Railway PRO Investment Summit 11 – 13 October 2016 Bucuresti Compania Naţională de Căi Ferate National Railway Company “CFR” S.A. Railway PRO Investment Summit 11 – 13 October 2016 Bucuresti Enhancing the competitiveness and quality of rail transport Key points & Strategies Railway Pro Forum, Buzău, October 11th, 2016

Change of External Legal Framework Adhesion to European Strategic Goals WHITE PAPER Roadmap to a Single European Transport Area – Towards a competitive and resource efficient transport system EUROPEAN COMMISSION Brussels, 28.3.2011 COM(2011) 144 final 30% of road freight over 300 km should shift to other modes such as rail or waterborne transport by 2030, and more than 50% by 2050 … By 2050 the majority of medium-distance passenger transport should go by rail. DIRECTIVE 2012 / 34 / UE Establishing a single European railway area The EUROPEAN PARLIAMENT & the COUNCIL OF THE EUROPEAN UNION Brussels, 21.11.2012 Development of the union railways Licensing of railway undertakings Levying of charges for the use of railway infrastructure and alocation of railway infrastructure capacity Regulatory body 2

Main effects : A new philosophy of development and funding for rail infrastructure is generated by Directive 2012/34 / EU 2011 2012 2013 2014 2015 2016 28-03-2016 21-11-2012 16-06-2015 Document approval COM(2011) 144 final White Paper Directive 2012/34/UE Limit terms for Transposition of in national legislation Parliament approval 30-11-16 2030 2050 2015 250% Consequences on Romanian Railways 300% Freight Rail Transport Passenger Rail Transport Development funds Infrastructure maintenance Traffic management Operations for company Current maintenance Operating costs Infrastructure renewal Development, modernization Investment costs TUI revenues National Funds for maintenance Public Funds Non-TUI revenues Other revenues CFR revenues National funds for current repairs National funds for Infrastructure renwwal EU Funds National Funds Current repairs Actual situation Directive 2012/34/UE Necessary costs Effective costs CFR revenues Public funds alocated It applies to all categories of costs Applicable for the costs of maintenance, repair and renewal Infrastructure Cost – Revenue Chart 3

Strategy overview for the railway sector - GMPT August 2016 Change of Internal Legal Framework Strategy overview for the railway sector - GMPT August 2016 Increasing of the rail transport attractiveness Mission Improvement of the travel conditions by modernizing and developing the national rail network services Objectives TEN-T railway network modernization TEN-T network railway electrification Implementation of rail services, routes with increased speed, quick-wins and acquisition of new rolling stock Economic railway modernization Touristic railway modernization Strategies 4

Financing Needs 2015-2030 Objective Estimated costs [M €] TOTAL 2015-2020 2021-2030 TOTAL Infrastructure current maintenance 1 350.0 2 700.0 4 050.0 Recovery of current repair backlogs 275.0 100.0 375.0 Recovery of renewal backlogs 4 000.0 8 000.0 12 000.0 Subtotal Maintenance and Renewal 5 625.0 10 800.0 16 425.0 Rehabilitation the Rhine – Danube Corridor the Northern Branch 2 526.0   Rehabilitation the Rhine – Danube Corridor the Southern Branch 836.0 1 349.2 2 185.2 Rehabilitation/modernization the Orient/East-Med Corridor 182.4 Rehabilitation/modernization the Core TEN-T network 1 885.2 2 148.6 4 033.8 Rehabilitation/modernization the Comprehensive TEN-T network 4 044.1 Subtotal Rehabilitation/Modernization 5 429.6 7 541.9 12 971.5 11 054.6 18 341.9 29 396.5 Source: CFR SA & Romanian General Master Plan of Transport All this money invested in rail infrastructure are returning back to sustain the real economy throughout salary, payment of national resources, taxes and others services

CFR First Objectives A Integration of the Romanian Rail System in the Single European Transport Area page 6

Modernization / upgrading of conventional railway lines; CFR main programs of modernization and development of railway infrastructure 2014-2020 Modernization / upgrading of conventional railway lines; Electrification; Renewal of existing lines, including reconstruction for increased speed, hourly cadence and rail services; Rehabilitation of bridges and tunnels; Modernization of railway stations; Improve traffic safety; Cross-border railway lines; Rehabilitation of railway lines with touristic importance. page 7

CFR Project Status of Corridor Rehabilitation

Project Evolution No. Section / Subsection Value Works (Euro) Status Source of financing / Programme Expected Completion date 1 HU-RO Border - Curtici - Km 614 242,352,876 completed SOP-T 2007-2013 30.12.2016 2 Km 614 - Gurasada - Simeria 1,852,523,381 tender procedure - evaluation POIM 2014-2020 30.08.2019 3 Simeria – Coslariu 464,246,059 in execution 75%/55% 28.02.2018 4 Coslariu - Sighisoara 517426920 97 %/ 70 %/70 % 5 Sighisoara–Brasov 1,443,650,448 tender procedure CEF 2014-2020 31.12.2021 6 Brasov - Predeal 418,000,000 In preparation - revising FS POIM 2014-2020 / CEF 2014-2020 2018 7 Predeal - Campina 290,173,369 ISPA 2012 8 Campina – Ploiesti - Bucuresti 271,125.000 EIB June 2004 9 Bucuresti - Constanta 607,398,296 ISPA/JBIC 2011 10 Arad-Timisoara - Caransebes 495,000,000 FS on going State budget 11 Caransebes - Craiova 748,000,000 FS tender procedure 12 Craiova - Calafat 566,000,000 13 Craiova - Bucuresti 67.980,000 In preparation - FS 2019 14 Cluj – Episcopia Bihor 477,400,000 15 Bucuresti - Giurgiu Nord 198,240,000 page 9

Objectives Achieved in 2016 Reabilitation of railway line Border-Curtici-Arad-km.614; Operational project pilot for ETCS/ERTMS level 2 application; Modernizaton of Pitesti and Ramnicu Valcea railway station; Rehabilitation of bridges, culverts and tunnels - SRCF Constanta.

Safety Projects 2017-2018 Bridges & Tunnels: Safety projects: First stage: 98 objectives in execution; Second stage: 173 objectives in preparation / tender procedures Safety projects: 150 level crossing in preparation, 28 overheat detectors in execution, 2 railway section with upgradin signalling works in execution migration to electronic interlocking and ETCS – GSM-R system

35 railway station finalised 47 railway station in preparation Modernization Projects for Railway Station 35 railway station finalised Botosani Zalau Braila Resita Sud Giurgiu 47 railway station in preparation

CFR Second Objective Increasing rail transport competitiveness on the domestic market B . Intermodal streams: Focusing on individual road transport Focusing on shift to rail of freight road transport

The Platform of Projects for EFSI, PPP, IFI CFR Challenging Projects The Platform of Projects for EFSI, PPP, IFI Railway Investment package for connecting Bucharest with the largest industrial centres in the South of Romania The modernization of the railway lines situated on Orient East-Mediterranean Corridor The modernization and electrification of the railway line Constanta-Mangalia Intermodal terminals Craiova (Ford) Pitesti (Renault) .

EFSI Projects 1. “Investment package for connecting Bucharest with the largest industrial centres in the South of Romania “ Nr. crt. Project Km Estimated value for works (mil. €) 1 Modernization of the railway line BUCHAREST - PITESTI 117 249 2 Modernization of the railway line BUCHAREST – CRAIOVA 209 836 3 The upgrading of the railway line BUCUREŞTI NORD – JILAVA - GIURGIU NORD - BORDER WITH BULGARIA 99.98 198 4 Upgrading and construction of the railway line BUCUREŞTI NORD – HENRY COANDA BUCURESTI INTERNATIONAL AIRPORT 19.36 97 5 Modernization of the railway ring of BUCHAREST for passenger and freight transport in the metropolitan area 83.07 6 Modernization of the BUCHAREST RAILWAY COMPLEX (urbanization and development of Gara de Nord railway station area) 20 ha 785 2. “The modernization of the railway lines situated on Orient East-Mediterranean Corridor, Romania“ Nr Investment projects Km Estimated value for works (mil. €) 1 Modernization of the railway line ARAD – TIMIŞOARA - CARANSEBEŞ 155 429 2 Modernization of the railway line CARANSEBES - DROBETA TURNU SEVERIN – CRAIOVA 227 920 3 Modernization of the railway line CRAIOVA - CALAFAT 108 182 . 3. “ The modernization and electrification of the railway line Constanta-Mangalia, Romania “ Construction and assembly works 130 mil. €

Final Impact of Rail Investments

Marius Chiper – Director General CFR S.A. Compania Naţională de Căi Ferate National Railway Company “CFR” S.A. Thank you ! Marius Chiper – Director General CFR S.A.