1DB Schenker, August 2008 Berlin, August 2008 Deutsche Bahn Transportation and Logistics Division The Transportation and Logistics Division of Deutsche

1DB Schenker, August 2008

Berlin, August 2008

Deutsche Bahn

Transportation and Logistics Division

The Transportation and Logistics Division of Deutsche Bahn


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approved

(DB 2008)


Strategic Focus

Brief Description of the Business Units

Trends in the Transportation and Logistics Market

2.

Transportation & Logistics within the DB Group

1.

4.

3.


Deutsche Bahn in 2007: We are present in three segments of the transportation market

DB AG serves as Management Holding

Vertically integrated Group structure

Ratings: Aa1 / AA

No. 2 European rail passenger transport

No. 1 European local public transport

No. 2 European passenger transport

No. 1 in European transport infrastructure company

No. 1 in European rail freight transport

No. 1 in European land transport

No. 2 in airfreight worldwide

No. 3 in ocean freight worldwide

No. 6 in contract logistics worldwide

As of December 31, 20071) Difference between totals for business categories and DB Group due to effects of other activities/consolidation2) EBIT 2007 before adjusting for one-time effects, EBIT after one-time effects: EUR 2.895 bn

1)

72.7

5.2

929

1.5

Cap. Expenditures(EUR bn)

6.3

EBIT (EUR millions) 2) 2,370

Employees (‘000)

237.1Employees (‘000)

52.0Cap. Expenditures(EUR bn)

0.7

EBIT (EUR millions) 2) 756

Employees (‘000)Cap. Expenditures(EUR bn)

EBIT (EUR millions) 2)

Employees (‘000)

88.2Cap. Expenditures(EUR bn)

0.4

EBIT (EUR millions) 2) 670

Revenues (EUR bn)

31.3Revenues (EUR bn)

11.7Revenues (EUR bn)

Revenues (EUR bn)

17.9

(DB 2008)(DB 2008)


CorporateFunctionsCorporateFunctions

ServiceFunctionsService

Functions

New Corporate Structure

Deutsche Bahn AG

InfrastructureEconomic andPolitical Affairs

Finance/Controlling Human ResourcesChairmanand CEO

DB Mobility Logistics AG

Business Units

DB Bahn Urban

DB BahnRegional

DB BahnLong-

Distance

DB Services

DB Schenker Logistics

DB SchenkerRail

DB NetzeTrack

DB NetzeStations

DB NetzeEnergy

Business Unit

DB Bahn Sales *

DB Netze Projects *

PassengerTransport

Transportation and Logistics

Finance/Controlling

Chairmanand CEO

Human Resources

and Services

* Service center

(DB 2008)(DB 2008)


15.5

23.024.0

25.1

30.1

2000 2003 2004 2005 2006

DB Schenker(~55%)

DB BahnDB Netze

(~45%)

31.3

2007

DB Group revenues show excellent growth, particularly in the logistics sector

DB Group Revenuesin € bn

DB Schenker’s revenues increased from € 3.8 bn in 2000 to € 17.9 bn in 2007

due to acquisitions and organic growth

Revenue DB Bahn and DB NetzeRevenues DB Schenker

(DB 2008)(DB 2008)


2007 was a very successful year for the Transportation and Logistics Division

Employee figures: average no. of full-time employeesSource: 2007 Annual Report

Land Transport Air/Ocean

Freight

Transport & Logistik - 2007

Contract Logistics/SCM Rail Freight Intermodal

Rail Freight Transport Integrated Logistics

3.9 (+2%)

59.328.9 Employees ('000)Employees ('000)

External revenues (€ bn)

14.0 (+5.9%)External revenues (€ bn)

External revenues (€ bn)

Employees ('000)

18 (+5.6%) 88.2EBIT (€ mn) 670

217EBIT (€ mn) 453EBIT (€ mn)

(DB 2008)(DB 2008)


DB Schenker is represented in over 130 countries at more than 2,000 locations worldwide

(DB 2008)(DB 2008)


Europe: ~75 %Germany France Sweden Netherlands

Austria Finland Poland Norway Italy UK Switzerland

Belgium Others

Asia-Pacific: ~14 %China Singapore Malaysia Thailand India Japan Philippines South Korea Indonesia Others

Australia New Zealand

The Transportation and Logistics Division has a global workforce of approximately 88,000 employees1)

Others > 1 % South Africa

Others

Americas: ~11 %USA Canada Brazil Mexico Chile Argentina

Others

1) full-time employees, as of 12/31/2007

(DB 2008)(DB 2008)


The Transportation and Logistics Division is managed by the Division Board

DB Schenker LogisticsDB Schenker Rail Freight

Transportation and Logistics Division Board

Intermodal Land Transport

Air/Ocean Freight

ContractLogistics/SCM

Rail Freight

CIOHuman

Resources Finance/

Controlling Chairman

Dr. JürgensDr. Kremper

Dr. Bensel

Nutzinger2 Dr. Lieb1 Dr. Trefzger

Reichel Wurst Schumann

1 Joint function as head of business unit and CEO

2 From 1 January 2009, up until 31 December 2008 temporarily headed by Dr. Trefzger

Strategy Transportation and Logistics - Marschall

Finance/Controlling Rail FreightAnslinger

Finance/Controlling LogisticsDr. Freytag

Communications – Dr. Lüssenhop

Division Control – Dr. Hoppe

International Affairs/Network Management - Dr. Wolff

peramanent observers on the Division Board

(DB 2008)(DB 2008)


The Transportation and Logistics Division in Figures (I)

312.8 million tons1) of rail freight transported by DB Schenker in 2007

more than 5,000freight trains each day

2,000,000new automobiles transported by rail transports each year

Approx. 60 percent of the transport performance is international

1) Gross tons

(DB 2008)(DB 2008)


The Transportation and Logistics Division in Figures (II)

more than 2,000company locations in some 130 countries worldwide

70 million shipments in European Land Transport in 2007

1.3 million tonsof air freight shipped by DB Schenker in 2007

1.5 million containers in global ocean freight

Correct as of: 31.12.2007

(DB 2008)(DB 2008)


Strategic Focus



2.


1.

4.

3.


100,000fewer truckloads daily on Europe’s roads, and

21,000 tons of CO2less each day as a result of DB rail freight services

33% reductionin specific energy consumption from 1990 to 2006 on rail freight services

DB generates sustainable transport and disconnects transport growth from environmental damage

Globalization

Climate Change

Deregulation

Megatrends in freight transport market

Source: Sustainability Report 2007

(DB 2008)(DB 2008)


Globalization is driving increasing internationaltransport flows and growth rates

Canada

USA

Western Europe

Japan

AsiaSouth America Africa

Near and Middle East

Eastern Europe

Source: McKinsey “Deutschland 2020“

Canada

USA

Japan

AsienSouth America

Africa

Near and Middle East

Eastern Europe

Australia/ New Zealand

Western Europe

USD 50 – 100 bn USD 100 – 300 bn

Scale equals relative share of world trade

USD 300 – 1,000 bn USD 1.0 – 1.2 trillion USD 1.2 – 2.0 trillion

USD 50 – 100 bnUSD 100 – 300 bn

Scale equals relative share of world trade

2005 – USD 13.5 billion1980 – USD 2.4 billion

Exports and trade flows

2005 – 13.5 Trillion USD1980 – 2.4 Trillion USD

(DB 2008)(DB 2008)


Traffic flows in seaport hinterland services in particular will have significantly increased by 2015

Rail growth – forecast for 2015 compared with 2004 to/from or through Germany

Berlin/Brandenburg

Austria

Switzerland

Legend> 5 trains/week> 12 trains/week> 25 trains/week

Hungary

Northern PortsWestern

Ports

Italy

W Lower Saxony

Denmark

Poland

Czech RepBavaria

Baden-Württembe

rg

Saxony

Saxony Anhalt

France

Slovakia

N

Forecast Western ports (Rotterdam, Antwerp,

Zeebrugge, Amsterdam) Growth 2004 - 15: approx. 12% trains/week

p.a. TOP 5: North Rhine-Westphalia, Austria,

Rhineland-Palatinate, Italy, Switzerland The top 5 will account for 79% of the total

volume by 2015

Increased Relocation of transport services to/from Austria handled by the Northern ports has been assumed

Forecast Northern Ports (Bremerhaven/Hamburg)

Growth 2004 - 15: approx. 13% trains/week p.a.

TOP 5: Bavaria, Czech Rep., Baden-Württemberg, Saxony, Poland

The top 5 will account for 67% of the total growth in volume by 2015

Rail growth2004-2015 in trains/week

Source: DB AG

> 50 trains/week> 100 trains/week

North Rhine-

Westphalia

HesseRhineland

-Palatinate

(DB 2008)(DB 2008)


DB Group has assumed a pioneering role in protecting the climate and continues to reduce its specific CO2 emissions

2005 Energy Saving Program

2020 Climate Protection Program

-25.9%

20062002

-20%*

-11.4%

1990

2020

Specific CO2 reduction

Specific CO2 reduction

*Expected specific CO2 reduction

(DB 2008)(DB 2008)


DB is the second largest transportation and logistics company worldwide

Top players in transportation and logistics worldwideRevenues in € bn

Kühne+Nagel

DHLLogistics

Union Pacific

BNSF Railways

YRC Worldwide

Ceva

CSX Corporation

SNCF

Nippon ExpressDistribution &

Transportation

Source: annual reports 2007; (1) End business year 03/31/2008, without ocean carriers

(1)

# 1 Rail freight transport in Europe

# 1 European land transport # 2 Global air freight # 3 Global ocean freight # 6 Global contract logistics

25.7

12.6

11.1

10.6

10.1

7.7

6.8

6.6

6.3

17.9

(DB 2008)(DB 2008)


Rail(Europe)

Contract logistics(Global)

Air freight (Global)

Land Transport (Europe)

Ocean freight (Global) + 8.0%

+ 7.5%

+ 5.4%

+ 6.2%

+ 2.4%

Performance of transportation and logistics market (CAGR 2007 - 2012)

Enormous growth opportunities, particularly in Asia

Liberalization and M&Aprocess in Europe will lead to more growth for DB

Excellent potential in Eastern Europe

Source: DB AG

All business units of DB Schenker operate in growth markets

(DB 2008)(DB 2008)


DB Schenker is very well positioned in all business units

Market position (€)

(1) DHL

(2) CEVA Logistics

(3) Kühne+Nagel

(4) Wincanton

(5) Ryder

(6)

Market position (TEU)

(1) Kühne+Nagel

(2) DHL

(3)

(4) Panalpina

(5) UPS

Market position (t)

(1) DHL

(2)

(3) UPS

(4) Panalpina

(5) Kühne+Nagel

Market position (tkm)

(1) Intermodal

(2) Trenitalia

(3) SNCF

(4) SBB Cargo

(5) RENFE

Market position (€)

(1)

(2) DHL

(3) DSV

(4) Dachser

(5) Geodis

Market position (tkm)

(1)

(2) PKP

(3) SNCF

(4) Trenitalia

(5) ÖBB/RCA

# 2 in global air freight

# 1 in European land transport

# 3 in global ocean freight

# 6 in global contract logistics

# 1 in European rail freight transport

# 1 in European combined transport

Source: 2007 Annual Report; UIC; 1) Air/Ocean Freight form one business unit

Rail Freight Intermodal Land Transport Air Freight1) Contract

Logistics/SCMOcean

Freight1)

(DB 2008)(DB 2008)


Strategic Focus



2.


1.

4.

3.


DB Schenker leads in European rail freight with

transport volumes of 99 billion ton-kilometers

With its own subsidiaries (in the Netherlands, Denmark, Switzerland, and Italy), shareholdings (Railion Scandinavia) and cooperation partners, DB Schenker’s rail freight unit is Europe‘s largest rail freight carrier

Single car transport services provide an open network system for the transport of complete individual wagonloads

Block train transport services provide large volume point-to-point flows of goods tailor-made to individual customer needs

Selected additional services (transshipment, plant shunting services, etc.) are also available

Customers are mainly from the iron and steel, chemical, consumer goods, automobile and construction materials industries

Rail Freight Business Unit

Rail Freight Transport

(1) Incl. Intermodal

Transport performance: 99 billion tkm(1)

International share: ~60%

Freight cars: approx. 100,000

Traction units: around 3,000

(DB 2008)(DB 2008)


Intermodal is the market leader for European combined transport services

Intermodal Business Unit

Rail Freight Transport

Transport performance: 26 billion tkm

Maritime share: ~40%

Load units carriedLoad units carried: 3.1 million

Intermodal is the market leader in European combined transport and together with its partners provides a Europe-wide rail network for combined transport services

Services are provided for containers, swap bodies and semi-trailers

Intermodal’s markets are pre- and post-carriage services to and from seaports (combined maritime transport) and transport services between land-based origin and destination points (continental combined transport)

Intermodal’s range of services: rail transport services in Europe in combined transport, trans-shipment and terminal services, provision of equipment, depot services and load unit-related services.

The business unit holds shares in the leading European operators

(DB 2008)(DB 2008)


DB Schenker is the market leader in land transport for European system-based services

DB Schenker is the market leader for Europe-wide groupage, part and full-load transport services

The Land Transport Business Unit operates the largest and densest land transport network in Europe

In addition to Europe-wide system-based transport services, the business unit also provides special services, such as removals or the transport of oversized loads

The Land Transport Business Unit stands out from others with innovative products and high quality

The Land Transport Business Unit can provide the entire range of logistics services from a single source in conjunction with the Air/Ocean Freight, Contract Logistics/SCM, Rail Freight and Intermodal business units

Land Transport Business Unit

Integrated Logistics

Consignments: 250,000 daily

Scheduled services: 32,000 daily

Locations: 720 in 40 countries

Vehicles/Units1): 41,000

¹) Trucks, swap bodies and trailers; incl. subcontractors

(DB 2008)(DB 2008)


DB Schenker is one of the world’s largest providers of air and ocean freight services

The Air/Ocean Freight Business Unit is # 2 in global air freight and # 3 in global ocean freight, and the market leader on trans-Pacific routes

Its core business is the operation of self-controlled networks

Global networks connect economic regions around the world

The focus of the business is in the automotive, consumer goods and electronics fields

Services include logistics support for international projects, trade fairs and events of every kind

Together with the Land Transport, Contract Logistics/SCM, Rail Freight and Intermodal business units, Air/Ocean Freight can provide the entire range of DB Schenker‘s logistics services from a single source

Air/Ocean Freight Business Unit


Air freight volume: 1.3 million t

Ocean freight volume: 1.4 million TEUs 1)

Own charter flights: 900 p.a.

Locations: 800 in more than 130 countries

¹) twenty-foot equivalent unit

(DB 2008)(DB 2008)


Contract Logistics/SCM Business Unit

DB Schenker is one of the leading providers offering global integrated logistics solutions

Core business areas are contract logistics and value-added services

Focus industries are automotive, high tech and electronics and consumer goods

Leading position in the automotive industry in Europe

Solutions are aligned with customer’s supply chains and include Sourcing Logistics, Production Supply Logistics, Finished Goods Distribution, After Sales Logistics and Supply Chain Logistics

Together with the Land Transport, Air/Ocean Freight, Rail Freight and Intermodal business units, Contract Logistics/SCM can provide the entire range of DB Schenker‘s logistics services from a single source


Warehousing space: 4 million m²

Locations: 500 in 58 countries

(DB 2008)(DB 2008)


Strategic Focus



2.


1.

4.

3.


Integrated transportation networks put DB Schenker in a perfect position…

Intermodal

Land Transport

Transportation networks

Ocean Freight

Air Freight

Contract Logistics/SCM

Excellent freight forwarding and logistics services…

...with a strong railway backbone

Rail Freight

(DB 2008)(DB 2008)


VAS1)VAS1)

Global account management team

Door-to-door, track and trace

Holistic management of supply chain

1) Value added services

…to offer integrated door-to-door solutions from a single source

(DB 2008)(DB 2008)


DB Group is decisively expanding its rail freight network along the main European transport corridors

European railway backbone

Leading rail freight network in Germany and Europe

Foreign activities in our own name or in collaboration with national railway companies

Tight linkage with our freight forwarding networks in land, ocean and air transport sectors

Corridors

Market leader Company-owned railway

Cooperation with partners

National wagon distribution

1) Based on revenues and ton kilometers(DB 2008)(DB 2008)


1) PKP – Polish RailwaysRZD – Russian Railways BC – Belarus Railways

DB activities

Railways connection to Russia Misc. Joint Ventures (JV) between DB,

PKP, RZD and BC1) for product optimization and container transports

1

Connection of transrussian corridors

Cooperation with MoR2) and RZD Partnerships with relevant regional

operators

National Intermodal Container Terminal Network

Build-up of DB railways competences in China

Project Cargo terminals India Cooperation process with Indian Railways

1

3

4

Russia/ CIS

China

1

3

4

2) MoR – Chinese Ministry of Railways

…and already today we are busy building an attractive rail connection to China

(DB 2008)(DB 2008)


The Transportation and Logistics Division’s aim

is to leverage cross-business unit potential

Fully integrated sector solutions

Integrated services/products

Integrated sales for major customers

Further development of cross-business unit solutions for key sectors

Automotive Chemical/Pharmaceutical

Advance integrated services and position them on the market. Examples: Rail Logistics, seaport hinterland services and combined transport solutions, railports…

Key account management to develop cross-selling potential between rail freight and Integrated Logistics

1

2

3

Air/OceanFreight

Rail Freight

Inter-modal

Land Transport

ContractLogistics/

SCM

Rail Freight Transport Integrated Logistics

Electronics FMCG

Transportation and Logistics Division

(DB 2008)(DB 2008)


Additional key focus is on linking up carriers in multimodal projects

Pre-carriage by air freight Warehousing in Hong

Kong Coordination of production

call-offs Distribution of component

supplier parts

Operation of a supplier-controlled warehouse /

pre-carriage by air freight

Organization of trimodal logistics chains from Germany to Finland by Railion

Continuous distribution of electrical steel sheet on industrial pallets

Organization of trimodal logistics chains

Management of complete transport chains for automotive customers from Europe to South Africa using Schenker Supply Net Solutions

Management of complete transportation chains from Europe to

South Africa

Bremerhaven

Bremerhaven – Port Elisabeth

Automotive Supplier Park (South Africa)

Europe

Pre-carriage (road/ rail)

Packing center

Ocean freight

Import/post-carriagePort Elisabeth -

Rosslyn

(DB 2008)(DB 2008)


DB Schenker provides complex services for the automobile industry along the entire logistics chain

DB Schenker handles spare parts logistics from Europe to Singapore with final distribution to South-East Asia

DB Schenker links up traditional freight forwarding services (road, rail, ocean and air freight) with complex logistics services

By offering integrated solutions, DB Schenker is establishing long-term customer relations

AsiaEurope

A case in point: Automotive Industry

(DB 2008)(DB 2008)


DB SCHENKERchem-solution – the sector-specific product for the chemical and petrochemical industry

Links the key chemical and petrochemical locations in Germany and, on an

international scale, the ports of Rotterdam and Antwerp

Cross-border tracking & tracing with proactive customer information

Quota booking and targeted car control and prioritization

Continuous, cross-border shipment monitoring

In the event of delays, proactive information on deviations and expected time of arrival

Punctuality and security are key factors when dealing with highly sensitive hazardous goods – achieved with targeted car control and prioritization

DB SCHENKERchem-solution is particularly suited to time-sensitive shipments with overnight services on selected routes

(DB 2008)(DB 2008)


DB Schenker realizes integrated transport solutions for a car manufacturer (AlbatrosExpress)

A joint transport solution operated by DB Schenker, Transfracht and DB Intermodal has connected a car manufacturer’s warehouses in Germany with their assembly plant in Russia since 2007.

Pre- and post-carriage between locations in Germany and the maritime connection to Russia take place via rail.

Advantages of the innovative concept include a significant reduction in transit time and the concurrent increase in supply safety.

In addition to these main transport flows, TFG’s wide-area transport network in Germany, Austria and Switzerland can also integrate other sites into the logistics concept at short notice.

&Intermodal

AlbatrosExpress

(DB 2008)(DB 2008)


Warehousing Planning and

coordination of procurement chain

Cross-docking Customs clearance

DB Schenker provides long-term logistics solutions for our customers’ complex supply chains

Distribution logistics

Warehousing Plant logistics Production supply

and disposal PackingC

ore

serv

ices

Warehousing Spare parts depots Return management

coordination Diagnostics of

returns

Warehousing and cross-docking

Planning and coordination of distribution chain

Distribution of goods to retailers or final customers

Packing Customs clearance

Sourcing Logistics

Supply Chain Management

Production Supply Logistics

Finished Goods

Distribution

(DB 2008)(DB 2008)


A case in point: Bombardier-Rotax

Order entry

Source: DB Schenker

Delivery and scheduling of

shipmentsGoods inward

Labeling and storage

SAPSAP

Delivery to final customer

Packing of products

Storage of finished goods

Kanban-based supply of spare

parts

“Just-in-time” production

Quality control/ development of

balanced score cardsDB Schenker manages

all logistics activities from supplier to final

customer

(DB 2008)(DB 2008)


Current highlights

DB SCHENKER- skybridge: Air freight between

Dubai and Toledo (USA) has doubled

Central Key Account Management for

major clients

Official provider of freight forwarding

and customs clearance services for

the 2008 Olympics

Successful test run on the Eurasian

Landbridge

EWS is expanding intermodal routes

through the Channel Tunnel

Operator Railion Scandinavia is

expanding single wagon transport

Participating in joint venture in China,

and construction of container terminals

(DB 2008)(DB 2008)

Berlin, August 2008

Deutsche Bahn

Ressort Transport und Logistik

The Transportation and Logistics Division of Deutsche Bahn

Documents

1DB Schenker, August 2008 Berlin, August 2008 Deutsche Bahn Transportation and Logistics Division The Transportation and Logistics Division of Deutsche