1. 1 Improvement of the link Prague – Munich Berlin, 15 April 2016 1

2. 2 Brief profile of the company Joint stock company, 100% owned by the State 1993 – Dissolution of Czechoslovakia ■Czech Republic - České dráhy (ČD), state enterprise ■Slovak Republic – Železnice Slovenskej Republiky (ŽSR) 2003 – ČD separation to IM a RU ■SŽDC – Railway infrastructure manager ■ČD, a.s. – Railway undertaking ■Passenger transport – core business ■Cargo – part of ČD till 2007, (since 2008 100 % owned subsidiary ČD Cargo, a.s. established) ■Railway operation control (till 2011) ■Railway stations – transfer to SŽDC ready (government, EU) ■Research Institute (VUZ) 1

3. 3 ČD Group Core Business Activities Passenger Transport ■169,7 mil. passengers transported in 2015 ■10-year contract (2009 - 2019) with Ministry of Transport (long distance services) ■10-year contracts with 14 regional authorities (2009 - 2019) (regional services) Freight Transport ■66.4 mil. tonnes transported in 2015 1

4. 4 Most important long distance lines in international and domestic transport Higher yield and revenues Higher load factor Regular service offer (1 train per 1-2 hours) The goal are long term partnerships with neighbouring national railway operators Quality improvement of services and rolling stock Competitive infrastructure needed International Passenger Transport has the Key Importance for Domestic Long Distance Transport 4 1

5. 5 History ● First meeting held on 3 December 2014 in Brussels under the patronage of Czech MP Olga Sehnalova ● Followed further meetings : 13 March 2015 in Munich 23 October 2015 Prague ● Involved in discussions: ČD, SŽDC, Ministry of Transport – Czech Republic, Members of EP (Czech Republic, Germany/Bavaria), DG MOVE, Permanent Represetnations of ČR and Bavaria in Brussels, Community of European Railways (CER), Deutsche Bahn, Bavarian represetnation in Prague ● All the participants support further negotiations, therefore today´s meeting has been organised 1

6. 6 Position of ČD: ● ČD as the Czech national operator supports further development of the link Prague – Munich as a basic prerequisite of improving services for our clients Priorities: ● Fast and efficient connection to Munich via border-crossing station Furth im Wald ● Link to Nuremberg via Cheb 1

7. 7 Position of ČD: ● ČD supports all the steps aiming at the improvement of infrastructure of the whole section on both Czech and German side ● Higher level of infrastructure = condition for shorter travel times and services of higher quality ● This is the right way towards higher competitiveness of the railway transport on this corridor 1

8. 8 Targets ● Goal of improvement of Praha – Munich link must be a really competitive solution for the client compared with road (bus): Target travel time PRAHA – MUNICH ………………….. 4:30 hours PRAHA – BORDER CZ/D……...….. 2:15 hours ● Key factor in further development of the link is the German Federal Transport Infrastructure Development Plan (Bundesverkehrswegeplan) ● Development and approval process of that document is crucial for all the players on the link Prague - Munich 1

9. 9 Daily long-distance connections between CR and Germany ■Prague – Berlin - Hamburg/Stralsund - 6 pairs, cooperation with DB Fernverkehr (DB commercial connections) ■Prague – Pilsen – Munich - 4 pairs, cooperation with Alex (Netinera, in the order in Bavaria) ■Cheb – Nuremberg - 5 pairs, cooperation with DB Regio (in the order in Bavaria) Current status (all connections in the CR in the MDČR order) Outlook  Prague – Berlin – Hamburg - 6 pairs, cooperation with DB Fernverkehr, contract from 12/2015  Prague – Pilsen – Munich - 4-7 pairs anticipated, integrated with the R6 line - Prague – Pilsen – Cheb/Klatovy  Cheb – Nuremburg - 5-7 pairs anticipated, integrated with express lines Prague – Pilsen – Cheb/ Prague – Ústí n.L. – K. Vary - Cheb 1 Berlin Dresden Praha Hamburg Stralsund Nürnberg München Plzeň Cheb

10. 10 Prague – Munich connection – offer, transport relations ■4 pairs of connections at 4h intervals, part of the R6 line ■Cooperation with Alex (Netinera) – winner of the tender in Bavaria ■Connections in the MDČR and BEG orders ■Prague – Munich travel time of 5.45 to 6 hours is hardly competitive compared to highway transportation ■Competition – IC Bus DB Prague – Munich (travel time 4.40) Offer, competitive position Transport relations ■Daily cross-border traffic (Domažlice – Furth im Wald section) ■400 – 1,000 people daily in both directions ■Seasonal fluctuations ■Dominant destination (via the Česká Kubice/Furth im Wald border station - 2013) ■Munich - 65%, Regensburg - 20% ■Nuremberg - 3%, Cham, Schwandorf - 2% 1 Berlin Dresden Praha Hamburg Stralsund Nürnberg München Plzeň Cheb

11. 11 Prague – Munich connection – fleet ■2 ČD trainsets ■1xARmpee+1xBbdgmee+1xBee+1xBmz ■Capacity 22/166, bistro, bicycle and wheelchair transport, children’s section ■Supplemented (year-round/seasonally), especially in the Prague – Pilsen section ■2 Alex trainsets ■1xABvmz+3xBm ■Capacity 20/245, bicycle transport, ■Supplemented (year-round/seasonally), especially in the Prague – Pilsen section ■Relatively frequent problems with the quality of cars (comfort, equipment) ■Locomotives ■362 ČD, 223 Alex, 183 Alex Current status 1 Berlin Dresden Praha Hamburg Stralsund Nürnberg München Plzeň Cheb www.vagonweb.cz

12. 12 Prague – Munich connection – current infrastructure limits ■General ■Low section speed, lack of section electrification ■Limited infrastructure capacity ■But part of the TEN-T network→ must be modernized by 2030, in theory may be realized as soon as 2025 ■Prague - Beroun ■Limited track capacity (conflict with suburban lines), modernization of 3 rd rail transit corridor not yet completed ■Limited speed ■Pilsen – Schwandorf (- Regensburg) ■single track Pilsen - Schwandorf, Schwandorf switchback ■Lack of electrification Pilsen – Schwandorf – Regensburg ■Relatively low section speed Infrastructure limits 1 Berlin Dresden Praha Hamburg Stralsund Nürnberg München Plzeň Cheb Necessary infrastructure improvements  Double track (even partial) and electrification of relevant sections  Crossover before the Schwandorf station to resolve the switchback  Increase speed to at least 160 km/h  High-speed track a future alternative  Czech Republic – currently assessed by the Opportunity Study for the Czech Section  Germany – currently assessed by the “Bundesverkehrswegeplan”, which will recommend future improvements for the German section

13. 13 Prague – Munich connection - MDČR and BEG plans ■Czech government resolution no.758 of 15.9.2014 ■Future plan of the Ministry of Transportation to expand the Praha- Plzeň-Mnichov express line (JŘ 2016/17) ■Parameters of the offer ■2h interval, up to 7 pairs of connections ■Travel time shortened by 20 min. (express non-stop line Prague – Pilsen+ new line Pilsen - Rokycany) ■Anticipated cooperation with current transporter in Bavaria (final selection made by BEG) ■Current fleet MDČR and BEG plans 1 Berlin Dresden Praha Hamburg Stralsund Nürnberg München Plzeň Cheb Position and plans of ČD ■Principally targeting commercial interest in this line ■Prepared to ensure the scope of the order ■Need to supplement fleet ■An improvement of infrastructure parameters is necessary to make the connection more competitive

14. 14 Current status of the tender on Bavarian side: ● DB Regio participates in the tender ● DB Regio is interested in cooperation with ČD ● ČD sent in February to DB Regio a bid in which basic elements of the mutual cooperation are stated ● The communication between ČD and DB Regio is under way – target being a high quality option for the client 1

15. 15 THANK YOU FOR YOUR ATTENTION ! České dráhy, a.s. Nábřeží L. Svobody 1222 110 15 Prague 1 Czech Republic