NEWS

Interim 2014 Results

Globaltrans Investment PLC (the "Company" and together with its consolidated subsidiaries "Globaltrans" or the "Group"), (LSE ticker: GLTR) today announces its financial and operational results for the six months ended 30 June 2014.

Certain financial information which is derived from the management accounts is marked in this announcement with an asterisk {*}. Information (non-GAAP and operational measures) requiring additional explanation or defining is marked with initial capital letters and the explanations or definitions thereto are provided at the end of this announcement.

For informational purposes, the percent change for certain financial information included in this announcement is presented in Russian Roubles, which is the Functional Currency of the Company, its Cyprus and Russian subsidiaries.

Certain comparable financial and operational information included in this announcement has been re-presented for the six months ended 30 June 2013 to conform to changes in the presentation of operations with Engaged Fleet for the six months ended 30 June 2014.

Financial highlights

In the first six months of 2014 the Group performed well given the continued challenging market environment and economic backdrop. The results for the period are also impacted by the translation effect of the 13% depreciation in the average exchange rate of the Russian Rouble against the US Dollar compared to the same period the previous year^[1].

• Revenues were affected by the ongoing soft pricing conditions with Adjusted Revenue of USD 618.0 million* in the first six months of 2014, down 5% year on year in Russian Rouble terms (-16% in US Dollar terms);
• Management focused on tight control of costs limiting the increase in Total Operating Cash Costs to 2% year on year in Russian Rouble terms (-10% in US Dollar terms), half the 4% year on year growth in the Group's Freight Rail Turnover (excluding Engaged Fleet);
• Margins remained solid with an Adjusted EBITDA Margin of 44%* in the first six months of 2014 (H1 2013: 47%*). Adjusted EBITDA declined to USD 270.2 million* in the first six months of 2014 (-12% year on year in Russian Rouble terms, -22% in US Dollar terms);
• Strong focus on free cash generation led to Free Cash Flow^[2] of USD 179.8 million* in the first six months of 2014, a decline of 1% year on year in Russian Rouble terms (-13% year on year in US Dollar terms);
• Profit for the period was USD 105.3 million in the first six months of 2014, a decline of 20% year on year in Russian Rouble terms (-29% in US Dollar terms);
• Comfortable debt profile was maintained with Net Debt of USD 875.7 million* and Net Debt to Adjusted EBITDA for the last twelve months of 1.5x* as at 30 June 2014. The percentage of Russian Rouble denominated debt was 96% with the share of debt with fixed interest rate at 88%* as at 30 June 2014.

Operational highlights

• Strong operating performance in a challenging market:
  • Freight Rail Turnover (including Engaged Fleet) up 2% year on year to 80.6 billion tonnes-kms in the first six months of 2014. The Group's Market Share was maintained at 8.4%. All railcars are fully deployed;
  • In the priority segments of metallurgical cargoes and oil products and oil, Freight Rail Turnover (including Engaged Fleet) was up 8% and 2% year on year respectively;
  • The Group's Freight Rail Turnover (excluding Engaged Fleet) was up 4% year on year;
  • Empty Run Ratio for gondola cars was maintained at a sustained low level of 38%; Total Empty Run Ratio further improved to 51%;
  • Average Price per Trip was down 3% in Russian Rouble terms compared to full year 2013 (-4% compared to the first six months of 2013);

• Increased resilience of the business:
  • More than 60% of the Group's Net Revenue from Operation of Rolling Stock is now covered by long-term service contracts (Metalloinvest, MMK and Rosneft^[3]);
  • Service contract with Metalloinvest extended by a further 19 months to the end of 2016;
  • Increase in the service volume under the long-term contract with MMK from 70% to 80% throughout 2014 (contract valid to the end of February 2018);
  • Service contract with Rosneft successfully renegotiated and extended to the end of March 2016;

• New industry regulation benefits players with modern fleets like Globaltrans:
  • Mandatory certification requirement for extending the useful life of railcars was introduced in August 2014;
  • Useful life of an estimated 240,000 railcars (approximately 20% of total railcar fleet in Russia) will end in 2014-2016^[4] and require certification to extend;
  • The expected high cost of certification will likely drive accelerated retirement of old fleets thereby improving the supply/demand balance;
  • Globaltrans owns one of the most modern sizeable fleets on the market with an average age of 8.4 years^[5]. Only about 2% of the Group's fleet (1,400 railcars) are expected to reach the end of their economic useful life by the end of 2016.

Comments

Sergey Maltsev, CEO of Globaltrans Investment PLC, said:
"Globaltrans again demonstrated its ability to perform well against a backdrop of continued market weakness. The period was marked by further growth in the Group's Freight Rail Turnover and a sustained high level of operational efficiency, as well as our proven ability to develop partnerships with key clients. Our ongoing performance is underpinned by the extension of the long-term contract with Metalloinvest early in the year and an agreement with Rosneft, to expand our business relationship and cooperate on a long-term contract basis.

"While there was ongoing pressure on the top line, the impact on profitability was partly offset by our careful control of operating cash costs, which increased slower than the growth in our Freight Rail Turnover (excluding Engaged Fleet). We are particularly pleased that we were able to deliver Free Cash Flow that was broadly in line with the previous year in Russian Rouble terms.

"Our key priorities remain targeting further cost efficiencies, expanding partnership agreements with key clients and prudent capital allocation. We will keep our expansion CAPEX on hold until market conditions support further investment and will maintain an appropriate balance between reducing debt and returning cash to shareholders. The Board continues to support a Dividend Pay-out Ratio of not less than 50% of Imputed Consolidated Net Profit in periods of sustained low investment activity and comfortable leverage.

"The business conditions and pricing environment in the Russian rail freight industry are expected to remain challenging in 2014. However, the new regulation related to the useful life of railcars is poised to change the supply and demand balance, benefitting rail operators with modern fleets like Globaltrans. The impact of the new regulation and continued economic pressure on weaker players could present interesting investment and value-accretive M&A opportunities. We will remain watchful as things unfold."

Downloads

• Interim 2014 Results Announcement
• Interim 2014 Results Presentation
• Condensed consolidated interim financial information (unaudited) for the six months ended 30 June 2014
• Interim 2014 Operational Information (Excel)

Analyst and Investor Conference Call

The release of the Group's financial and operational results will be accompanied by an analyst and investor conference call hosted by Sergey Maltsev, Chief Executive Officer and Alexander Shenets, Chief Financial Officer.

Date: Tuesday, 2 September 2014
Time: 14.00 London / 9.00 New York (EDT) / 17.00 Moscow

To participate in the conference call please dial one of the following numbers and ask to be put through to the "Globaltrans" call:

UK toll free: 0808 109 0700
International: +44 (0) 20 3003 2666

As there will be simultaneous translation for the first part of the call (slide presentation), you should state whether you prefer to listen in English or Russian. During the Q&A session, all participants will hear both languages.

There will also be a webcast of the call available through the Globaltrans website (www.globaltrans.com). Please note that this will be a listen-only facility.

ENQUIRIES
Globaltrans Investor Relations:
Mikhail Perestyuk
+357 25 503 153
irteam@globaltrans.com

For international media:
StockWell Communications
Laura Gilbert / Zoë Watt
+44 20 7240 2486
globaltrans@stockwellgroup.com

NOTES TO EDITROS
Globaltrans is a leading private freight rail transportation group with operations in Russia, the CIS and the Baltic countries. The Group's main business is the provision of freight rail transportation services. Globaltrans provides services to more than 500 customers and its key customers include a number of large Russian industrial groups in the metals and mining and the oil products and oil sectors.

The Group has a Total Fleet of about 65 thousand units of rolling stock with an average age of 8.4 years^[15]. Universal gondola cars and rail tank cars constitute the backbone of the Group's fleet. About 93% of the Total Fleet is owned by the Group. In the first six months of 2014 the Group's Freight Rail Turnover (including Engaged Fleet) was 80.6 billion tonnes-km. The Group's Market Share was 8.4% of overall Russian freight rail transportation volumes.

Globaltrans' global depositary receipts (ticker symbol: GLTR) have been listed on the Main Market of the London Stock Exchange since May 2008. Globaltrans was the first freight rail transportation group with operations in Russia to have an international listing.

To learn more about Globaltrans, please visit www.globaltrans.com

LEGAL DISCLAIMER
Some of the information in this announcement may contain projections or other forward-looking statements regarding future events or the future financial performance of Globaltrans. You can identify forward-looking statements by terms such as 'expect', 'believe', 'anticipate', 'estimate', 'intend', 'will', 'could', 'may' or 'might', the negative of such terms or other similar expressions. Globaltrans wishes to caution you that these statements are only predictions and that actual events or results may differ materially. Globaltrans does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of Globaltrans, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, rapid technological and market change in the industries Globaltrans operates in, as well as many other risks specifically related to Globaltrans and its operations.

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^{[1] The Group's financial performance in the first six months of 2014 was affected by a 13% depreciation compared to the same period the previous year in the average exchange rate of the Russian Rouble (Functional Currency of the Company, its Cyprus and Russian subsidiaries) against the US Dollar (the Group's financial information presentation currency). The 30 June 2014 period end exchange rate of the Russian Rouble against the US Dollar weakened by 3% compared to the end of 2013.}

^{[2] Free Cash Flow (a non-GAAP financial measure) is calculated as "Net cash from operating activities" (after "Changes in working capital" and "Tax paid") less "Purchases of property, plant and equipment" (which includes maintenance CAPEX) and "Interest paid".}

^{[3] Including RN Holding (former TNK-BP).}

^{[4] Estimated by Globaltrans. May differ from estimations or information available from the other sources. Estimated as a percentage of the total fleet of railcars in Russia as of the end of 2013.}

^{[5] As of 30 June 2014.}