strategy of deutsche bahn group · deutsche bahn ag / db mobility logistics ag cfo dr. richard lutz...

September 2010

Deutsche Bahn AG / DB Mobility Logistics AG

CFO

Dr. Richard Lutz

Strategy of Deutsche Bahn Group

Beijing – Tokyo – Hong Kong – Singapore

Deutsche Bahn AG Road Show Asia 20102

Rail system in Germany

Infrastructure

Transport and LogisticsPassenger Transport

DB Group’s fundamental concept

Strategy

Thinking beyond railway in Germany as key to success


171 174191

171

388

327

299

261239

221206

194184 177 173

149 154 154

135127

140139 144 145 149

159 159 153 155 160 161164

154151

720

820863 860

893

975

328

656

413468

533603

1,042

1,1331,167

1,247

1,106

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Ptkm (bn) Employees - rail (thd, year average) Productivity

1.7

2.52.4

0.5

1.0

1.4

2.1

-0.4-0.7-0.8

-1.5-1.7

-2.1-2.2

-2.7-3.0

5.7%7.4%7.6%

-20.3%

-17.5%

-14.6%-13.3%

-11.1%-9.8%

-5.0%-4.6%

-2.2%

7.1%

5.4%4.0%

1.6%

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

EBIT adjusted EBIT-Margin

Productivity – rail (thousand ptkm/employee)

EBIT adjusted and adjusted EBIT-Margin (€ bn or %)

Track record – Operational turnaround after German Rail Reform

Balanced Group portfolio helped us through the crisis

1993-2009: +237%CAGR: +7.9%

1994-2009: € +4.7 bnPer year: € +310 mn

Figures until 2004 FY according to German GAAP


2001 2002 2004 20052003 2006

StinnesJoyau

BAXStarTrans

RAG BahnLinjegods

Deutsche Eisenbahn-

reklame

BrenntagInterferMitropa

DSB Gods

Rail

2007

EWSSpain-Tir

ScandlinesAurelis

Nuclear CargoAcquisition

Sale

2008

TransfesaChiltern

RomtransWBN Niesky

Arcor

Non Rail 9%

91%

Non Rail

48% 52%

Rail

Gro

up

p

rog

ram

sP

ort

folio

ch

ang

es

…

Track record – Driver of changes in DB Group

Track record driven by restructuring programs and portfolio measures

2009

PCC

2010

“Fokus”Restructuring of core business

“Qualify”Improve performance Coping

with the crisis

NordCargoArriva

Rev

enu

e sp

lit

Driver of changes in DB Group

Non Rail

43% 57%

RailRailNon Rail

31%

69%

2001 2003 2006 2009Non Rail

47% 53%

Rail2008

SDS


Capex and financing (€ bn)

84

14

55

DB funds

118Total

Infra-structure

15

34 33Other

Investmentgrants

Interest-freeloans

1994 - 2009

FinancingCapex

Other grants

DB funds

(71%)

(29%)

15.015.916.519.719.5 19.6

0.9

0.30.30.8

1.51.5

2004 2005 2006 2007 2008 2009

Financial debt (as of Dec 31, € bn)

20.3 20.0 19.918.1

16.8 16.5

€ -3.8 bn

Net: € -4.5 bn

Figures until 2004 FY according to German GAAP

Track record – Capex campaign and deleveraging

Despite high capex volume significant reduction of net financial debt


DB AG and DB ML AG act as management holding companies

Vertically integrated Group structure

Ratings: Aa1 / AA / AA

EBIT adjusted (€ bn)

ROCE (%)

Gross capex (€ bn) 6.51.7

5.9

Total assets (€ bn) 47.3EBITDA adjusted (€ bn) 4.4

Revenues (€ bn) 29.3

# 1 European rail freight transport# 1 European land transport# 2 Global air freight# 3 Global ocean freight # 5 Global contract logistics

# 2 rail passenger transport in Europe# 2 regional and local public transport in Europe# 1 bus transport in Germany

Structure

Focused Group portfolio with three divisions

DB Group (2009)

Total revenues 12,406

EBIT adjusted 1,111

Capital expenditures

Employees (as of Dec 31)

%

42

66

8

22

2009 € mn

511

52,683

Longest rail network in Europe353 railways utilizing German track infrastructure, thereof 323 non-Group railways

EBITDA adjusted 2,057 47


EBIT adjusted 10



%

52

1

8

38

2009 € mn

515

91,279

EBITDA adjusted 478 11


EBIT adjusted 878



%

26

52

82

19

2009 € mn

5,276

46,529

EBITDA adjusted 1,996 45

Employees (as of Dec 31) 239,382Net profit (€ bn) 0.8

Excl. DB Services and Other/consolidation


Long-term objectives and strategic directions

Further improve leading market positions

Expand and interlink transport networks worldwide

Improve quality and customer satisfaction

Permanent focus on cost efficiency

Sustainably increase profitability

Transport networks

Strategy

Vision and strategic directions

Our vision: The world’s leading mobility and logistics company


Strategy

Mega trends remain driver of long-term growth in our markets

Mega trends in the transport markets

Emerging growth markets in Asia and Eastern Europe

Increasing level of outsourcing

Growing global flow of goods in the long run

Rising customer sensitivity for climate change

Transport sector as a key driver of CO2

emissions

Increasing prices for fossil fuels

Diverging regional development

Increasing urbanization

Increasing mobility in career and private life

Aging population

Further liberalization of rail transport in Europe

Growing pressure on public budgets

Continued outsourcing of public responsibilities

Globalization Climate change and resource shortage

Liberalization Demography


We operate six different transport networks with a German, European or global reach

Long-distance transportDense polycentric network allows fast, interconnected and comfortable passenger transportRegional and urban transportRegional and urban transport networks offer attractive alternatives to car travelRail freightNetwork ensures integrated cross-border rail freight servicesRail infrastructureThe biggest, most significant and challenging rail infrastructure in EuropeLand transportThe most comprehensive hub network in Europe enables fast and reliable regular pan-European deliveryAir / ocean freightGlobal network enables one-stop shop logistics solutions

Long-distancetransport

Air / oceanfreight

ORDTOL

ATL JFK

MOW

HKGDXBPVGNRT

ICN

LAX

MIA

SAOJNB

MILVIECDG

LHRAMS

OSL STO

WRO

MAD

MEL

SIN

DFW

FRA

Rail freightLand transport

Regional and urban transport

Rail infrastructure

Aarhus

Prague

WarsawWroclaw

Krakow

Vienna Budapest

Italy

Paris

Amsterdam Szczecin

Zagreb

Poznan

Basel

Klagen-furt

Belgrade

Zurich

Copenhagen

Brussels

London

Marseille

Lyon

Aarhus

Prague

WarsawWroclaw

Krakow

Vienna Budapest

Italy

Paris

Amsterdam Szczecin

Zagreb

Poznan

Basel

Klagen-furt

Belgrade

Zurich

Copenhagen

Brussels

London

Marseille

Lyon

Strategy

Our core competence: development and operation of integrated networks


Advancinginternationalization

Expanding cross-border long-distance servicesDeveloping new international markets in regional transport

Offering mobilitysolutions

Attracting new customers with innovative services and productsMarketing travel chains

Further developing corebusiness

Safeguarding and expanding today's core businessIncreasing punctuality, quality and service

DB Bahnʼs strategic approach

Markets

Core Business

Pro

du

cts

/ Ser

vice

s

Strategy

Passenger Transport – strategic directions

Strategic rationale of acquisition deepened in the following


3.3

5.8

1.5

1.1

0.9

0.3

0.2

1.8

Strategy

DB Bahn: great chances abroad, but small European footprint (prior to Arriva)

Revenues in regional transport outside of the respective home market (2009, € bn)

DB Bahn after

acquisition of Arriva:

~3.4

#2

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

Market opening by European countries

Advanced

On Schedule

Delayed

Pending departure

Source: Liberalization Index Rail 2007, EU

Not relevant

Europe (excl. domestic) APAC America Other

100%

69%

93%

55%

100%


UK

Revenues: € 2.0 bn3rd in bus and rail

The Netherlands

Revenues: € 0.3 bn 3rd in bus and rail

Iberia (Portugal, Spain)

Revenues: € 0.2 bn3rd in bus in Portugal; Spain: n.a.

Scandinavia (DK, SWE)

Revenues: € 0.5 bnDK: 2nd in rail / 1st in busSWE: 5th in bus / 4th in rail

Germany

Revenues: € 8.6 bn 1st in rail and bus

Eastern Europe

Revenues: € 0.1 bn4th in bus in CZ; PL, HU, SL: n.a.

Italy

Revenues: € 0.2 bn1st in bus

Strong combined market positions

Corporate profile of Arriva

Three divisions: UK Bus, UK Trains, Mainland EuropeGeographical diversification with strong position in continentalEurope, activities in 12 countriesBalanced revenue-mix (2009): Bus (64%) and rail activities (36%);UK (51%) and Mainland Europe (49%)Fleet of 14,800 buses and 587 train-sets; Employees: 42,300Order book of GBP 12.2 bn (as of Dec 31, 2009)

Current status

June 17, 2010: General meeting of Arriva agreed cash offer with 90.4% of votesAugust 11, 2010: European Commission granted phase I clearenceAugust 27, 2010: Completion date and delistingCommitment of DB to divest German business

Key financials (GBP mn) 20092008200720062005

EBITDA

Revenues

330

3,042

324

3,148

249

2,001

229

1,695

207

1,540

EBIT 172 160128117109

Capex 264 288233167247

Net financial debt 967 988

Strategy

Arriva and DB – a “merger for growth” to utilize opportunities in Europe


Solid financial position, sustainable profit growth

Investment highlights

DB Group combines stability with a good position for future growth

Key investment highlights

Strong track record since 1994

Leading market positions in all relevant markets

Core competence in managing transport networks

Balanced business mix of growth and value

Mega trends support our future growth potential

Unique geographic position in the heart of Europe

Passed “stress test” in 2009

September 2010

Deutsche Bahn AG / DB Mobility Logistics AG

Group Treasurer,Head of Mergers & Acquisitions

Wolfgang Reuter

Frankfurt – Amsterdam – Paris – Zurich – Milan – Munich – London – Edinburgh

Financial Development 2009 and H1 2010Capital Market Activities



1.7

2.52008

2009 4.4

5.22008

2009 15.0

15.92008

2009 5.9

8.92008

2009

Unprecedented economic crisis hit the economies and companies worldwideAdditional capex volume of € 1.3 bn for the German rail infrastructure due to economic stimulus packagesGroup-wide countermeasure program reACT with a positive EBIT-effect of € 0.6 bn DB Group was the only European railway that remained in the black in the 2009 financial year

Highlights

Revenues (€ bn)

EBIT adjusted(€ bn)

Net financial debt (as of Dec 31, € bn)

ROCE(%)

2008

2009

EBITDA adjusted(€ bn)

2009 financial year – At a glance

Positive result despite historical economic crisis

-5.8%-15.4%-32.1%-12.3%

33.5

29.3


2009 financial year – Market trends

Stable development in core market Germany

Rail freight transport - DB Schenker (2009)

Passenger transport – German market Rail freight transport – German market

2,708 +0.6%Passengers (mn)

Passenger transport - DB Bahn (2009; bus and rail)

86,033 -1.1%Volume sold (mn pkm)

45.1 -Capacity utilization (long-distance; %)

341 -10.0%Freight carried (mn t)

93,948 -17.3%Volume sold (mn tkm)

484 -0.9%Capacity utilization (t/train)

Growth rates 2009 (%) Market share

2009

DB Bahn (rail) Market: -0.2%Rail: -1.2% 9.2% -0.1

Motorized individualtransport

79.1% +0.1

Public road transport 9.7% -0.1

Air 1.3% -

Non-Group railways 0.7% -

1

-1.6

+0.0

-0.5

-3.6

+4.6

Growth rates 2009 (%) Market share

2009Chg.

(%-points)

DB Schenker Rail 12.3% -1.4

Road 71.9% +1.2

Waterway 9.1% -0.5

Non-Group railways 4.0% +0.3

Pipelines 2.7% +0.4Market: -11.7%Rail: -17.3%

1

-20.8

-10.2

-16.2

-4.4

2.6

Chg. (%-points)


2009 financial year – Market trends

Significant downturn in European and global transport and logistics markets

European rail freight market (based on tkm) European land transport (based on €)

Global ocean freight (based on TEU) Global air freight (based on t)

No. 1 in EuropeNo. 1 in Europe Growth rates (2009) No. 1 in Europe Growth rates (2009)No. 1 in Europe

No. 3 worldwide Growth rates (2009) No. 2 worldwide Growth rates (2009)

DB Schenker Market

2009 2008

137 169

5.05 6.33

3.7 3.7

Market (€ bn)

DB Schenker (€ bn)

Market share (%)

-20%

-19%

2009 2008

16.7 19.0

1.03 1.23

6.2 6.5Market share (%)

Market (mn t)

DB Schenker (mn t)-16%

-12%

2009 2008

28.8 31.7

1.42 1.45

4.9 4.6

-2.1%

-9.0%

2009 2008

386 482

93.9 114

24.4% 23.6%

Market (bn tkm)

DB Schenker (bn tkm)

Market share (%)

-17%

-20%

Market (mn TEU)

DB Schenker (mn TEU)

Market share (%)


3.4x3.1x3.2x3.9x

4.8x

2005 2006 2007 2008 2009

19.422.521.1

18.614.7

2005 2006 2007 2008 2009

ROCE (%)

Redemption coverage = operating cash flow ÷ adjusted net financial debt

Redemption coverage (%)

Gearing (%) Net debt/adjusted EBITDA

5.9

8.98.77.5

5.0

2005 2006 2007 2008 2009

256213

151 131 115

2005 2006 2007 2008 2009

ROCE = EBIT adjusted ÷ capital employed

Gearing = net financial debt ÷ equity capital Net debt/EBITDA = net financial debt ÷ EBITDA adjusted

Target 10%

WACC bef. tax. 8.9%

Target 30%

Target 100%Target 2.5x

2009 financial year – Value management

Drop in value management figures except for gearing


14.9

15.0H1 2009

H1 20102.2

2.0H1 2009

H1 2010846

671H1 2009

H1 2010 5.9

4.8H1 2009

H1 2010

14.3

16.1

H1 2009

H1 2010

DB Group is back on growth path in terms of volumes and revenues

DB Group showed improving profitability

DB Group was able to further reduce net financial debt

DB Group’s financial situation is stable and reliable

DB Group’s very good credit ratings are unchanged

Highlights

Revenues(€ bn)

EBIT adjusted(€ mn)

Net financial debt(€ bn)

ROCE(%)

EBITDA adjusted(€ bn)

H1 2010 – At a glance

Significant improvement of all key financials in H1 2010

+12.8% +26.1% +10.2% -1.0%


1,454 1,424

650721800

2008 2009 2010

1,2291,032

587456

630

2008 2009 2010

72.8 70.1

39.434.437.3

2008 2009 2010

113.693.9

52.644.3

59.3

2008 2009 2010

77.8 76.8

38.137.4 37.3

2008 2009 2010

-27.5% +28.6%


Strong increases in T&L business, but rail freight still below pre-crisis level

Volumes sold – Rail passenger transport(bn pkm)

Volumes sold – Rail freight transport (bn tkm)

Volumes sold – Land transport(mn shipments)

Volumes sold – Air freight(thousand t)

Volumes sold – Ocean freight(thousand TEU)

-0.1% +2.0%

-7.9% +14.6%-9.8% +23.1%

-25.3% +18.8%H1 H1 H1 H1 H1 H1

H1 H1 H1 H1 H1 H1 H1 H1 H1


+87+1,63814,272

-60+165 16,102

H1 2010 – Revenues

Revenue increase mainly in transport and logistics

Revenues (€ mn)

H1 2009Transport

and LogisticsPassenger Transport

Infra-structure

H1 2010

Remarks

Significant volume increase in transport and logistics

Positive impact from higher volume sold in passenger transport

Increases in infrastructure business from higher non-Group demand, price adjustments and expansion of energy services business

Effects from key acquisitions: +€ 110 mn (exclusively due to inclusion of DB Schenker Rail Polska)

Effects from currency exchange rates : +€ 241 mn(mainly DB Schenker Logistics)

Other/Con-solidation

+12.8%


Revenue split (divisions) H1 2010

38%

1% 6%

55%

5%6%1%

65% 23%

Germany

Europe(excl. Germany)

North America

Asia/Pacific

Rest of World

DB Bahn

DB Schenker

DB Netze

(H1 2009)

(51%)

(42%)

(6%)(1%)

Other

(69%) (21%)

(<1%) (5%)

(5%)

Revenue split (regions) H1 2010

(H1 2009)

Revenue split (activities) H1 2010

Rail Non-rail

(H1 2009)

54% 46%(43%)(57%)

H1 2010 – Revenue split

Shift in revenue structure in favor of transport and logistics


48929

1,160

671

846 875

H1 2010 – Profit development

Significant lower volume of special items than in H1 2009

in Mrd. €EBIT and EBIT adjusted (€ mn)

EBIT Special items EBIT adjusted

H1 2009 H1 2010

Special items EBIT

Special items

H1 2010Special items mainly due to partial reversal of provisions for technical risks H1 2009Special items mainly due to project Stuttgart 21

-24.6%

+26.1%

Net profit

Lower volume of special items had a negative impact on net profit as well:H1 2010: € 392 mn

(€ 547 mn) -28.3%


Balance sheet structure (as of Jun 30, 2010)Gross capex (€ mn)

H1 2010 – Balance sheet

Further reduction in net financial debt

Equity and liabilitiesAssets

Non-current assets83.5% (87.3%)

Current assets 16.5% (12.7%)

Equity27.7% (27.6%)

Pension prov.3.6% (3.7%)

€ 49.3 bn(€ 47.3 bn)

Total€ 49.3 bn(€ 47.3 bn)

Total

Financial debt35.8% (34.9%)

Other provisions13.1% (13.6%)

Financial debt (€ mn)

15,94315,011

Dec 31, 2009 Jun 30, 2010

15,011 14,860

1,499 2,788

16,51017,648

Net:

+6.9%

-€ 151 mn

H1 2009 H1 2010

2,3762,502

923 865

Net:

-6.3%

+5.3%

Other19.8% (20.2%)


1.4

1.7

2.0

0.5

1.31.1

1.3 1.3

1.9 1.9

0.80.7

0.8

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Other8% Bank

7%

EUROFIMA8%

CP10%

Bonds MTN67%

Ratings

Very good ratings:Moody’s: Aa1/stable S&P: AA/stableFitch: AA/stableRatings confirmed in 2010

Major refinancing activities

Total volume in 2009: € 2,100 mnTotal volume in 2010: € 1,200 mn (as of August 31, 2010)

€ 200 mn EUROFIMA loan with a 4.00% coupon drawn in January, 12 years € 500 mn bond with a 3.50% coupon issued in June, 10 years€ 500 mn bond with a 3.75% coupon issued in July, 15 years

€ 14.8 bn(as of Jun 30, 2010)

Interest-bearing debt (%)

Maturity profile of financial debt (as of Jun 30, 2010; € bn; incl. underlying swaps)

Debt and financing

Rating and financing activities

Bonds Eurofima EIB

Currency structure MTN-program

CHF3%

JPY6%

USD12%

HKD1%

EUR78%

Federal loans Leasing (as of Jun 30, 2010)


Obligationsof the Federal Republicof Germany

Federal obligations resulting from Art. 87e German Constitution

- „Infrastructure obligations“: High share in funding of infrastructure capex, amounting to around € 2.5 bn p.a. (replacement capex)

- „Public interest obligations“: Federal states receive funds for ordering local passenger transport services, amounting to around € 6.7 bn p.a. (increasing by 1.5% p.a. until 2014)

- Privatization threshold: Up to 49.9% of shares to be privatized due to constitutionally mandated Federal majority shareholding („ownership clause“)

Significantresponsibility

DB guarantees overall mobility in Germany and is Europe‘s largest company providing integrated mobility, transport and logistics services.

Operatingperformance

Stable cash flow due to long-term service contracts with Federal states (2009 revenue share: 15%) – order book of € 28 bn, Arriva: GBP 12 bn, aggregated amount: about € 42 bn

Vertical integration as a major factor for business success

Productivity improved by 237% (workforce reduction in rail business by approx. 240,000 since 1994, EBIT increased by € 4.7 bn (€ 310 mn p.a.), EBITDA increased by € 6.4 bn (€ 430 mn p.a.) and total capex of € 118 bn since the 1994 German Rail Reform

Very good ratings

Ratings: Moody’s (Aa1) / S&P (AA) / Fitch (AA)

Profitable business development since 2004 even in 2009

Stable financial profile despite crisis, sound financing structure and conservative funding strategy

Debt and financing

Focus on credit quality


€ mn 20102009

ROCE

Gross capex

Revenues -comparable

EBIT adjusted

DB Group – Outlook 2010 financial year (as of July 2010)

5.9%

6,462

29,335

1,685

2010 financial year – Outlook

Noticeable positive development in 2010 financial year expected

Increase expected due to recovery of economy and volumes

Higher increase of revenues compared to operating expenses expected, dampening effects from pressure on margins

Slight improvement expected due to increase in adjusted EBIT, but higher capital employed

Modernization process should continue on a higher level

Net financial debt 15,011 Increase due to Arriva acquisition expected (decline excluding Arriva)

This outlook is still subject to substantial caveats regarding continuing uncertainties from to the economicdevelopment and is based on the following assumptions:

Continuing of the economic recovery that started in 2009Positive effects from economic development in Germany and the Euro-AreaRecovery of the German rail freight market after significant reductions in volumes in 2009Growth of the global air and ocean freight markets

APPENDIX



Comments

Integrated Group structure with two holding companies (DB AG and DB ML AG) and 9 business units

DB AG is 100% owned by the Federal Republic of Germany

Privatization threshold: constitutionally mandated Federal majority shareholding in DB AG („ownership clause“)

Infrastructure business units are directly managed by DB AG

DB ML AG operates as a holding company for DB Group’s passenger and logistics activities

Current Group structure was established in 2008 for privatization purposes

DB Bahn Long-

Distance

Deutsche Bahn AG

DB Netze Track

DB Netze

Stations

DB Netze

Energy

DB Bahn Regional

DB BahnUrban

DB Schenker

Rail

DB Schenker Logistics

DB Services

DB Mobility Logistics AG

DB ML Group

DB Group

Overview

Structure

Organizational structure (prior to integration of Arriva)


Advance core businessImprove productivity and quality Optimize margins and costsIncrease utilization Standardize products and processes

Expanding integrated offers

Integrated road-rail solutionsGreen logistics Integrated solutions for specific industries

DB Schenker’s Strategic Approach

Core businesses

Strengthen networksIntegrate acquisitionsConnect international networksExtend presence and market shares

Pro

du

cts

/ Ser

vice

s

Markets

Strategy

Transport and logistics – strategic directions


Strategy - Expand

DB Schenker Rail consequently built up its European network

Acquisitions (fully consolidated as of Dec 31, 2009)

NL NS Cargo (2000, 98%)DK DSB Gods (2001, 51%)IT Strade Ferrate del Mediterraneo

(2004, 100%)DE RBH Logistics (2005, 100%)CH Brunner Railway Services (2007, 98%) UK/FR EWS / ECR (2007, 100%)ES Transfesa (2008, 51%)PL PCC (2009, 98%)IT NordCargo (2009/2010, 60%)

Joint ventures

BE Cobra (49%)CH BLS Cargo (45%)DK/SE Railion Scandinavia (98%)IT Rail Traction Company (4,5%)

Rail freight network of DB Schenker

South-west

West

North-west

North

East

South-east

South

International Corridors

RegionalNetwork


Strategy - Expand

DB Schenker Logistics operates leading networks in its markets

MIANYC

LAX

DXB

RTMHAM

GOTLON

MSL MIL

HKG

SIN

SHABUS

TYO

KEE

EMEA APAC

Americas

National Gateway

Europe

Americas APAC

DB Schenker Logistics land transport terminals

DB Schenker Logistics land transport Eurohubs(Friedewald, Malmo, Paris, Salzburg)

Air

fre

igh

t

Land transport: 720 branches in 38 countries

Oce

an f

reig

ht

International presence in more than 130 countries

International Hub


Linkage of European land networks (road-rail)

- Intermodal transport (containers)

- Railports (single wagon transport)

Feeder and follow-up for air and ocean freight by road or rail transport- Seaport hinterland

- Road feeder services

Increase volumes of inter-European shipments- By generating more business with

European customers

- Via new business with American and Asian customers

America

Asia

Strategy - Integrate

European land networks benefit from DB Schenker’s global presence

DB Schenker networks



Positive performance development, especially in transport and logistics

Train-path demand Train kilometers (+2.9%) Share of non-Group railways from 16.7 % to 18.6 %

Station stops Stops (-0.4%)

Total volume sold (+2.0%)

DB Bahn Long-Distance Volume sold (+3.8%)

DB Bahn Regional Volume sold (+0.5%) Volume produced (-0.8%)

European market (tkm) +18.8% >10%2)

DB comparable3) +14.9% German market (tkm) +14.6% >3%

Market1), 2)DBVolume sold

Land transport (shipments) +14.6%

Air freight (t) +28.6% >20%Ocean freight (TEU) +23.1% >15%

Markt1)DB1)Volume

1) Preliminary DB estimates; 2) Only rail transport; 3) Excluding DB Schenker Rail Polska

Volume sold (+2.9%) Volume produced (+3.7%)

Change H1 2010 vs H1 2009

Rail

Bus

DB Schenker Rail



H1 2010 – Revenues

Revenue growth in almost all business units

Change by business units(€ mn)

DB Group

Total revenues(€ mn)

DB Bahn Urban


DB Netze Track

DB Netze Stations

DB Netze Energy

DB Bahn Long-Distance

DB Bahn Regional

Other

DB Services

DB Schenker Rail

16,102

H1 2010

634

6,746

2,198

524

1,230

1,828

3,753

352

557

2,268

H1 2009

14,272

617

5,477

2,126

512

1,149

1,729

3,782

341

575

1,899

Consolidation -3,988 -3,935

+99 +5.7%

-29 -0.8%

+17 +2.8%

+369 +19.4%

+1,269 +23.2%

-18 -3.1%

+72 +3.4%

+12 +2.3%

+81 +7.0%

+11 +3.2%

-53 +1.3%

+1,830 +12.8%


Revenues

Adjusted P&L (€ mn) Driver

EBITDA adjusted +203

Financial result -111

Profit before taxes -395

Total income +1,939

Net profit -155

Taxes on income +240

+1,830

Depreciation -28

Revenue increase due to higher volumes in transport and logisticsInclusion of DB Schenker Rail PolskaIncrease in purchased services (cost of materials) driven by volumes and prices Additional burdens due to higher maintenance expenses for busses, trains, wagons and rail infrastructure


Income increased stronger than expenses

H1 2009

1,994

-396

764

16,124

547

-217

14,272

-1,323

H1 2010

2,197

-507

369

18,063

392

23

16,102

-1,351

abs. %

+/-

+10.2

+28.0

-51.7

+12.0

-28.3

-

+12.8

+2.1

Cost of materials -1,617-7,199-8,816 +22.5

Personnel expenses -66-5,377-5,443 +1.2

Other operating expenses -53-1,554-1,607 +3.4

EBIT adjusted +175671846 +26.1

Extraordinary result -45948930 -93.9


+175

+48

-14

-6

+17

+73

+102

-28

-36

+23

Change by business units(€ mn)

DB Group

EBIT adjusted(€ mn)

DB Bahn Urban


DB Netze Track

DB Netze Stations

DB Netze Energy


DB Bahn Regional

Other/Consolidation

DB Services

DB Schenker Rail

671

55

37

243

127

54

57

456

-294

57

-121


Differentiated EBIT development on business unit level

846

27

110

237

123

40

80

420

-246

74

-19

H1 2010

H1 2009

+40.4%

-7.9%

-50.9%

-

+197%

+29.8%

-2.5%

-4 -3.1%

-25.9%

-

+26.1%


H1 2010 – Capital expenditures

Gross capex spending continued on a high level

DB Group

By business units H1 2009

DB Bahn Urban


DB Netze Track

DB Netze Stations


DB Bahn Regional

Other/Consolidation

DB Netze Energy

2,376

22

85

1,594

104

21

280

7

36

+126

-

-24

+327

+32

-8

-165

-3

-4

Gross capital expenditures (€ mn)

DB Schenker Rail 172 -25

2,502

H1 2010

22

61

1,921

136

13

115

4

32

147

DB Services 55 -451

+5.3

-

-28.2

+20.5

+30.8

-38.1

-58.9

-42.9

-11.1

-14.5

-7.3

abs. %

+/-

H1 2009 H1 2010

2,3762,502

923 865

Net:

-6.3%

+5.3%


Contacts

DB road show team

Dr. Richard LutzCFO

Wolfgang ReuterGroup Treasurer, Head of Mergers and Acquisitions

Tel.: +49 30 297-64300

[email protected]

Address

Deutsche Bahn AG/

DB Mobility Logistics AG

Europaplatz 1

10557 Berlin

Germany

Internet

www.deutschebahn.com/ir

www.deutschebahn.com/ir-dbml

Robert Allen StrehlHead of Investor Relations

Tel.: +49 30 297-64030

[email protected]

Martin MaschSenior Manager Investor Relations

Tel.: +49 30 297-64033

[email protected]

Hartwig SchneidereitHead of Capital Market Financing

Tel.: +49 30 297-64010

[email protected]

Ute HaasCapital Market Financing

Tel.: +49 30 297-64007

[email protected]


Appendix

Disclaimer

This information contains forward-looking statements or trend information that are based on current beliefs and estimates of Deutsche Bahn AG’s/DB Mobility Logistics AG´s management and involves known and unknown risks and uncertainties. They are not guarantees of future performance. In addition to statements which are forward-looking by reason of context, including without limitation, statements referring to risk limitations, operational profitability, financial strength, performance targets, profitable growth opportunities, and risk adequate pricing, as well as the words "may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, or continue", "potential, future, or further", and similar expressions identify forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties that could cause the Company's actual results or performance to be materially different from those expressed or implied by such statements. Many of these risks and uncertainties relate to factors that are beyond Deutsche Bahn AG’s/DB Mobility Logistics AG´s ability to control or estimate precisely, e.g. future market and economic conditions and the behavior of market participants. Deutsche Bahn AG and DB Mobility Logistics AG do not intend or assume any obligation to update these forward-looking statements. This document represents the Company‘s judgment as on the date of this presentation.

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