UIC/FIATA 3 rd Market Place Seminar

The railway connection - what are the potential markets for railways ?

Barcelona, Spain David Kerr 3rd November 2010 Today’s key points

DB Schenker Rail

The Railway Network

Developing markets for rail

2 Deutsche Bahn A.G. is based on three strong pillars

1)

DB Bahn DB Schenker DB Netze Long Distance Rail Track

No. 2 Public transport Rev. (EUR m) 3,565 Rev. (EUR m) 4,055 Rev. (EUR m) 4,369 in Europe EBIT (EUR m) 141 EBIT (EUR m) -189 EBIT (EUR m) 558 Employees (,000) 15 Employees (,000) 34 Employees (,000) 40 No. 2 Passenger rail transport in Europe No. 1 European rail freight DB Bahn DB Schenker DB Netze transport Regional Logistics Stations No. 1 European land transport Rev. (EUR m) 6,856 Rev. (EUR m) 11,292 Rev. (EUR m) 1,025 No. 1 Biggest rail network EBIT (EUR m) 870 EBIT (EUR m) 199 EBIT (EUR m) 217 in Europe Employees (,000) 25 Employees (,000) 57 Employees (,000) 5

DB Bahn DB Netze DB Services Rev. (EUR bn) 29.3 StadtverkehrUrban Energy

EBIT (EUR bn) 1,685 Rev. (EUR m) 1,985 Rev. (EUR m) 1,237 Rev. (EUR m) 2,308 EBIT (EUR m) 100 EBIT (EUR m) 125 EBIT (EUR m) 103 Employees (‚000.) 239 Employees (,000) 13 Employees (,000) 24 Employees (,000) 2

As of 31.12.2009, revenue as total revenue, 1 Difference between the sum of the business units and DB Group result from other activities/consolidation DB ML AG, Communication Transportation and Logistics (GKL) 3 DB Schenker Rail has consistently expanded its rail freight network along the main corridors

DB Schenker’s rail freight network Acquisitions
NL NS Cargo (2000)
DK DSB Gods (2001)
IT Strade Ferrate del Mediterraneo (2004)
DE RBH Logistics (2005) N
CH Brunner Railway Services (2007)
UK / FR / ES EWS / ECR (2007)
ES Transfesa (2008) NW
PL PCC Rail / PTK (2009)

E New companies W
RO / BG LSD (2000)

SE
HU LCH (2000)
BG DB Schenker Rail Bulgaria (2010) S Holdings SW
BE Cobra
CH BLS Cargo
International Regional CN CUIRC Corridors Network
DK / SE DB Schenker Rail Scandinavia
IT RTC and Nordcargo
RU Trans Eurasia Logistics

DB ML AG, Communication Transportation and Logistics (GKL) 4 DB Schenker Rail is the leading provider of rail freight transport in Europe

Market position in Europe (2009, in bn tkm)

DB Schenker Rail 93.9 DB Schenker Rail PKP Cargo 29.9

Fret SNCF 26.5
About 75% market share in 1) Germany (Europe‘s largest rail RCA 22.123.0 freight market) LDz Cargo 14.6
More than 25% market share in Trenitalia Cargo 13.6 Europe

CD Cargo 12.6
Continuous expansion of European presence LG Cargo 11.9  DB Schenker Rail market leader in SBB Cargo 11.7 Germany and Europe VR Cargo 8.9

1) Incl. MAV Cargo (6.1 bn tkm) – projected on the basis of published figures 1st six months 2009 (ÖBB) / 11 months 2009 (MAV Cargo) Source: UIC statistics; not containing Green Cargo DB ML AG, Communication Transportation and Logistics (GKL) 5 DB Schenker Rail is a Europe-wide positioned rail freight operator. Because of its local know-how …

DB Schenker Rail 2009 Region West Germany / Region East Region Central

DB Schenker Rail Scandinavia DB Schenker Rail UK Tåstrup Doncaster RBH Duisburg Utrecht DB Schenker Rail Nederland

Zabrze No. 1 Paris Mainz DB Schenker Rail Polska in European Rail Freight ECR France DB Schenker Rail DB Schenker Rail Deutschland

Milano Timi şoara Transport Transfesa NordCargo Logistic Services Danubius performance 94 bn. tkm Madrid Pirdop Wagons approx. 114,000 DB Schenker Rail Traction units approx. 3,400 Bulgaria

as of: 31.12.2009 DB ML AG, Communication Transportation and Logistics (GKL) 6 …and it‘s range of special industry solutions DB Schenker Rail can meet the customer needs in an ideal way

DB Schenker Rail market units

Metals/Mining Specialized in transporting steel, coal, ore, scrap and non-ferrous metals

Chemical & oil Intelligent system solutions for transporting liquid, gaseous and pourable goods and for tank wagon management

Building materials, industrial and consumer goods Bundeled branch expertise for rail-based logistics solutions

Intermodal Intelligent combination of rail services with other modes of transport in the maritime and continental transportation

Automotive Rail-based logistics solutions with a focus on supplier and inter-plant services as well as finished vehicle distribution

DB ML AG, Communication Transportation and Logistics (GKL) 7 DB Schenker Rail Region West Corridors and trains per week

DB Schenker UK
International Trains > 30
Total Trains > 3,480

ECR France
International Trains > 150
Total Trains = 400

ECR Spain/Transfesa
International Trains > 55
Total Trains > 130

8 Creating market opportunities for rail during economic recession requires focus and strong leadership…..

FOR OUR OUR WITH OUR CUSTOMERS PEOPLE ASSETS WE HAVE HAVE WE HAVE

Re-designed
Moved the culture
Combined and services and faster than ever optimised across schedules before sectors and geographies
Developed new
Further investment routes in Account
Standardised fleet to Management drive efficiency
Designed new products
Focused on Vision
Limited investment for the future to core projects

9 To become a natural choice over other modes, rail must match or exceed the market’s logistics requirements…..

Door to Door Service requirements; Flexibility, Ease of Use Transit times, 7 Days

Increased flexibility of a Economic sustainability variable cost base Lowest possible cost

Reliable with managed Environmental excellence contingencies Lowest possible emissions

10 Despite negative external factors, Euro Cargo Rail (ECR) increased market share significantly by internal growth

Jan 2005: Nov 2007: Q4 / 2008: ECR Founded by EWS Acquisition Economic French rail freight market by DB Group downturn 100% monopolized begins

Dec 2005 May 2006 Jan 2007: Jan 2008: Jan 2009 Jan 2010: First test First ECR <1% >3% >6 % market > 10 % market Train Revenue market market share (F) share (F) (Calais) Train (F) share (F) share (F) Economic Downturn continues

Preparation Launch Growth Growth & profitability

11 The ECR network is well positioned in France and well connected to all European border points

ECR Network

Part of the DB Schenker Rail group
No 2 rail freight operator in France (10% market share in 2010)
Experience in unit trains and wagon groups to various markets
Access to all of the French network and all border points
International train services to the DB Schenker network (D, UK, NL), Belgium, Italy, and Spain

12 Time senstive refrigerated intermodal modal switch

Connection Widnes extension Barking
Refrigerated services from Spain to the UK Starts 2011 with access to
Longest train connection offered by a single railway cold storage and company in Europe distribution centres for national services
Competitive price compared to existing truck transports Railway companies
Each container saves 2 tons of carbon emissions Channel-Tunnel Delivery time
60 to 65 hours
Punctuality exceeding 95%

Further improvements Port Bou: change of
Expansion to 3 trains a week during 2011 gauge
Additional stop in Widnes (UK) to extend the service to Northern England and Scotland Valencia: 30 containers
Changeover to electronic traction in France from Q4 2010 with further carbon savings

DB ML AG, Communication Transportation and Logistics (GKL) 13 Contact Details

David Kerr

DB Schenker Rail Tel: 00 44 (870) 140 5097 Lakeside Business Park Carolina Way [email protected] Doncaster DN4 5PN Mobile: +44 (0) 7776 165843 United Kingdom

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