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Strategy 2019- 2023

The Group PKP CARGO - Become the Central European leader in rail freight transport by taking the dominant position in the area of the 'Three Seas Initiative' and on the 'New Silk Road'

Main objectives of PKP CARGO Group 2019 -2023 strategy

Rollout of the PKP CARGO Group's intermodal transport in the North-South corridor and on the New Silk Road

Strategic initiatives of the PKP CARGO GROUP

Strategy of the PKP CARGO Group 2019-2023. What benefits will the employees of the PKP CARGO Group have on the new strategy?

The Strategy adopted at the end of 2018 sets out the main directions of development of the PKP CARGO Group. We strive to ensure that our Group not only strengthens its position on local domestic markets, but the priority is to become the leader in intermodal transport in the TriSeas region and the EU section of the New Silk Road. This transport area is the most promising and opens up a chance for us that PKP CARGO Group will become not only the leading carrier, but also the largest logistics operator.

The process of expansion will be supported by increasing operational efficiency through digitization and computerization as well as optimization of transport processes. It is vital for the Group to improve the efficiency of rolling stock utilization and property management. At the same time, we will improve our organizational efficiency through optimization of decision-making processes and adjustment of the structure of PKP CARGO Group to the performed actions and the development of organizational culture. The objectives of the adopted Strategy will be monitored through a dedicated internal bureau.

The implementation of the objectives will translate quickly into improving the working conditions in our Group. This will apply to both the Headquarters, PKP CARGO Units, our subsidiaries, including AWT. I care that we can all be proud that we have a stable job in a well-functioning organization that does not waste the energy and effort of its employees. Therefore, it is important to constantly improve the level of management in companies and units, and better equip our Group with IT solutions and other tools that improve working conditions. This results in PKP CARGO joining the group of most innovative entities. Wherever it is possible, people's work will be supported by modern technology. I can also ensure that one of the priorities of the PKP CARGO Management Board is to improve the qualifications of our employees through specialized trainings, courses and studies. Work in our Group is to give us all a great satisfaction and a sense of belonging to the elite group of employees of one of the leading railway and logistics companies in Europe. This is a huge value, which should also be accompanied by material satisfaction.

We strive to improve the financial ratios of the PKP CARGO Group and to increase revenues and profits, because it also opens up prospects for remuneration level growth. It is a very important issue for employees to feel the improvement of the Group's situation also via their personal finance. This applies especially for very efficient employees, because we want to reward efficiency and productivity at work. There is no doubt that the incentive remuneration system is the most optimal, it makes it profitable to be a good employee who is engaged in the activities of their company, and cares for the improvement of the quality of work and the level of customer service.

That is why it is so important to strive to ensure that all companies in the PKP CARGO Group have a good economic condition and are managed better and better. Our employees know that as a Group we are strong but we also have slightly "weaker links" that do not yet fully use their potential. We have to change it, and implementing organisational upgrades are one of the paths leading to the goal. PKP CARGO Group needs to have clearer and thus more effective structure to make even better use of the synergy effect of our companies. These activities will result in raising the level of our competitiveness on the market.

In conclusion, I would like to invite all employees of PKP CARGO Group to work together on the implementation of our Strategy. Without your commitment, work and dedication, we will not achieve the objectives we set forth. I am convinced that soon everyone will feel the positive effects of new Strategy being enforced.


CZESŁAW WARSEWICZ
PRESIDENT OF THE MANAGEMENT BOARD OF PKP CARGO

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