HŽ Passenger Transport – overviewBUCHAREST HŽ PASSENGER TRANSPORT

HŽ Passenger Transport – overview OVERVIEW OF PRESENTATION  The environment in which we operate  Structure and assets  Performance indicators  Financial update  Plans

HŽ Passenger Transport – overview GOVERNMENT BODIES MPPI (Ministry of maritime affairs, transport and infrastructure) ASŽ (Agency for railway transport safety) ARTZU (Railway services market regulatory agency) HŽ PASSENGER TRANSPORT HŽ INFRASTRUCTUREHŽ CARGO Supervisory Board

HŽ Passenger Transport – overview HŽ PASSENGER TRANSPORT HŽ Passenger Transport is the sole passenger rail operator in the Republic of Croatia 100% state-owned company HŽ Passenger Transport provides public transportation for passengers in domestic and international rail traffic as well as traction Timetable 2012/ domestic trains 22 international trains

HŽ Passenger Transport – overview ORGANIZATION STRUCTURE

HŽ Passenger Transport – overview OVERVIEW OF FIXED ASSETS HŽ Infrastructure:  track km of which: km single track line km double track line;  980 km of track is electrified,  45 kmph average commercial speed of passengers trains  578 stations  level crossings (68 pedestrian)  596 bridges (21,4 km)  109 tunnels (29,7 km)

HŽ Passenger Transport – overview RAILWAY NETWORK 640 km 458 km

HŽ Passenger Transport – overview ROLLING STOCK ROLLING STOCK 41 electric locomotives 28 diesel locomotives 10 shunting locomotives 306 wagons 72 diesel multiple-unit sets 23 electric multiple-unit sets

HŽ Passenger Transport – overview TRAVEL TIMES – DOMESTIC TRANSPORT

HŽ Passenger Transport – overview TRAVEL TIMES – INTERNATIONAL TRANSPORT

HŽ Passenger Transport – overview PASSENGERS AND KILOMETERS

HŽ Passenger Transport – overview ANNUAL PASSENGER TRENDS – road, air, rail, sea

HŽ Passenger Transport – overview PUNCTUALITY PERFORMANCE DELAY I. – IV Delay in departure (in min) Delay during drive (in min) Delay per 100 km335 Delay per train/day (in min)1,92,63,4

HŽ Passenger Transport – overview FINANCIAL PERFORMANCE

HŽ Passenger Transport – overview REVENUE STRUCTURE (in 000)

HŽ Passenger Transport – overview RESTRUCTURING PROGRAM The strategic objectives for the period 2012 – 2016: Increase the number of passengers by 22% Increase revenue by 23% Acquisition of 32 electric and 12 diesel and electric trains New technologies (sales informatization) Staff reduction Cost-cutting

HŽ Passenger Transport – overview EMPLOYEES * On 1st October 2012, through division of the company HŽ Train Traction into HŽ Passenger Transport and HŽ Cargo 1,034 employees from that company passed over to HŽ Passenger Transport. Likewise, through dissolution of the company HZ Holding, 11 employees from that company passed over to HŽ Passenger Transport. * For employees that left company in 2012, HRK 27.9 million severance payment was paid /12/20121/1/201331/12/201331/12/201431/12/201531/12/2016 Number of employees * Staff reduction 148*

HŽ Passenger Transport – overview PLANS FOR THE FUTURE To increase the level of customer satisfaction (comfort, security, quality) and decrease operative costs, it is neccessary to fullfil following premisses in business direction:  Acquire new rolling stock due to outdated vehicles  Development of integrated transport system  Complete sales informatization  Development and implementation of new sale channels in accordance with new technological trends  HŽ Infrastructure - Investments in railway building and reconstruction to reduce travel time

HŽ Passenger Transport – overview INVESTMENT PLAN TILL 2016 Transport capacities modernization program HRK million (28,2 million €) Transport capacities acquisition program HRK 1.6 billion (220 million €) Company informatization program HRK 91.7 million (12,2 million €)

HŽ Passenger Transport – overview CONCLUSION Integrate planning, management and transport control process Total passenger traffic organized by motor trains Organize regular maintenance in one subject Implement new technologies in business Develop an integrated public transport Increase the quality of transport services Increase competitive position in the market Increase revenue and reduce the company´s cost FINANCIALLY SUSTAINABLE SYSTEM

HŽ Passenger Transport – overview Thank you for your attention!