50% of NCC (2010)

Acquisition of 12.5% of TransContainer

(2010)

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National Champion in Integrated Logistics

Russia’s largest container and dry bulk ship-owner

Own fleet of 48 vessels, totalling 0.8 million DWT

Port container and break-bulk facilities in Russian Far East

Inland container facilities

Leader in port container throughput in Russian Far East

One of Russia’s TOP 5 private independent railcar operators

Over 17,000 units of diversified rolling stock – railcars of 16 different types

12.5% stake of TransContainer

Shipping Ports and Terminals Rail Liner & Logistics

Integrated solutions for container cargo

Full spectrum of forwarding services for container, break bulk, oversize/overweight and special cargo

“Door-to-door” delivery

Full spectrum of reefer container services: shipping, port handling, rail, trucking

Group strategy

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Leadership position on the market of container transportation

Acquisitions of ports assets in Russian Far-East: synergies with existing lines, highest-margin business

Development of inland terminals: linking two ends of the Trans-Siberian railway

Expanding geographical coverage

Organic growth: new services, capacity optimization, innovative techniques in sales improvement and cost optimization

Diversification of assets base

Integrated solutions in different market segments

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Rail assets

Transgarant

One of major privately owned freight rail operators in the Russian transportation market

Focus on the transportation of a variety of dry bulk cargo across Russia (mainly coal, iron ore and metals)

Owns and operates 16,601 wagons, comprising gondolas, fitting platforms and a wide range of other types of wagons

Widely diversified client base (key clients: Metchel, Mondi, Evraz, SUEK and KVSU)

Russkaya Troyka

50/50 joint venture of RZhD and FESCO focus on container transportation

owns and operates 1,439 fitting platforms for carrying containers

Main klients: FIT, VCT, VSC, Ecador, HUPAC

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TransContainer Today Russia’s largest rail container transportation and rail-side

container infrastructure company with over 50% overall market share of all ISO containers transported by rail in Russia)

Largest flatcar fleet and rail-side container terminal network in Russia

Diversified customer base served by a sales network of 149 sales outlets in Russia and supported by presence in CIS, Europe and Asia

TransContainer privatization is part of the Russian Railways’ Reform Program, endorsed by the Russian Government and aimed at separation of operations from infrastructure

Russian Railways privatized 35% of TransContainer through IPO in November 2010

Financial Highlights Item

(mln. RUR) 2008 2009 1H2009 1H2010

Adjusted Revenue 17,806 13,262 6,355 7,469

EBITDA 7,211 3,963 1,786 1,902

Adjusted EBITDA Margin

41% 30% 28% 26%

Assets as of December 2010

24,255 Flatcars 58,784 Containers

47 Rail-Side Container Terminals 318 Trucks and 501 Semi-trailers

Rail assets

FESCO Owned Equipment: Vessels CONTAINERSHIP BULKER GENERAL PURPOSE SHIP

ICE-BREAKER CARGO VESSEL

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Total Fleet: Owned

Quantity DWT

Containerships 17 278,078

Bulkers, general purpose ships 23 426,772

Ro-Ro 4 16,330

Ice breakers 4 21,450

Total: 48 742,630 RO-RO

FESCO Owned Equipment: Wagons / Containers

7,358 units

Fitting platforms

Box cars

Universal gondola cars

Other wagons

3,420 units

1,244 units

2,037 - 80ft flat cars

948 - 60ft flat cars

872 - 40ft flat cars

Total – 3,857 Average age – 6 years

5,278 units

FESCO own

Transport Assets 40ft High Cube – 9,620

20ft – 9,982

40ft – 3,150

Total – 17,300 units Average age – 10.5 years

Total – 22,752 units

CONVENTIONAL FLAT CARS

CONTAINERS

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MOSCOW

CHELYABINSK

KHABAROVSK

KASACHSTAN

CHINA / MONGOLIA

VLADIVOVSTOK

ST. PETERSBURGUST-LUGA

NOVOROSSIYSK

UA /ILLYCHEVSK

Ports

Location Function Ownership Terminal capacity per

year [TEU]

Port Vladivostok

Container terminal

Ro-Ro terminal

Reefer Container terminal

Dry-Bulk terminals

75 % 290,000

50 % 100,000

100% 75,000

50% 6.2 mln tonnes

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CHELYABINSK

KHABAROVSK

KASACHSTAN

CHINA / MONGOLIA

ST. PETERSBURGUST-LUGA

UA / ILLYCHEVSK

NOVOROSSIYSK

VLADIVOVSTOK

MOSCOW / MIKHNEVO

SHUSHARY

Michnevo

Michnevo

Hinterland terminals and Logistics Centers

Location* Function Ownership Total area [ha] Permanent capacity

[TEU]

Mikhnevo Logistics center 100% 69 under designing & construction

Chelyabinsk Logistics center 100% 21 2,200

Khabarovsk Logistics center 100% 10 2,200

* Railway link is available at all terminals

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Khabarovsk

2010 Annual Results

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Division Segmental sales

(‘000 USD) Segmental EBITDA

(‘000 USD) EBITDA Margin

Liner & Logistics 424,068 59,229 14%

Ports & Terminals 98,851 43,830 44%

Rail 205,727 51,678 25%

Shipping 157,462 14,285 9%

Service 2010 2009

Bilateral sea container trade, TEU 307,919 245,490

Domestic sea container trade, TEU 66,075 68,339

Rail container volumes, TEU 127,542 101,156

VCT container throughput, TEU 288,195 205,518

Rail conventional cargo load, mln. tons 24.4 18.6

VMTP cargo handling, mln. tons 6,912,883 6,207,521

FESCO Services – Global map: From single-transport to integrated logistical solutions

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FESCO services: Regular sea lines in the Asia-Pacific Region

• 9 own regular container lines, calling at Russian Far East ports

• More that 50% market share of Russian export-import container shipments in the Asia-Pacific Region

• 4 domestic container lines

• 5 export-import container lines

• 1 Ro-Ro line

• Direct connection between FESCO export-import and domestic lines services

• Direct link with FESCO rail service via FESCO owned terminal

• Wide transshipment geography

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FESCO services: FESCO Bi-lateral lines

Russia

China Yokohama

Moji

Nagoya

Toyama Niigata

Kobe

Tianjin (Xingang)

Qingdao

Shanghai

Ningbo

Hong Kong

Vostochny Vladivostok

FCDL

JTSL

Russia

China

Korea

Ulsan

Vladivostok Vostochny

Busan

Holmsk Korsakov

KSDL

FKSL

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FESCO services: Domestic Shipping

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Anadyr

Magadan

Petropavlovsk- Kamchatskiy

Korsakov

Vostochny

Vladivostok

DOMESTIC SEA SHIPPING

FESCO services: from China, Korea, Japan, Europe to Russia via Baltic ports and railroad border stations

Ro-Ro & container services

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FESCO services: U.S. West Coast - Russia

Russia

USA Oakland

Los Angeles

Seattle

Magadan

P.Kamchatskiy

Vladivostok Vostochny

Pusan

Korsakov

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FESCO services: Reefer service

Own rolling stock

(458 specialized flat wagons,

48 diesel cars)

Reefer container terminal

Dalreftrans

Moscow & St. Petersburg

branch offices

Motor vehicles

(25 freightliners)

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FESCO services: RORO service

Russia

China

Korea

Busan

Vladivostok

Fushiki

Kobe

Yokohama

Nagoya Hamada Osaka

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Vladivostok Automobile Terminal

• Berths #3-4 of Vladivostok port

• Annual capacity of 100,000 cars

• 3 warehouses, including 10 level parking lot

with capacity of 1,000 cars

• Cargo base – new imported cars and

heavy duty vehicles from Japan & Korea

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Why FESCO

• Efficient intermodal solutions for shipments from/to Russia and the CIS based on own logistics assets and agency network

• Global network of sales offices in Russia, CIS, Asia Pacific, Europe and US

• Competence and reliability based on 130 years’ of

experience in international and domestic transportation

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• Widest range of services, routes and cargo solutions available from a single provider!

Phone: +7 (495) 926-80-00 Fax: +7 (495) 926-81-00

Web site: www.fesco.ru