6. helwig (5) (1)

DB Schenker

RLF

Kelsterbach, June 28, 2012

- Rail based transports between China and Europe

2DB Schenker | June 2012

Agenda

Introduction DB & DB Schenker

Rail advantage

DB Schenker advantage

Our offer today

China-Europe train activities

Discussion

3Global transportation and logistics network

Today

A rail freight company operating in Germany has become a global transportation and logistics group

3.5 EUR bn revenue

Rail freight network

Primarily national services

Nationalrail freight network

Until 2001

Acquisitions, organic growth

1 as of: 31.12.2011

19.8 EUR bn1 revenue

Solutions along the wholelogistics chain

Global network with intermodal services

DB Mobility Logistics AG, Transport and Logistics division appro

ved

(DB 201

1)

4Today around 95,000 employees represent DB Schenker worldwide in 130 countries

DB Schenker locations and employees

Date: 31.12.2011, FTEs

PartnersOwn locations

Employees according to BU

DB Mobility Logistics AG, Transport and Logistics division

Europe (incl. Russia)approx. 71,500 employees

Asia-Pacificapprox. 12,500

employeesNear MiddleEast / Africaapprox. 1,200 employees

America approx. 9,200 employees

DB Schenker LogisticsDB Schenker Rail

66%

34%

approve

d

(DB 201

1)

5 Rail FreightNo. 1 in Europe1)

Land transportNo. 1 in Europe2)

Air No. 2 worldwide3)

Ocean No. 3 worldwide4)

CL/SCM No. 6 worldwide5)

Global transport networks for all modes of transportstrengthen the market position of DB Schenker

Source: DB 1) according to tkm 2) according to revenue 3) according to t 4) according to TEU 5) according to revenue

Rail Freight CL/SCM

Ocean Air

Land transport

Worldwide land, sea, and air transport networks


ved

(DB 201

1)

6In our network we move tons of freight - worldwide, 24 hours a day

Air freight

1.1 m t Transport volume p.a.

Weight of 240,000 elephants=

Contract logistics

> 6.0 m m2

of storage area

1,100 football fields=

Ocean freight

1.8 m TEU

Transport volume p.a.

Length of a row of containers stretchingfrom Hamburg to Shanghai

= HHSHA

Rail freight transport

412 m tTransport volume p.a.

Twice as much as Germanyscoal production in 2010=

Land transport

95 mshipments p.a.

2 shipmentsper second=

Source: DB ML AG, figures rounded 1) Twenty-foot Equivalent Unit


ved

(DB 201

1)


Agenda


Rail advantage


Our offer today


Discussion


There are currently two main rail routes used by DB Schenker between China and Europe

= Northern Route (leadtime: 26 days)1

= Southern Route (lead time: 22 days)1

RU

BY

KAZMN

PL

CN

Manzhouli (CN) -Zabaykalsk (RU)

Alashankou (CN) -Dostyk (KAZ)

Brest (BY) Malaszewicze (PL)

1

2

3

1

Gauge change

1435 mm gauge

1520 mm gauge

2

3

Overview of main rail routesILLUSTRATIVE

1) Based on block trains

Explanation

DB Schenker has been investigating regular China-Europe train services since 2007 service professionalization since 2011


Numberof trains

TimeUntil2010

2011 2012

First train between Beijingand Hamburg 2007

Test services on Northern and Southern route in 2010

11 company trains run on a non-regular basis from Chongqing to Duisburg (IT products)

Start of regular company train service (Automotive) on the Northern route from Leipzig to Shenyang (eastbound)

Since March regular company trains run on westbound route on weekly basis

Further trainsplanned on eastbound route

Track record DB Schenker China Train

Additional efforts to realize a multi-customer train on the Northern route from China to Europe

10DB Schenker | June 2012 1010

Case study: Chongqing Duisburg train for IT customerOperated since spring 2011, weekly service March 2012

Dedicated train for a customer from the IT industry with reliable door-to-door time of 22-23 days

1 pilot train and 4 qualifying trains followed by 6 weekly trains in August / September in 2011

Regular weekly service since March 2012


Case study: BMW trains Leipzig to ShenyangIn operation since late 2011

Daily trains planned

Approx. 40 containers per train

Transportation time < 25 days

Packing of containers with Completely Knocked Down (CKD) parts in new logistics center in Leipzig

Block train transportation from Leipzig to Shenyang in North-Eastern China

Capacity of 40 containers (40`) per block train

Transportation time of 23 days (door to door)

Use of 40 feet high cube containers

Currently exclusive service for BMW


Agenda


Rail advantage


Our offer today


Discussion


Customers chose from different transport modes according to their needs cost and time as major decision factors

Available trade lanes Asia-Europe (lead times1)) Comparison of transport modes CN-EU

Transsibirische EisenbahnTrans-Siberian Railway (20 days)

Sea route (35 days)

Sea route (45 days)

Air route (4 days)

Southern Route (16 days)

35

40.000

Transit time

CostUSD/FEU

Days25155

10.000

20.000

30.000

Sea/Air

Sea

Air

Rail

1) Terminal-to-terminal lead times


Rail is positioned between Ocean and Air offering customers an interesting alternative to traditional modes

USD / notebook 1.41) 4.31) 9 16

Lead Time 38 days 22 days 22 days 4 days

1) Depends on number of units per 40 Ct Assumption here is 2.500 units

Comparison of transportation costs / lead time door-door One notebook from Chongqing The Netherlands

Ocean Rail Ocean/Air Air

Rail offers a 16 day lead time advantage. However, price is three times that of ocean Ocean Rail

Rail offers > 70 % price reduction. However, lead time is 18 days slower Air Rail

Rail offers > 50 % price reduction with same lead time Ocean/ Air Rail


Apart from economic advantages Rail offers the most environmentally friendly transport mode

Rail service between China and Europe makes sense from an environmental as

well as a business perspective

From an environmental perspective Rail transport is the preferred choice for shipments between China and Europe

Rail is not only the most ecological mode of transport in terms of CO2 emission but also regarding other pollutants1)

5.727

4.052

391270

AirRail Ocean+AirOcean

CO2-Emission

kg CO2 / ton

1) e.g. PM (particulate matter), NMHC (non-methane hydro carbons), SO2 (sulphur dioxide), NOx (nitrogen oxide)

Source: Eco Transit tool DB Schenker

Example: Door-to-Door transport from Beijing to Duisburg

16DB Schenker | June2012

Agenda


Rail advantage


Our offer today


Discussion


DB Schenker is in an excellent position to develop rail services from China to Europe and vice versa

Participation in railway conferences (CN/EU land bridge)

Three joint ventures with China and Russian Railway

TEL (RU)

CRIntermodal (CN)

YuXinOu (CN, RU)

Well-established block train system in Europe

Pre- & on-carriage by truckfeasible in China and Europe based on dense branch network

Outstanding operational expertise

Deep operational insights regarding booking, container provisioning and customs

Comprehensive security concept from container loading to unloading destination

Excellent relationship with railway operators

Vast distributionnetwork by rail and truck


Our joint venture CRIntermodal provides us with directaccess to a large terminal network in China

Source: CUIRC China, DB Intermodal Services 2010, DB Schenker Logistics China 2010

Terminal locations

Xi'an

Dalian

Qingdao

Urumqi

Lanzhou

Chengdu Zhengzhou

Tianjin

Guangzhou Kunming

Harbin

Beijing

Chongqing Wuhan

Shanghai Ningbo

Shenzhen

Shenyang

Terminals (as of October 2011)Planned Terminals

Offers intermodal container transportation in China

5 shareholders that combine local and overseas expertise in transport and logistics (CRCT, NWS Holding, CIMC, Luck Glory and Deutsche Bahn)

9 terminals already completed, 9 more planned)


Agenda


Rail advantage


Our offer today


Discussion


In rail transportation there are two transport modes:Single wagon and block train transportation

Single Wagon

Booking of a single container possible

Departure possible every day

Block Train

Advantages

Disadvantages

Short transit time with high reliability

Lower price per containerthan single wagon

Long transit time with low reliability

Higher price per container than block train

Minimum of 41 x 40containers required

Low frequency (e.g. perhaps only once per week)

Fixed departure dates

Comparison single wagon versus block train

Key feature

Container is transported in several trains from shunting station to shunting station longer breaks and detours likely

Container is transported in a single train without unnecessary stops and on the shortest route


Currently we offer single wagons and company block trains multi-customer trains are still under development

Company Train (Block train for one

customer)

Multi-customer Train

(block train for several customers)

Single WagonSingle containers or container groups do not have prioritized transit as complete block train

Available (for CN-EU onlyon Northern route)

Product Availability Comments

Available

Not yet available

Block train consisting of at least 41-50 FEU containers from one customer

Block train consisting of at least 41-50 FEU containers carrying volume of several customers

X

22DB Schenker | June2012

All along the route, the respective railways have a vast set of modern security measures in place

Modern terminal facilities with qualified staff

Terminal areas are fenced in

The railway police are mostly located directly at the terminals

The terminal and station areas are under video surveillance

Entry to the terminal only for customs, railway stuff or with authorization (identification card)

The cargo on the terminal territory is guarded by the local railway police and security personnel

Armed guards partially on the train, in terminal and stations

Overview of selected security measure along the route


Temperature can affect cargo safety - sensitive goods require a solid winter solution for year-round transport

Often, temperature sensitive goodstransported

Extreme low temperatures on the routefrom China via Kazakhstan and CIS during the winter months

Winter container solution required to avoid the temperature falling below -20 C

DB Schenker is actively working on a winter solution and already well advanced

RU

BY

KAZPL

Chongqing

Duisburg Dostyk

IlezkIlezkIlezk

Brest Ost

RU

BY

KAZPL

Chengdu

Duisburg Dostyk

IlezkIlezkIlezk

Brest Ost

MN CNB

Kazakzhstan Dostyk -35

Beskol -40

Karaganda-Sort. -43

Kandyagach -45

Aktobe -48

Russia Ilezk-1 -40

Orenburg -37

Kinel -30

Rusaevka Penz. Park -28

Kustarevka -29

Rybnoe -28

Bekasovo -27

Vjazma -27

Smolensk -26

Belorussia Krasnoe -25

Orsha-C -23

Baranovichi-C -22

Brest Ost -23

MN CNB

Kazakzhstan Dostyk -35

Beskol -40

Karaganda-Sort. -43

Kandyagach -45

Akto -48

Russia Ilezk-1 -40

Orenburg -37

Kinel -30

Rusaevka Penz. Park -28

Kustarevka -29

Rybnoe -28

Bekasovo -27

Vjazma -27

Smolensk -26

Belorussia Krasnoe -25

Orsha-C -23

Baranovichi-C -22

Brest Ost -23

Minimum temperatures

Advantages of the DB Schenker China train product at a glance


DB Schenker China trainkey success factors

Foto: Rdiger Nehmzow

Excellent relationship with railway operators along the route

Well-established distribution system in China and Europe

Outstanding operational expertise based on past and current solutions

DB Schenker

Speed Much faster than Ocean freight

Costs Less expensive than Air freight & Sea-Air products

Environment Environmentally most friendly transport mode

China train

SMGS Waybill for test container from 2007Progress in paper work has been made since then

DB Schenker | June 2012 25


Agenda


Rail advantage


Our offer today


Discussion

27

Rail A new product for DB Schenker in China with large potential

DB Schenker | June 2012

6. helwig (5) (1)

Documents

db schenkerrlfkelsterbach

logistics group3

contract logistics

logistics divisioneurope

logistics division approveddb

budb mobility logistics

countriesdb schenker

t transport volume p