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 14.