Deutsche Bahn AG
An international mobility and logistics service provider
Presentation at
Brest State Technical University
Deutsche Bahn AG
Michael Gödde
Brest (BY), 12 September 2013
DB’s history began 1835 with the opening
of the six kilometer-long Nuremberg-Fuerth line
The history of the railway in Germany
1835
1920
1994
1949
Split up into
Bundesbahn
and
Reichsbahn
START
Nuremberg-Fuerth
with the Adler
locomotive
Leading international
passenger and
logistics company
Deutsche Bundesbahn
and Deutsche Reichsbahn
merge to become
Deutsche Bahn AG
Founding of the
Deutsche
Reichsbahn
Deutsche Bahn AG
TODAY
2
The Railway Reform Act of 1994 marked the beginning of a
new railway era in Germany and the creation of Deutsche Bahn AG
Before Rail Reform
Today
Implemented
entrepreneurial
structures
Rail opened up to
competition
Bureaucratic structures
Monopoly structure
Heavy government influence
High losses – personnel
expenses exceeded revenues
Responsibility for
local rail passenger
transport delegated
to regional levels
Modern and efficient
organization
Competition is expanding
Value-driven decision making
Greater profitability
More than EUR 30 bn in debt
Debt is continuously shrinking
Rail was losing market share
Rail is enjoying a renaissance
Deutsche Bahn AG
3
With its nine business divisions DB is active in all
segments of the transport market
Passenger Transport:
Transportation and Logistics:
Infrastruktur:
Domestic and European-wide mobility
services
Intelligent logistics services via land,
air and the sea
Efficient and future-oriented rail
infrastructure in Germany
DB Bahn Long Distance
DB Schenker Rail
DB Netze Track
European rail freight transport
Rail network
DB Bahn Regio
DB Schenker Logistics
DB Netze Stations
Regional/urban pass. transport (GER)
Global logistics services
Traffic stations
Long-distance rail pass.
transport1
DB Arriva
Regional/urban pass. transport
DB Netze Energy
(EU)2
Traction current
DB Services3
Integrated range of services
1 Within Germany as well as cross border traffic; 2 In UK with Arriva-affiliate ‘CrossCountry’ also long-distance passenger transport;
3 Business unit is assigned to the Rail Technology and Services division
Deutsche Bahn AG
4
Passenger Transport
DB is the second biggest provider in the entire European
passenger transport market
2.7
DB Bahn Long Distance
DB Bahn Regional
DB Arriva
DB Bahn Sales1
billion passengers per year
in trains and buses
25,000
passenger trains per day
Once
around the world – the
distance traveled by every
ICE train per month
9
neighboring countries can
be reached directly via DB
As of December 31, 2012; Figures on the left side are rounded and exclude Arriva; 1 DB Bahn Sales is a service center within the passenger transport division
Deutsche Bahn AG
5
Transportation and Logistics
DB is the second biggest worldwide provider of transport
and logistics services
More than 2,000
DB Schenker Rail
locations in over 130
countries
400
million tonnes of freight
transported via rail per year
95
million shipments sent per
year via European land
transport
DB Schenker Logistics
6
million square meters of
storage space around the
world
As of December 31, 2012; Figures are rounded; 1 Twenty-foot Equivalent Unit
Deutsche Bahn AG
6
Infrastructure
DB operates the biggest rail network in the heart of Europe
5,700
DB Netze Track
DB Netze Stations
DB Netze Energy
DB Netze Projects1
train stations serve as
railway gateways in
Germany
34,000
km long rail network – three
times as long as the
German Autobahn network
48,500
heated switches out of a
total of 72,000
5th
largest provider of energy in
Germany – annual volume
of available energy equal to
energy consumed by Berlin
metropolitan area
As of December 31, 2012; Figures are rounded; 1 DB Netze Projects is a service center within the infrastructure division
Deutsche Bahn AG
7
Services
DB Services is DB's nation-wide, high-performing internal
service provider
DB Services
Over 6,000
DB Systel
DB Communications
Technology
DB Services
DB Security
DB Heavy
Maintenance
DB Motor Vehicle Fleet
"Call a bikes" in numerous
major cities make us
Germany's largest bicycle
rental company
13
facilities provide technical
support for 6,900
locomotives and 2,100
railcars
500
IT applications for the DB
Group
2,300
security personnel in trains
and at stations ensure the
safety of our customers1
As of December 31, 2012; Figures are rounded; 1 Employees directly employed at DB Security
Deutsche Bahn AG
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DB is active in its market segments with independent commercial
services and publicly mandated services
We differentiate between independent commercial services
and publicly mandated services
Independent commercial services
Publicly mandated services
Passenger Transport
Transportation & Logistics
Infrastructure
Long-distance transport services
Direct competition, above all, with
cars and airplanes
End-customer business
Intensive level of fixed assets
Rail freight transport services
Rail competes directly with other
modes of transport
Big customer business, clear sector
focus
Intensive level of fixed assets
Provision of infrastructure
No competition, monopoly position in
regulated markets, public-sector
contracts for reliable and efficient
provision of infrastructure at
competitive prices
Customer: Carriers (derived demand)
Very intensive level of fixed assets
Local public transport services
Contracted routes,
tender competition
Customers here are both the
contracting organization1 as well as
the passenger (end-customer)
Intensive level of fixed assets
Freight forward. and logistical services
Direct competition (world-wide)
Full service forwarder, large customer base, broad mix of industries
Less intensive level of fixed assets
1 Contracting organizations can be states, state-run enterprises, transport associations, or regional bodies
Deutsche Bahn AG
9
In 2012 DB achieved the highest revenue and
profit in its history
Revenues 2012 in € millions
DB Bahn Long Distance
4,074
364
882
8,907
DB Bahn Regional
DB Arriva
3,757
DB Schenker Rail
DB Schenker Logistics
4,925
DB Netze Track
4,709
DB Netze Stations
DB Netze Energy
DB Services
EBIT 2012 in € millions
238
87
15,389
418
894
230
1,102
2,832
91
84
1,498
1
39,296
As of December 31, 2012; 1 Difference between total for divisions and DB Group due to other activities/consolidation
Deutsche Bahn AG
10
2,708
DB is becoming increasingly active in international markets –
however, the primary focus remains on rail and Germany
Revenues by region
Revenues by activity
(100% ~ annual revenues in bn EUR)
100% ~ annual revenues in bn EUR)
39.3
39.3
68%
25.1
62%
42%
International
26%
Germany
74%
58%
20051
2012
Stand: 31.12.2012; 1 Group financial statements according to IFRS
Deutsche Bahn AG
25.1
Non-Rail
41%
Rail
59%
20051
11
48%
52%
2012
DB has about 300,000 employees around the world, of
which more than 190,000 are based in Germany
Employees by region
100% ~ 287,508 full time equivalent
Employees by business unit
100% ~ 287,508 full time equivalent
Other activities
DB Bahn Long Distance: 5.5%
DB Bahn Regional: 12.9%
DB Arriva: 13.8%
8.5%
DB Services
9.2%
32.2%
Remaining
international locations
1%
16.7%
33.4%
DB Netze Track: 14.4%
DB Netze Stations: 1.7%
DB Netze Energy: 0.6%
As of December 31, 2012
Deutsche Bahn AG
NorthAmerica
3%
Europe excluding G.
27%
Asia
Germany
5%
65%
DB Schenker Rail: 11.1%
DB Schenker Logistics: 22.3%
12
Today around 100,000 employees represent DB
Schenker worldwide in 130 countries
DB Schenker locations and employees
Employees per business unit
Europe (incl. Russia)
approx. 74,800 employees
32%
68%
America
approx. 9,100
employees
Own locations
Partners
DB Schenker Logistics
DB Schenker Rail
Asia-Pacific
approx.
13,800
employees
Near Middle
East / Africa
approx. 1,000
employees
Date: May 2013, natural employees
DB Mobility Logistics AG, Transportation and Logistics division
13
With 20 bn EUR revenues DB Schenker is the second
largest logistics company in the world
Top 10 Players of the wordwide transportation and logistics market1
Revenues 2011 und 2012, in bn EUR, variable foreign exchange rates
Increase
2011 - 2012
2011
DHL
2012
29.2
Global Forwarding, Freight,
Supply Chain/CIS
20.3
+6.2%
27,5
+2.6%
Union Pacific
16.32
+15.8%
BNSF
16.22
+15.4%
14.22,3
Kühne + Nagel
Nippon Express
12.72
Distribution & Transportation
+8.0%
+3.4%
SNCF Geodis
9.5
+0.9%
CSX Corporation
9.12
+8.4%
Norfolk Southern
CEVA4
8.62
7.2
1 Without shipping lines, Chinese and Indian railway as well RZD 2 Strong foreign exchange effect
3 Invoiced net sales (comparable with revenue of DB Schenker) 4 CEVA is headquartered in the Netherlands
Sources: Annual statements, press, GSL
DB Mobility Logistics AG, Transportation and Logistics division
14
+7.0%
+4.8%
DB Schenker Rail offers a wide range of products
for our customers
DB Schenker Rail product portfolio
Core products
Block
train
Single
wagon
Industry solutions
Intermodal
chemsolution
disposal
solution
Automotive
RailNet
Additional services
Door-toDoor
Logistics
Rail
Logistics
Eco Plus
ECO2PHANT
paper
solution
Source: GSL
DB
15 Mobility Logistics AG, Transportation and Logistics division
oil
solution
Sidings
Maintenance
RailRoCargo
traffic
Our network of integrated transport and logistics services
is the basis to become profitable market leader
Network integrated transport – and logistics services
Current actions
Enhancement of solutions for
selected corridors
– Transeurasia (China train)
– Southeast-Europe
(Bosporus shuttle)
– West-East corridor
(Automotive-Zug DE-PT)
Profitable
market leader
Door-to-door-solutions for the entire supply chain
Multimodal transport solutions with
integrated contract logistics solutions
Dedicated industry solutions and market
development through competence centers
Sources: GSL
DB Mobility Logistics AG, Transportation and Logistics division
16
16
Strenghtening hinterland
networks of DB Schenker Rail
and DB Schenker Logistics
Ocean in Europe
Cross-business unit
development of multimodal
industry solutions, for example
regarding automotive, industry
and consumer goods
Our organization makes European services possible
Direct connection between the UK
and Poland
GEFCO transports
ECR / DB SR
Regular scheduled train between
Portugal and Germany
Train transportation
Other partners
Truck distribution
DK
NL
D
PL
London
Brunswick
Wroclaw
B
SK
Gevrey
hub
F
Frankfurt a.M.
CZ
AT
HU
Porto
I
Lisbon
Gefco is a new major customer
of French subsidiary ECR
Successful acquisition of highquality transports, primarily by
strengthening the wagon group
network in France
Source: DB SR
DB
17 Mobility Logistics AG, Transportation and Logistics division
First regular rail freight
transport offered between the
UK and Poland
Regular train connection with a
specific focus on automotive
customers added
Uses the High Speed One
connection between the Channel
Tunnel and London, which was
completed in 2011
Short transit times (3-4 days)
create a competitive advantage
over truck transport
DB Schenker is developing the rail
corridor between China and Europe
Routes
RU
Moscow
PL
Duisburg
Zabaykalsk/
Manzhouli
BY
Mala/
Brest
KAZ
CN
MN
Dostyk/
Alashankou
Shanghai
Chongqing
Southern route
Distance from Chongqing
approximately 10,300 km
Transit time (terminalterminal): 16 – 18 days
First pilot transports in 2011
Additional border crossing
and stop
Interesting for customers in
different industries, including
electronics, automotive,
chemicals
Uses DB Schenker’s (logistics)
networks and resources in
China and Europe
Northern route
DB Mobility Logistics AG, Transportation and Logistics division
Transport alternative with
- Lower transport costs than
air freight and
- Shorter transit times than
ocean freight
Distance from Shanghai
approximately 12,900 km
Transit time (terminalterminal): 18 – 20 days
Uses the Trans-Siberian
Railway
18
Trans Eurasia Logistics (TEL),
an affiliate of Deutsche Bahn,
operates rail service between
the terminals
In 2013, we will expand the Xrail network
to Northern Italy
Xrail Alliance single wagonload network
Objectives
Alliance of 7 European
RUs to promote single
wagonload transport
across Europe
Increase quality and
competitiveness of
European single
wagonload network
Current Xrail countries
Extension in 2013
Implementation
Extension 2013: single
wagonload in North Italy
in co-operation with RCA
By 2015: Implementation
of common capacity
management system
(based on Netzwerkbahn)
Source: Xrail, GSL
DB Mobility Logistics AG, Transportation and Logistics division
19
Project Wadi ensures DB’s market presence
in emerging railway markets
Project Wadi – Joint Venture with Etihad Rail (ER)
Construction of a UAE¹-wide federal freight and passenger railway in three stages
Objectives
Securing long-term
presence in the GCC2
region and door-opener for
follow-on projects for DB
group
Stage 1 characteristics:
❚ 266 km route between
Ruwais and Shah
❚ One customer: ADNOC (Abu
Dhabi National Oil Company)
❚ Operation of two trains daily
❚ Consulting services for
stages 2 and 3
1 UAE = United Arab Emirates
2 GCC = Gulf Cooperation Council
Source: L.RF
DB Mobility Logistics AG, Transportation and Logistics division
Establishment of an
operations & maintenance
joint venture
Status of tender process
DB nominated as
preferred bidder
Negotiations with ER to be
finalized end of Q1 2013
Operations to commence
in October 2013
20
Automotive RailNet offers efficient and flexible
automotive transports European-wide
Automotive RailNet
Provision of an European-wide railway
network for automotive transports to
connect manufacturers and suppliers with
sales markets and production centers
About 3 million vehicles per year are
transported via rail
More than 250 trains per day are in the
Automotive RailNet – both single wagonload
as well as block trains
Safe and fast transport across Europe
supported by modern IT-systems to monitor
transport streams
Development of integrated transport
solutions
Source: DB SR
DB Mobility Logistics AG, Transportation and Logistics division
21
The strategic direction DB2020 can be explained
along three core questions
Where are we today?
What challenges and opportunities will we encounter on our
journey?
Where will we be in 2020 and how will we get there?
Deutsche Bahn AG
22
Today
We hold leading market positions in Europe and the world
Netze
1
No.
Rail infrastructure
1
Schenker
1
2
No.
Bus transport
5
No.
Contract logistics
As of Dec. 31, 2012
Deutsche Bahn AG
2
2
No.
Air freight
No.
Land transport No.
Ocean freight
3
2
No.
Local rail passenger transport
No.
Long-distance passenger rail transport
No.
Rail freight transport
1
No.
Operation of railway
stations
Bahn
23
Challenges and Opportunities
The megatrends of the future
Demographic
change
Globalization
Climate change
Liberalization
and
scarcer resources
Deutsche Bahn AG
24
Challenges and Opportunities
The world is growing together, and is
becoming more complex and connected
Deutsche Bahn AG
25
Strategy
Achieve sustainable business success by bringing all
three dimensions into harmony with each other
Vision
We are becoming the world's leading mobility and logistics company
Sustainable business success and social acceptance
Sustainability
dimension
Profitable market leader
Economic
1
Top
Strategic
directions
1 Customer and
quality
2 Profitable
growth
Deutsche Bahn AG
Top employer
Social
10
Top
3 Cultural change/
employee
satisfaction
26
Eco-pioneer
Environmental
1
Top
4 Resource
preservation/
emissions and
noise reduction
Strategy
We want to improve customer satisfaction by offering
comprehensive information, friendly service and modern vehicles
1
Customer
and quality
Information and
Service
Gross capital
expenditures
until 2020
86
Areas for action
(selected examples)
Expand customer
information and service
billion €1
Modernization of vehicle
fleet
Upgrade and expand
infrastructure
Consistent process quality
Link global IT systems
together
Modernize and expand
passenger stations
Push product and process
innovation
1 Of which € 34 billion were DB funds (ex-M&A projects)
Deutsche Bahn AG
27
Strategy
We intend to defend and expand our leading market position by
growing continuously
2
Profitable
growth
Expand existing and
new customer business
Acquisitions and
tenders
Areas for action
(selected examples)
Develop networks
Cross-modal solutions
Improve capacity utilization
and productivity
Expand industrial
competence
+100%
70
34,4
2010
Deutsche Bahn AG
28
2020
Liberalization opportunities
offered by European
passenger transport market
Strategy
We want to become one of the top 10 employers in Germany by
2020 – and also be a top-ranked employer in international markets
Top
10
NEU
…
Top
20
…
As a top employer we
win and build loyalty
with qualified
employees who work
with enthusiasm for DB
and its customers
Deutsche Bahn AG
I’m a proud
DB
employee
10
Top
29
Strategy
We want to significantly increase employee satisfaction via the
cultural change we initiated
3
Cultural change/
employee satisfaction
Qualified
employees
work
enthusiastically
for DB and its customers
Areas for action
(selected examples)
Regional future-focused
discussions
Employee satisfaction
Employer attractiveness
Manage demographics
Understanding leadership
Diversity in leadership
Compatibility of career and
family
Internationalization
Talent Pools
Career planning
Deutsche Bahn AG
30
Strategy
By 2020 we’ll be recognized as the pioneer of environmental
measures including the reduction of CO2 emissions and noise
1
Top
Share of renewable
energy in the DB rail
energy mix
35%
Specific CO2emissions DB
-20%
Rail noise
-50%
20%
+75%
2010
2020
As an eco-pioneer our
products set standards
for the efficient use of
resources
2006
Deutsche Bahn AG
2020
31
2000
2020
Strategy
We will expand our leading environmental position by using
resources more efficiently, as well as by reducing CO2 and noise
4
Resource preservation/
emissions and noise reduction
Areas for action
We are a leader in
environmental protection
(selected examples)
Use of wind and hydroelectric energy
Noise abatement
Efficient use of energy
Freight transport using
EcoSolutions
CO2-free offers for
passenger transport
Electro-mobility on the
road
Efficient usage of materials
and resources
Deutsche Bahn AG
32
Our DB2020 strategy defined the framework,
we will resolutely continue with its realization
We are becoming the
world’s leading
mobility
logistics company
and
For people.
For markets.
For tomorrow.
Deutsche Bahn AG
33