Charter capital and dividends

Charter capital

The Russian Federation is the founder and the sole shareholder of Russian Railways. On behalf of the Russian Federation, the Government of the Russian Federation exercises the powers of shareholder.

The charter capital of Russian Railways was established by the founder by way of depositing the property and asset complexes of federal railway transport organisations.

As of the end of 2013, the charter capital of Russian Railways was RUB 1,919.5 billion and was divided into 1,919,454,568 registered ordinary shares in book-entry form with the nominal value of RUB 1,000 each.

Report of the distribution of net profit obtained by the results of 2012

According to the results of 2012, Russian Railways obtained net profit in the amount of RUB 14.1 billion.

In accordance with point 42, Section 6 of Russian Railways’s Article of Association, the reserve fund will be 5% of reporting period net profit (RUB 705.5 million).

Estimation of the Company’s net profit distribution based on the results of 2013

According to the results of 2013, Russian Railways secured net profit in the amount of RUB 740 million.

In accordance with point 42, Section 6 of Russian Railways’s Article of Association, the reserve fund will be 5% of reporting period net profit (RUB 37 million.).

Dividends

Russian Railways dividend policy is based on the balance of the Company and its shareholders’ interests when determining the amount of dividend payments, and namely for:

• Increasing the Company’s investment attractiveness;
• Strict compliance with shareholders’ rights specified by the applicable legislation of the Russian Federation.

In accordance with the recommendations of Federal Property Management Agency of the Russian Federation, based on the results of 2013, it is planned to allocate RUB 185 million (25% of 2013 net profit) for the payment of dividends on Russian Railways ordinary shares.