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Strategy implementation monitoring

The strategy of the PKP CARGO Group consists of strategic goals, ie long-term goals and short-term goals. Long-term goals are to reflect the company's development and expansion in terms of the scope and efficiency of operational activities. Short-term goals are the implementation of the Company's intentions in the area of its local development and increasing the Company's value for its stakeholders.

Strategic goals:

1. Become number 1 in the area of the "Three Seas Initiative" and on the New Silk Road routes in the European Union measured by freight turnover and freight volume by 2023 and strengthen this position in 2023-2038 Freight turnover and freight volume in relations to competition
2. Gain 65% of the Polish rail freight market by 2023 measured by freight turnover Share on the Polish market measured by freight turnover

Two key result indicators for the PKP CARGO Group are transported freight volume and freight turnover. The freight volume is understood as the total mass of transported cargo goods, expressed in mass units. The freight turnover is the indicator measuring the transported volume on a given tariff distance. The goals set forth for the incoming years are very ambitious and the Group makes every effort to ensure their realization.

Short-term goals:

1. Devise the most competitive offer for business partners on the New Silk Road in the European Union and in the area of the Three Seas Initiative Increase in sales on the New Silk Road and in the "Three Seas" area in the face of increased sales of the competition
2. Grow operational efficiency measured by KPIs on an annual basis Specialized operational KPIs defined in the organization
3. Maintain a pace of growth in the share price that is higher than the WIG30's growth Growth of PKP CARGO shares in relation to growth of WIG30 index
4. Generate annual net profit equal to at least 5% of revenue starting from 2019 and at least 8% of revenue starting from 2023. Net result margin of PKP CARGO Group

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