DB Cargo Company Presentation 2019 Agenda
Our company
Our strenghts
Our services
Our strategy, Zukunft Bahn and digitalization
2 DB Cargo AG | Status 11/04/2019 Through its eight business units1, DB operates in every segment of the transport market
Passenger Transport: Freight Transport and Logistics: Infrastructure: Moving people from A to B – Smart logistics by land, sea and air Efficient, future-oriented rail in Germany and throughout Europe infrastructure in Germany ◼ DB Cargo ◼ DB Long Distance European rail freight transport ◼ DB Netze Track Long distance rail passenger Rail network ◼ DB Schenker transport2 Global logistics services ◼ DB Netze Stations ◼ DB Regio Passenger stations Regional and local passenger ◼ DB Netze Energy transport in Germany Traction power ◼ DB Arriva Regional and local passenger transport in Europe3
1 The former DB Services Business Unit has been dissolved and its responsibilities distributed across the DB divisions; 2 In Germany and cross-border transport 3 And long-distance rail transport in the UK, through CrossCountry, an Arriva subsidiary 3 DB Cargo AG | Status 11/04/2019 DB holds leading market positions – in Europe and throughout the world
Infrastructure
No.1 Rail infrastructure Passenger Transport Freight Transport No.1 and Logistics Operation of rail stations No. 1 Regional and local rail passenger transport No.1 Rail freight transport No. 2 No. 3 Long distance rail passenger transport Air freight No. 1 No. Land transport No. 4 4 Ocean freight Public road transport No. 5 Contract logistics
4 DB Cargo AG | Status 11/04/2019 Long distance transport volumes continued to grow, while rail freight volumes fell
DB rail transport volumes
Long distance Regional rail1 Rail freight Infrastructure2 (in billions of pkm) (in billions of pkm) (in billions of tkm) (in millions of train-path km)
92.7 1,086 88.2 1,073 42.8 41.9 41.9 40.5
+1.1% +5.6% -4.8%
2017 2018 2017 2018 2017 2018 2017 2018
1 Excluding DB Arriva; including Usedomer Bäderbahn; 2 Including Usedomer Bäderbahn 5 DB Cargo AG | Status 11/04/2019 The business units of Deutsche Bahn are managed directly by the Management Board
Chairman and Digitalization and Human Passenger Finance, Freight Infrastructure CEO Technology Resources and Transport Transport and Legal Affairs Logistics Dr. Lutz Prof. Dr. Jeschke Seiler Huber Doll Pofalla
DB Netze DB Long Distance DB Cargo Track (TBD) (Dr. Bosch) (Sennhenn)
DB Netze DB Regio DB Schenker Stations (Dr. Sandvoss) (Thewes) (Koch)
DB Netze DB Arriva Energy (Dr. Rudhart) (Schein)
6 DB Cargo AG | Status 11/04/2019 The European network of DB Cargo is being led functionally
Dr. Roland Bosch Chairman (CEO)
Pierre Timmermans Sales & Marketing (CSO)
Matthias Reichel DB Cargo Finance & Controlling (CFO)
Dr. Ursula Biernert Human Ressources (CHRO)
Marek Staszek Production (COO)
7 DB Cargo AG | Status 11/04/2019 Agenda
Our company
Our strenghts
Our services
Our strategy, Zukunft Bahn and digitalization
8 DB Cargo AG | Status 11/04/2019 The DB Group's integrated, international structure makes it possible to develop rail operations in Germany as an complete system
Cornerstones of the DB Group
Passenger transport Freight transport and logistics
Rail operations in Germany
infrastructure
9 DB Cargo AG | Status 11/04/2019 DB2020+ Strategy – Freight Transport and Logistics DB Cargo has a strong European network and is the number one in European rail freight transport
Profile ◼ With approx. 4,200 private customer sidings in Europe, DB Cargo offers its customers access to one of the world's largest rail networks ◼ DB Cargo's international network follows the major European rail freight corridors ◼ DB Cargo offers European rail transport in the form of block train, single wagonload and multimodal services ◼ Tailor-made transport and logistics solutions are also available as DB Cargo 2018 additional services that can link the rail mode with road (trucking) and Revenues EUR 4.460 bn ocean freight service ◼ DB Cargo's customers are primarily key accounts EBIT EUR -190 m ◼ Target customers are: Employees (FTEs) 28,842 − In the segment of bulk logistics: Building material, fertilizer, metal and coal industry Metric ton km 88.237 bn − In the segment of industrial and commercial logistics: Automotive, Freight carried 255.5 m t chemical, petroleum, consumer goods, pulp and paper industries − In the segment of combined transport: Operators, freight forwarders Locos/freight cars 2,686 / 82,895 and shipowners ◼ Most of DB Cargo's services are carried out using its own fleet of Ø dist. transported 345 km locomotives and freight cars
10 DB Cargo AG | Status 11/04/2019 DB Cargo offers its customers a comprehensive European network
DB Cargo Your personal performance: Over 28.000 employees in 16 country- DB Cargo Eurasia DB Cargo UK organizations DB Cargo Scandinavia Berlin Doncaster Tåstrup in Europe DB Cargo Polska DB Cargo Russija are at your service DB Cargo Nederland RBH Logistics Zabrze Moscow Utrecht Glad- RBH LogisticsMEG DB Cargo Belgium beck DB Cargo Czechia Antwerp Schkopau DB Cargo DE MEG Ostrava Mainz ECR France DB Cargo Hungaria 1 Paris DB Cargo Györ DB Cargo Schweiz Frankfurt DB Cargo Romania Glattbrugg Bucharest DB Cargo Italia Transfesa Milan Madrid DB Cargo Bulgaria Pirdop
1 European Headquarter 11 DB Cargo AG | Status 11/04/2019 DB Cargo is clear No. 1 in European rail freight
Leading position in Europe… … based on substantial strengths Market share 2018e, in % based on tkm
19
8 Rail logistics solutions Products tuned to customer needs 71
7
Safety High safety 1 5 performance in operations
1 2017 Source: Eurostat, companies, UIC 12 DB Cargo AG | Status 11/04/2019 With its services, DB Cargo forms an important backbone of the European economy
DB Cargo… … runs around 4,000 trains daily and orbits the Earth 13 times per day
… is with its 28,842 employees in 16 country- organizations the world’s most international railway
… could use its 2,686 own locomotives and 82,895 freight wagons to build a train stretching from Berlin to Bucharest
… 50,000 new and retrofitted cars with whisper breaks by end of 2018
13 DB Cargo AG | Status 11/04/2019 DB Cargo provides single wagon solutions throughout the whole of Europe
Hoje Taastrup Fredericia Malmö Gdansk Rostock Maschen Wloclawek Elk Kijfhoek Seddin Poznan Zeebrugge Seelze Hagen Kutno DB Cargo network Antwerp Oderbrücke Gremberg Görlitz Wroclaw Served by DB Cargo Engelsd. Vaires Mannheim Dresden Sosnowiec Bettembourg Hrubieszow DB Cargo country Slawiecice Saarbr. Slawkow Blainville Ostrava Chalupki Other country Strasbourg Offenburg Mulhouse Munich Dijon/ Gevrey Basel Rajka Brenner Sopron Villach Blaj Lyon Chiasso Curtici Bayonne Region Verona Irun Milan Brescia Galati Turin Ploiesti Castelguelfo Valladolid Le Boulou Perpignan Constanta Craiova Bucharest Port Bou Zaragoza Livorno Barcelona Madrid Anagni
Valencia Maddaloni
14 DB Cargo AG | Status 11/04/2019 DB Cargo's European products are part of a strong international network
Høje- DBrailnet offers single wagon Taastrup
Fredericia Malmö solutions throughout Europe: Gdansk
Rostock ➢ Connects over 33 economic centers
Wloclawek Elk Hamburg Seddin Poznan ➢ Connects over 1,500 freight terminals Amsterdam Hanover Kutno Oderbrücke Rotterdam Hagen Horka Zeebrugge Wroclaw Antwerp Leipzig DBrailnet Italy Colo Dresden Gliwice gne Slawiecice Slawkow Hrubieszow Mannheim Jaworzno Nurember Ostrava Chalupki Bettembourg Saarbr. g DBrailnet France Paris Blainville Munich Vien Strasbourg na Offenburg Linz Rajka Mulhouse Rosenheim DBrailnet Benelux Basel Sopron Blai Gevrey Burner Villach Curtici Galati Chiasso Verona DBrailnet Scandinavia Lyon Brescia Region Milan Ploiesti Castelguelfo Turin Bayonne DBrailnet Polska Craiova Constanta Irun Russe Perpignan DBrailnet Southeastern Europe Le Boulou Valladolid Port Bou Livorno Anagni Kapikule/Svil.
Zaragoza Cerkezköy Barcelona Maddaloni Madrid
Valencia
15 DB Cargo AG | Status 11/04/2019 DBantwerp-rhine-shuttle Fast connections to Rhine-Ruhr/ Rhine-Neckar and to our European Network access points at once DBantwerp-rhine-shuttle - via Kijfhoek Description Product Characteristics ◼ Ten departures per week from Antwerp ◼ Antwerp – Rhine/Ruhr A-B (11h) ◼ Antwerp – Mannheim A-B (24h) ◼ Mainly chemical goods but open for all other commodities ◼ Use of strategic Westport-Hub Kijfhoek Kijfhoek Advantages Wanne-Eickel ◼ Transport time reduced to 11h for the Rhine-Ruhr and Antwerp right bank to 24h for the Rhine-Neckar connection left bank ◼ High transport quality through focused operational steering Rhine-Ruhr ◼ Daily frequency ◼ Further westport-connections via Kijfhoek Cologne ◼ Fast transition in Kijfhoek ◼ Access to most terminals in Antwerp ◼ Fast access to our European network
Explanation: Ludwigshafen/ ◼ Same day transition, e.g., to France, Switzerland, Italy and Burghausen southern Germany Economic center/hub Mannheim Economic center/spoke Outlook Connected by shuttle DE ◼ Extension of partnerships to connect remaining terminals in Antwerp Existing Network Rhine-Neckar FR ◼ Development of further fast shuttle-connections within Europe A–A Transfer–time CH IT
16 DB Cargo AG | Status 11/04/2019 Agenda
Our company
Our strenghts
Our services
Our strategy, Zukunft Bahn and digitalization
17 DB Cargo AG | Status 11/04/2019 DB Cargo offers a wide range of services and industry products, supplemented with additional services
Core products
Block train transport Single wagon transport Container logistics For transporting large volumes For transporting small to mid-size Combines rail transport with other within the European transport volumes within the European modes, including first and last mile network transport network by road and terminal handling
Additional services
Door-to-door Rail logistics Sidings Maintenance Eco Plus logistics services Door-to-door Intermodal logistics Set up and Range of oper- carbon-free transport and solutions, including maintenance of ational maintenance transport of goods logistics solutions Railports private sidings services (loco- motives, wagons)
18 DB Cargo AG | Status 11/04/2019 We offer the right transport concept for each customer
KombiTerminal Burghausen Mixed Train In 18 hours from On Standard Gauge Every 3 hours From Burghausen solution for more from Mannheim Malmö to Barcelona to the world felxibility to Italy to Cologne
◼ Distribution and ◼ Intermodal and ◼ Stable roundtrips ◼ The goods are ◼ Direct connection loading of finished conventional direct by combining the transported overnight between the vehicle via the car connections from transport potential of from Mannheim to industrial region of terminal Bremen the Bavarian various customers in Chiasso southern Sweden ◼ Network solution to Chemical Triangle a reliable product ◼ The departure and the German Ruhr Spain on UIC route (ChemDelta ◼ Container and frequency of 3 area (Standard Gauge) Bavaria) to German coil transports hours, 7 days a ◼ Fast and reliable seaports, the Ruhr ◼ Bundling of cargo from Antwerp week, is unique in rail transports on 6 days area and the Rhine- from several to Andernach freight transport a week for all Neckar area locations in the Rail ◼ Higher departure ◼ Individual Railport commodities Hub Kornwestheim to ◼ Access to the frequency and lower solutions also enable without restrictions block trains directly European rail network utilization risk customers without a to weight and size to the port of ◼ Customer-oriented railway siding to use ◼ Access to hundreds Barcelona supply chain this service of destinations in solutions Europe
19 DB Cargo AG | Status 11/04/2019 DB Cargo’s in-depth expertise in key industries is converted into solutions that meet customer needs
Industry solutions ◼ DB Cargo offers profound knowledge and experience in important rail-affine industries ◼ Solutions tailored to specific industry needs ensure Intermodal that quality, reliability and safety standards are met on all types of transports Examples ◼ DBchem-solution: Safe, fast and reliable solutions for time-sensitive chemical and dangerous goods transports in Europe Industrial Logistics ◼ DBsteel-solution: Fast and high-frequency coil transports, ideally suited to the needs of the automotive industry ◼ DBpaper-solution: Specific and reliable service package for the pulp and paper industry linking its most important production sites
20 DB Cargo AG | Status 11/04/2019 The customers of DB Cargo benefit from a highly diverse wagon fleet
Wagon fleet DB Cargo GERMANY Number of wagons 2018
Industrial Logistics Intermodal ◼ With our large wagon fleet we can offer 49,000 wagons 16,000 wagons 10,000 wagons comprehensive transport solutions in Europe
◼ Highly diverse fleet with 200 wagon species (in Germany)
◼ Provision of special equipment for complex requirements (e.g. dangerous goods)
21 DB Cargo AG | Status 11/04/2019 Over 250 multimodal logistics centers: your door to Europe- wide logistics services
2 Our logistics services for you:
◼ Organization of collection and delivery by 33 truck 9 ◼ Transshipment ◼ Open-air and warehouse storage offers you more free space in your own warehouse 94 6 15 8 ◼ Order picking, delivery on call, regional just- in-time/just-in-sequence transport,
11 3 consignment tracking
6 8 Your advantages: 20 3 ◼ No private siding needed for combined 6 rail/road transport ◼ All aspects organized by us 18 2 ◼ Wide range of goods (including small volumes, e.g., palletized goods) 12 2 ◼ Fast, economically and environmental-friendly 1 transport
22 DB Cargo AG | Status 11/04/2019 Agenda
Our company
Our strenghts
Our services
Our strategy, Zukunft Bahn and digitalization
23 DB Cargo AG | Status 11/04/2019 Our sustainable strategy describes our path to the future
Profitable quality leader Our vision: High quality for our DB Cargo – customers in the best choice on European network and sustainable ability to European tracks invest
Top employer Eco-pioneer Attractive employer Leading with a shared European environmental position identity and responsible and culture actions
24 DB Cargo AG | Status 11/04/2019 We follow our strategy along all dimensions of DB2020+
Vision Best Choice on European tracks
Dimen- Profitable quality leader Top employer Eco-pioneer sions - Economic - - Social - - Environmental -
Ambitions / ▪ High reliability and ▪ No. 1 on European rail ▪ Secure and attractive ▪ Expansion of leading Areas of punctuality for our freight market job environment for all ecological position action clients ▪ Strongest and most ages through increased eco- ▪ Long-term partnerships seamless European ▪ European identity and efficiency with satisfied and loyal rail network culture – one team ▪ Pioneer in terms of customers ▪ Profitability and ▪ International career innovation and ▪ Client-specific network capability to invest into development responsibility solutions our network and into opportunities ▪ Social acceptance of ▪ Transparent and pro- growth markets rail freight growth active communication
25 DB Cargo AG | Status 11/04/2019 Leading quality and service-provider – DB Cargo offers its superior quality and reliable services to its clients
Focus Transparent on plannable and proactive and reliable communication transports
DB Cargo is looking for DB Cargo offers long-term individual network- partnerships solutions for its with satisfied customers and loyal customers
26 DB Cargo AG | Status 11/04/2019 Automatization and digitization boost the efficiency and productivity of DB Cargo
DB Cargo Saving costs pushes its and increasing transformation quality through towards a digital rail freight Smart vehicles digitization company
Declining Permanent energy development of consumption competences using innovate Driver advisory system techniques Start-stop automatic
27 DB Cargo AG | Status 11/04/2019 DB Cargo – becoming a top employer with a common European identity and culture
One European team
DB Cargo offers a DB Cargo multicultural offers working international environment and career paths and challenging development tasks possibilities
28 DB Cargo AG | Status 11/04/2019 By 2020, DB Cargo will reduce its energy consumption by 21% and be the environmental leader
DB Cargo Leading ecological Relieves the road The most position through around 90,000 environmentall increased eco- trucks, strung y friendly efficiency together a snake means of transport Eco Plus from Hamburg to Rome
DB Cargo ensures social acceptance in the growing New technologies rail freight sector Energy-efficient drive
29 DB Cargo AG | Status 11/04/2019 DB Cargo constantly contributes to improving the eco- friendliness of rail traffic
Modification …how we work on Modernization Composite eco-friendliness: Rolling stock brake blocks
Usage of emission- Energetic recovery free propulsion system system1 Braking Energy
Specific energy consumption -21% (2006-2020) Driver training Driver advisory 2 Train driver sytem Leader (…)
1 HELMS (Hybrid Electronical Mechanical Shunter) 2 LEADER: Locomotive Engineer Assist Display and Event Recorder [co-financed by EU] 30 DB Cargo AG | Status 11/04/2019 Eco Solutions supports you in becoming an eco-pioneer
Eco Consulting We help you to reduce Transportation of your freight your carbon footprint 100% CO2-free by rail
100% renewable energy from local sources, primarily hydropower plants 100% renewable energy DBeco Plus The method is TÜV SÜD certified Eco Neutral Compensation for New power plant bonus remaining transport emissions by ◼ 10% of DB's revenues from supporting certified EcoPlus are used to promote climate protection innovative power plants for projects renewable energy ◼ Example: Berlin Südkreuz, a rail station of the future
Available in Germany and Austria
31 DB Cargo AG | Status 11/04/2019 BACKUP
32 DB Cargo AG | Status 11/04/2019 European rail freight is a growth market
Market opportunities rail freight Europe Growth prerequisites
+ >1 % p.a.
2017 2030
Growth potential European rail freight
33 DB Cargo AG | Status 11/04/2019 DB Cargo has strongly internationalized its business during the last years
Subsidiaries / Shareholdings of DB Cargo1
DB Cargo Transfesa13 Nederland2
RBH DB Cargo Lokomotion3 Logistics9 Transfracht Belgium CUIRC10
Rail DB Cargo 11 Traction DB Cargo UK DB Cargo Scandinavia6 Company7 (ECR) Polska15
2000 2001 2004 2005 2007 2008 2009 2010 2012 2016 2018
DB Cargo Romania4
DB Cargo DB Cargo DB Cargo DB Cargo DB Cargo DB Cargo Hungaria5 Italia8,16 Schweiz12 Bulgaria4 Czechia Eurasia14
1 Selection of companies, most are fully DB Cargo owned, if other – mentioned in brackets in the footnote; 2 NS Cargo, 3 Lokomotion (30%), 4 Logistics Services Danubius, 5 Logistics Services Hungaria, 6 DSB , 7 Rail Traction Company (4,47%), 8 Strade Ferrate Mediterraneo, 9 RAG Bahn / Hafen GmbH, 10 China United International Rail Containers (8%), 11 English, Welsh & Scottish Railway (EWS), 12 Brunner Railway Services, 13 Transfesa (77%), 14 TEL, 15 PCC Rail / PTK, 16 Nordcargo (60%) 34 DB Cargo AG | Status 11/04/2019