UAB „Vilniaus viešasis transportas“ presentation 2016-09-21 Vilnius

UAB „Vilniaus viešasis transportas“ The biggest passenger transport Company of Vilnius Municipality Annual turnover in 2015 - 58 million. Eur 2,219 employees Annual mileage - 38 million km Mission and Vision Mission - to carry passengers locally (city and suburban) regular routes in Vilnius and nearest municipalities. Vision - to become innovative, transparent and leading passenger transport company in Lithuania and the Baltic countries region, ensuring the highest quality services to its customers at a competitive price and long-term value and sustainable growth for the company's shareholder.

The company owned vehicles 2016-06-30 units. BUSES TROLEYBUSES Total VVT owned 365 253 618 Leased 28 - Iš viso 393 646 CSC VVT carries passengers : 18 trolleybus routes 72 bus routes 6 - fast bus routes 5 night bus routes

Transport fleet by age 2016-06-30

Company‘s debtors by age

Company's weakness Ineffective organizational structure of the company; Company does not focus on improving of quality for passengers. There is no passengers/client service standards; Existing Company‘s customer segment - Schoolchildren, students, pensioners; Passive participation in the planning of routes leads to irrational municipal / Vilnius taxpayers' money; Long-term contracts with Vilnius Municipality shall be signed by not less than operating lease or leasing period which means at least 7-8 years; Absence of stable cash flow from tickets sold to passengers, the company can not take the long-term financial liabilities; A large municipal debt, due to lack of funding limited Company‘s opportunities to upgrade vehicles and to invest in new technology to ensure its efficient operation; Electronic-ticket system is technically out of date, the software is not updated; 

Strategic activities vectors Together with the municipal council solve a public service contract extension for the period, which would ensure the continuity of the company's activities; In coming next 2 years to strengthen the company's financial standing; Restructuring helps to lift the Company to new quality level and to make company more competitive and capable to participate in municipality routes lease tenders; Renew of the vehicle fleet through long term rental / leasing (150 units); Trolleybus renewal plan using of EU funds (40 pcs.); Evaluate electric trolleybus/bus assembly possibilities in VVT production base during 3Q 2016; To implement in the Company LEAN or similar best practice of process management system that will allow to optimize processes and reduce costs; Start employee training program to ensure passenger service standards; Put all efforts to withdraw the Vilnius city municipality and Susisiekimo paslaugos debts;

Company reorganization In June 2016 the company has launched reform, consultations with trade unions. 2016-09-08 Vilniaus Public Transport Board approved the new management structure; The restructuring plan has to be finally accomplished till end of this year.

The aim of the Company structural changes To optimize the company's management and organization work, rationaly use of material resources of the company. Rational use of human resources, to increase the allocation of responsibilities. Avoid structural units and individual staff responsibilities and duplication of functions. To reduce management costs and wage fund. Combining of technological processes and optimization. Preparatory process combining with the aim of synergic efect Digitization of daily process, avoiding the human factor.

Company reorganization I phase The optimized structure Optimized 108 employees II phase Acquisitions alcohol testers and software Optimized 9 employees III phase Outsourcing the cleaning and washing services Optimized 43 employees

Transformational effect Additional costs One-off costs - severance compensation and etc. - 1.300 tEUR Savings Once the the reorganization phases are completed, the annual savings on wages will reach to 2,300 tEUR Fuel savings - 800 tEUR Material costs saving will reach appr. 10 percent - 1.4 mln. EUR)

Market potential Potential VVT passenger flow - the working-age population of Vilnius city is 349 thousand.

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