Russian Railways positioning - international peer group
Among largest railway companies globally…
Peers Revenue 2013, US$bn1
55,3
51,9
42,8
22,0
12,0
RZD
baa33
DB
aa33
SNCF
Baa1
10,6
UNP
CSX
CN
A3
Baa2
A3
6,1
5,7
5,2
2,4
CPR
Transnet
Kaz zd
NSB
ba23
a33
3,1x
3,2x
3,3x
NSB
Deutsche
Bahn
Transnet
Baa1
a33
…with one of the lowest leverage levels
Peers Net Debt/EBITDA2 2013YE
2,6x
1,5x
1,7x
1,9x
2,0x
2,2x
RZD
CSX
Kazakh Temir
Zholy
Canadian
Pacific
0,9x
Union Pacific
CN
SNCF
Source: Company data, publicly available audited financials
Notes: peer set includes rail companies with public credit rating
1 Converted into USD using average for 2013 USD/RUB FX rate of 30.749
2 EBITDA = operating profit + depreciation and amortization; Net Debt = loans and borrowings + financial lease liabilities - cash and cash equivalents
3 Standalone (BCA) rating is applied
1
Russian Railways in 2008 and 2013: profile
For the period since 2008 to 2013 financial and operational profile of RZD has become significantly stronger:
Operational results:
improved
Net Debt leverage:
decreased
Debt structure: flat currency profile and
fundamentally improved duration
606
606
585
20,4%
34%
438
18,2%
1,8x
295
295
32%
2,0x
66%
68%
219
333
2008
2013
EBITDA²
71%
24%
20%
56%
22%
7%
2008
2013
2008
2013
Note: JSCo RZD standalone
Net Debt (Consolidated)
Net Debt/EBITDA
Rubles
Hard Currency
2008
2013
Note: JSCo RZD standalone
Less than 1 year
1 – 3 years
More than 3 years
2
Russian Railways in 2008 and 2013: profile and ratings
For the period since 2008 to 2013 financial and operational profile of RZD has become significantly stronger:
Operational results:
improved
Net Debt leverage:
decreased
Debt structure: flat currency profile and
fundamentally improved duration
606
606
585
20,4%
34%
438
18,2%
295
295
1,8x
32%
2,0x
66%
68%
219
333
2008
2013
EBITDA²
71%
24%
20%
22%
56%
7%
2008
2008
2013
2013
2008
Net Debt (Consolidated)
Net Debt/EBITDA
Rubles
Hard Currency
2013
Note: JSCo RZD standalone
Note: JSCo RZD standalone
Less than 1 year
1 – 3 years
More than 3 years
However, issuer ratings did not reflect this progress - on the opposite, they have been downgraded:
Ratings as 31 December
2008
2013
S&P
BBB
BBB
Moody’s
A3
Fitch
BBB+
downgrade
Baa1
BBB
3