1. DB Schenker in CIS – challenges, prospects
Uwe Leuschner ,
Vicepresident DB Schenker Logistics, Business Development CA and CIS
Astana, November 07, 2013
Åberg June 2012 1

2. Logistics … New ideas, new solutions – new ways for international tradelanes …
Uwe Leuschner, 2

3. Trends in politics….
Eurasian Union is planned from
Page 3

4. Trends in globalization….
Russia is after nearly 20 years WTO – member …, Kazakhstan soon …
Page 4

5. Trends in the markets …
Contract Logistics - market size estimates for CIS
in bn EUR
CAGR
Contract Logistics market for 2010 in CIS valued at about EUR 1.9bn – Russia with the largest share
Market concentration is low, the share of its five largest logistics operators do not exceed 12% in total
As CIS countries transform from traditional heavy industries towards more sophisticated industries such as Automotive and High-tech, increased need for more sophisticated supply chain management
+11%
3.47
1.86
2010
2016
Russia
94%
Kazakhstan 3%
Ukraine 1%
Belarus 1%
Rest of CIS 1%
Source: GSL market model based on InnoZ data; GSL estimates 5

6. Macroeconomics
The CIS region shows an attractive GDP growth above level of the industrialized countries
Relative growth by region, Real GDP , Index: 2010 = 100
Relative growth by country, Real GDP GAGR , in %
Developed Asia
Turkmenistan
150
Uzbekistan
Kazakhstan
Kyrgyz Republic
135
Sub-Sahara
Tajikistan
NME2)
Moldova
CIS1)
Latin America
Ukraine
120
Eastern Europe
Armenia
Industrialized countries
Russia
105
Belarus
Azerbaijan
100
1 Commonwealth Independent States 2 North Africa and Middle East
Source: IMF, GSL
DB Mobility Logistics AG, GSL, Jördis Deutschmann, 01/12/2012

7. Macroeconomics
CIS contains important industrial areas fundamental for cross-border transports with Europe
Commonwealth of Independent States
Major cities, industry and raw material clusters
CIS main industrial markets beyond a large raw material source are Russia, Kazakhstan, Ukraine
Russia is equipped with vast reserves of raw materials (e.g. oil, gas, metals)
The main industry clusters and largest cities can be found in the European part of Russia
Major industrial clusters are primarily located at the Western border of Ukraine to Russia as well as at the Northern border of Kazakhstan to Russia
In China, main industry clusters are concentrated on the coastal line
Raw material cluster
Industry cluster
Major cities
Source: GSL analysis, GTAI, Destatis, Bundesanstalt für Geowissenschaften, Asian Development Bank, web search
DB Mobility Logistics AG, GSL, Jördis Deutschmann, 01/12/2012 7 7 7 7

8. Macroeconomics
Based on import and export values, trade between Europe, Russia and China significant
Main trade flows in the region1) - Schematic
Total Import/Export values in bn EUR, 2010
Main trade flows are between Europe and Russia, China and Europe as well as Russia and China
Major share from China to Europe is currently transported by ocean freight – not via the Transeurasian land bridge
Most volumes are moving westbound into Europe
Germany as major trade partner of Russia and China in Europe 1
Europe  China 2
Europe  Russia 3
China  Russia
1 Includes all modes of transport; Europe meaning all European countries except Russia and Turkey
Source: GTAI, IMF, GSL estimates
DB Mobility Logistics AG, GSL, Jördis Deutschmann, 01/12/2012

9. Transport and Logistics
For CIS countries rail and road are major transport modes – whereas in China, waterways are by far dominating %
% of total share of total tkm in CIS
13,517
Freight transport volumes by transport mode 2010
in bn tkm
2,369
77%
10% 9% 5% 1)
Russia
Kazakhstan
Ukraine
Rest of CIS
China
Waterways
Air
Waterways
Air
Waterways
Air
Waterways
Air
Air
Road
Road
Rail
Rail
Road 1% 0% 4% 0% 8% 7% 0%
15% 0%
20%
27% 0% 3%
Road
40%
48%
56%
72%
32%
85%
82%
Rail
Rail
Rail
Road
Waterways
1 Excluding Tajikistan and Turkmenistan – no data available
Source: National freight transport volume from National Statistics agencies; GSL analysis
DB Mobility Logistics AG, GSL, Jördis Deutschmann, 01/12/2012

10. Transport and Logistics
Especially the road network in CIS requires immense investments in the future – rail network historically well supported
Key characteristics of freight transport modes in CIS
Rail freight
Road network has its main routes along the important railway routes
In the so called „Stan-countries“ road network seems more dense than rail network
In general road infrastructure is of far lower quality than rail infrastructure in the CIS
Increasing significance for long distance
Road freight
Ocean freight
Air freight
Rail dominates freight transport
Monopolies of unreformed old-style national rail company for traction – increased privatization of equipment
Imparity of gauge width between Europe (1435 mm) and CIS (1520 mm)
Underdeveloped infrastructure - density rather low
Important ports are connected to the main Asian rail and road network
Maritime transport is one of the most important modes of international trade for Russia
For other CIS countries, ocean freight not a key transport mode (mainly no access to sea)
Currently only minor share in terms of tkm (generally below 4%)
Mainly used for transport of mail, as well as unique or expensive goods
Rising fuel prices reduce cost efficiency of aircraft
Investments are not primarily made into airport infrastructures
Source: GTAI, RBC 2007, AHK 2010, Progtrans 2010/2011, GSL
DB Mobility Logistics AG, GSL, Jördis Deutschmann, 01/12/2012

11. Transport and Logistics
The transport and logistics market is subject to challenges resulting from different trends
Industry shift 
e.g. CIS countries shift from heavy industries towards more sophisti-cated high-tech sectors
Market liberalization
Growing competition
e.g. customs union only easing cross-border trade between Russia, Belarus and Kazakhstan
e.g. change from the cross-border operations to dom-estic services of internat. 3PL players like DHL
Key challenges transport and logistics market
Internationalization
Privatization
e.g. global cooperation like VW open subsidiaries in CIS countries
e.g. increased privatization of rail equipment by RZD and KTS
Infrastructure
shortage
e.g. limited availability of rail tracks supports shift to road; road with highest growth rates
Source: GSL
DB Mobility Logistics AG, GSL, Jördis Deutschmann, 01/12/2012 11

12. Strategic implications
Agriculture, Automotive, and Electronics as main industries with future potential – DBS’ strong expertise in these sectors as chance 
Positive trend 
Stagnant trend
PRELIMINARY
Agriculture2)
Metals and Mining
Automotive
Building materials3)
Chemicals4)
Oil&
Gas
Consumer5)
Industrials
Electronics
Russia
Kazakhstan
Ukraine
Belarus
Major industry trends in major markets                                    
Increased private income invested in status symbols like new, modern cars, but also in the acquisition of white goods and electronics, e.g. TVs
Automotive in Russia already strongly developing – ongoing trend
Suitability of former car production facilities for minor assembling with cheap labor costs will also benefit automotive industry, e.g. in Ukraine
Governments of CIS countries actively searching for investors for automotive industry
In particular for agricultural modernization and industrial production new machinery is required – Germany as a main supplier
1) Main industries also interesting for logistics services 2) includes food and meat base production; 3) related to construction; 4) without Oil and gas; 5 includes prepared food, 5) in particular FMCG 6) Machinery and white goods; excludes high-tech electronics
Source: National Statistics; National Ministries of Economic Development; GTAI; press articles; GTAI, OECD, PWC, Industry reports, Factiva, GSL assumptions 2011
Current Relative importance of industry in terms of GDP contr.
medium
high
DB Mobility Logistics AG, GSL, Jördis Deutschmann, 01/12/2012

13. For shipments to Russia we offer both direct rail service and sea-rail solutions
Overview of DB Schenker rail network covering main cities in China and Russia
Manzhouli (CN) - Zabaykalsk (RU) border
Alashankou (CN) – Dostyk (KZ) border
Sea-Rail intermodal transfer
Explanation
Transshipment and transit customs clearance/ Gauge Change 1
1435 mm normal gauge
1520 mm wide gauge
Customs Union 2 RU
St.Petersburg
Moscow
Yekaterinburg
Novosibirsk
Taishet
Omsk
Samara
Chita 1
Sovgavan
Irkutsk
Khabarovsk
KAZ MN 2
Vladivostok
Vostochny
Beijing
Yingkou CN
Chengdu
Sea
Rail
Rail (block train only)
Shanghai
Chongqing
Remark:
DB Schenker currently focused on the Northern Route connecting China to Russia, while the Southern Route is only applied for company block train
Guangzhou
Shenzhen 13

14. China to Central Asia Route Example
Rail reaches most cities in Central Asia and Mongolia with competitive prices and lead times
China to Mongolia Multimodal Route Example
Astana
Shanghai-Ulanbator
Rail Mode
Truck-Rail
Total Transit Time
10 days
Est. Cost / 40’HC
$7,000
KAZ MN
Almaty
Ulanbator
Tashkent
Urumqi
Beijing
Tianjin
Bishkek
Ashgabat
Dushanbe
Lianyungang CN
Chengdu
Bonded truck-rail multimodal solution based on single wagon solution, door-terminal service
Chongqing
Shanghai
Guangzhou
Shenzhen
China to Central Asia Route Example
Shanghai-Almaty
Beijing-Almaty
Rail Mode
Full Rail
Lead Time (Door-Terminal)
30 days
29 days
Est. Cost / 40’HC
$9,000
$8,700
based on single wagon solution, door-terminal service 14

15. Case study 1: Shanghai/Shenzhen to Moscow/ Novosibirsk rail transport for a cosmetic brand
Overview
Moscow
Russia
Customer: a global skin/body care company
Cargo: cosmetics
Routing: Shenzhen / Shanghai (CN) – Moscow / Novosibirsk (RU)
Lead Time: 28~32days (door-terminal)
Volume: 100 FEUs per year
Potential demand: Ocean-rail solution via Lianyungang to Central Asia (e.g. Kazakhstan) cargo from U.S. and North Asia
Novosibirsk
KAZ MN
China
Shanghai
Shenzhen
Achievement
Consolidation center built in Shanghai & Guangzhou collecting cargo from local suppliers with small volume shipment
Reduction of transit time by more than 25 days (compared to ocean-rail via Europe), and achieve reduction in transport cost at same time 15

16. Case study 2: Suzhou-Kazakhstan for a leading machine manufacturer (oversized equipment)
Overview RU
Customer: a leading machine manufacturer
Cargo: finished vehicle (Oversized)
Route 1: Suzhou – (bonded truck) – Nanjing – (rail) – Kazakhstan cities (in gauge)
Route 2: Suzhou – (bonded truck) – Alashankou – (rail) – Kazakhstan cities (out gauge)
Lead time: average 31days (door-terminal)
Aktobe
KAZ MN
Aktau
Almaty
Nanjing
Bonded truck
Rail
Suzhou CN
Achievement
Additional protective packing, packing solution designed for customer
Flat wagon lashing for the vehicles 16

17. Case Study 3: Regular block trains from Chongqing to Duisburg for leading electronics customer
Overview
Customer: a leading hi-tech producer
Goods: electronic goods (notebook)
Routing: Chongqing (CN) – Duisburg (DE) (10,800km) & on-carriage to the Netherlands
Lead Time: 22days (door-door)
Volume: FEU per train
Frequency: regular weekly RU PL BY
Duisburg
KAZ MN CN
Chongqing
Achievement
Innovative security concept based on DB Schenkersmartbox enable real-time cargo status monitoring
High flexibility to accommodate additional volume (alternative solution)
Special train
Sea-air solution
Door-door lead time reduction by days, compared to previous ocean freight
Time to market advantage
Cost of capital reduction
DB Schenker as the pioneer of block train runner on southern route 17

18. We are present on three different key lanes
Rail-Air-Solution
We are present on three different key lanes 1
From Chongqing 1
To Frankfurt/Main (FRA)
Via Almaty (ALA) International Airport
From Zhengzhou 2
To Amsterdam (AMS)
From Chengdu 3
DBSL RLF | JS 18

19. Product sheet Rail-Air-Solution 2
Relation: from China via Kazakhstan / Rail-Air mode change / Destination Europe
Product specifics
Combined rail-air container shipments
Based on blocktrain
Product type
Bonded and guarded trucking from Almaty-1 rail station to Almaty Airport
Customs transit formalities at mode- change from rail to air
Rail-Air transshipment
DB Schenker Chinatrain
Product platform
Air: 1 day Rail: 9-10 days
Single container
Optional: Winter solution
Product offer
Container provision (included)
Smartbox (included)
Audited Supply Chain Security
Services
Door-Door time: days
DBSL RLF | JS 19

20. The Eurasian Landbridge: One Team, One Mission
Thank you for your participation!
DBSL RLF | JS 20