Outlook for 2015

Continuing economic instability is creating uncertainty in the market. Increasing turnover will be extremely challenging in the current economic situation and as the competition gets tougher. The operating result of VR Group is expected to be weaker than in 2014.

Passenger services, which was reorganised as of 1 February, will now start making its offerings more customer-friendly by aiming to  provide a popular and competitive travel alternative on all domestic routes. Passenger services has launched a number of projects concerning pricing, demand-based route planning and clarity of communications. In order to improve the customer experience, VR will continue to develop its online shop, customer loyalty programme and service experience, while continuing itsactive campaigning.

Major projects in 2015 include the opening of the Travel Centre Dixi in Tikkurila (in January) and the inauguration of the Ring Rail Line (in summer). The last of the new DuettoPlus restaurant cars will be put into service, which will provide a good basis for the improvement of restaurant services.

The outlook of logistics for 2015 are closely linked with the growth prospects of Finnish industries and the economic and political situation in Russia. Systematic efficiency improvements will continue andnew growth opportunities with existing and new customers will be actively sought.

Even though the Finnish track maintenance market is expected to remain at reasonable levels, competition will probably get tougher as a result of the slowdown in the construction business and the overall state of the infrastructure engineering sector. Based on the work situation at the start of 2015 and the known contract tendering, the outlook for VR Track is promising. Especially the business development programme, started in 2013, is expected to improve the company's profitability.

The Group's liquidity remains strong. Funding of future investments into equipment and payment of dividends will reduce cash reserves in coming years. At the end of the year, the Group's equity ratio was 71.6 per cent. Without long-term leasing responsibilities, it was 82.5 per cent. The equity ratio is also expected to decline.