News Service. The new DB: Satisfied customers for a successful future. The details of DB's customer and quality campaign

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1 The new DB: Satisfied customers for a successful future The details of DB's customer and quality campaign 1. DB will make its train service much more punctual Deutsche Bahn will be making its train service much more punctual, particularly in long-distance passenger transport. The company is restructuring all its operational workflows to this end. The objective of all the measures in this area is to secure the unrestricted availability of rail infrastructure and trains by DB will be deploying new digital technology and mobile task forces to demonstrably lower the number of technical defects on both trains and infrastructure. By setting up new local maintenance and repair teams outside DB's depots and making better use of depot capacity during train downtime, DB intends to lower the number of failures and defects in drive systems, lavatories, HVAC systems, food service appliances and other important components to zero over the medium term. Timetables will also be designed to be more reliable, with more buffer time built in before stops at busy rail hubs. Better construction management is also key to raising the on-time rate, so DB will cluster not just large construction projects in advance, but smaller ones as well. Set windows in the timetable will be better utilized, and a tool for identifying infrastructure downtime will optimize maintenance work. Special teams assigned to the ten key hub stations in Germany starting next year will focus exclusively on making sure that trains depart on time. Dedicated staff will also be deployed at signal towers, stations and train provision depots daily from 5:00 am to 9:00 pm starting in New digital timetable and operations management systems, in combination with preventive measures, will also raise the availability of the rail network considerably. A new diagnostics and analytics platform, known as "DIANA," will reduce the number of rail switch failures by up to 50% by continuously monitoring the status of the switches and predicting potential failures well in advance. By 2020, this new technology will be installed on 30,000 switches along the highest-capacity lines. Objects on the track and the theft of metal infrastructure components are common causes of major delays. New fiber-optic-cable-based technology will make it possible to detect infrastructure changes directly and repair damage significantly faster than before, and the entire network will be equipped with this technology by the end of DK/MW/JK 1/6

2 Many of the line closures over the past two years were due to trees uprooted during storms, so Deutsche Bahn will also be implementing better vegetation management. The current hot spots will be identified and the vegetation there cut back in line with environmental considerations. This measure is also intended to lower the number of delays and cancellations considerably. DB also is also planning to introduce a new train towing service over the coming years, comparable to towing services used when road vehicles break down. This service will clear the lines more quickly for other trains and thus raise punctuality. New computerized driver assistance systems will also help in this regard: starting in 2020, data will automatically be forwarded to train drivers to ensure that even when disruptions occur, the roughly 40,000 train journeys each day can be carried out as on time and energy-efficiently as possible. The many new measures are targeted at raising average annual punctuality to 80% in long-distance passenger transport in The medium-term target for the period until 2020 is 85% for long-distance transport, and no less than 95% for regional transport. Such improvements will raise the probability of passengers making their connecting trains to well over 90%. 2. DB will quickly and noticeably improve the information it provides to travelers Customers expect to receive consistent, on-time, reliable information about their individual trips, and DB is setting up a new technical platform to provide precisely this service. Starting in 2016, customers will all receive on-time, accurate information about delays, changes to train car sequence, and the next trains stopping at the platform whether they use mobile apps, digital information channels such as DB Navigator or bahn.de, or information provided by DB employees on the train or at the station. Information about last-minute platform changes will also be much more reliable and available on all customer interfaces in Over the years to follow, data will be collected and processed automatically to ensure that it is error-free. And by the end of 2016, the platform displays at all the large long-distance stations will show information for up to three trains, instead of just one. Big data analytics will also further improve projections for estimated times of arrival and departure over the medium term. "Live-Tickets" will inform travelers in real time, via all the digital customer interfaces available, about any changes in their connections, including any ticket changes that become necessary. To make this possible, DB will be setting up a new sales platform over the coming 2015 DK/MW/JK 2/6

3 years which will make proactive, customized and consistent customer management possible. The "line agent," which was successfully piloted in regional transport in Bavaria, will be rolled out step by step in all DB's other regional service. The line agent is an app that pushes live updates to passengers' smartphones, informing them about possible disruptions and suggesting alternate routes. It is particularly useful for commuters, allowing them adapt their routes to work as needed. A new feedback app will also be developed for all DB's passenger transport customers to use. A new database will offer a standardized platform for processing customer feedback throughout all DB's passenger transport services to ensure that complaints, for example, are forwarded straight to the relevant department at the DB Group and can be responded to right away. 3. DB will create the largest WiFi network in Germany, "WLAN@DB" DB will substantially improve cell phone and mobile internet reception on ICE trains in 2016 by installing better receiver technology. Starting in late 2016, DB will also be upgrading WiFi receiver technology on its trains and offering free, stable internet access for all ICE passengers. The free infotainment portal currently available on ICE trains will be expanded over the coming years to make it a central platform for all long-distance trains, regional trains and stations with WiFi access. The infotainment portal currently offers free access to live journey and connection information, news from German public TV, and entertainment options such as the digital edition of DB's customer magazine. Starting in late 2016, DB's customers will also have free access to a broad selection of movies and music. A pay-per-view movie database with current blockbusters will also be available. DB also plans to offer its own additional value-added services such as an on-board refreshment ordering system, a system for ordering mobility services in advance, active routing and indoor navigation at the station and to integrate third-party e-commerce services. Long-distance trains, stations and with the support of public transport authorities regional trains will be equipped step by step between now and Ultimately, all it will take is a single click for travelers to access the largest mobile WiFi network in Germany and use "WLAN@DB" seamlessly throughout their entire journey. And an additional click will give travelers volume-based internet access at the station and on the train. 4. DB will substantially expand its on-board service A large-scale program will be launched in the second quarter of 2016 to eliminate all the defects on DB's long-distance trains. The program will not only include the usual maintenance and repair service to ensure safe operations, but 2015 DK/MW/JK 3/6

4 will also address any problems with on-board food service equipment and lavatories. New local maintenance and repair teams outside DB's depots will help ensure that quality remains at this higher level by utilizing night shifts during which trains are not running to rectify any additional inconveniences that may have arisen. A system will also be put in place to monitor which depots have maintenance capacity available and assign long-distance trains to those depots wherever possible. The objective is to make major improvements to the reputation of DB's long-distance rail fleet. In addition, logistics processes will be optimized to substantially improve the availability of products in on-board restaurants and bistros. Customers who have smartphones and online tickets will have the option of using self check-in when they board the train, meaning their tickets will not need to be checked manually. This will give train attendants more time to better serve passengers. And DB will partner with other companies from the service sector, such as hotels and restaurants, to offer its employees training to boost service orientation. Regional transport will also be included in the improvements to products and services: mobile maintenance teams will be deployed here too to demonstrably raise the availability of regional trains and S-Bahns. WiFi in regional transport will be expanded step by step, seat reservations will be introduced, and services used to inform customers of disruptions will be modernized, for example with push services for cell phones. 5. DB will make major improvements to station cleanliness, comfort and convenience Clean and pleasant stations are just as essential to customer satisfaction as ontime, comfortable trains. To this end, DB will raise elevator and escalator reliability significantly at stations in high-population areas, to well over 90% next year. The improvements will be made possible by substantial expansions to oncall repair service, which will add an additional shift and weekend service. Elevators and escalators will also be monitored automatically in real time, and spare part availability optimized, to identify potential problems right away and quickly repair them. Restrooms will be kept noticeably cleaner. Deutsche Bahn will also be investing hundreds of millions of euros in a comprehensive renovation program for 31 underground S-Bahn stations used by a total of two million passengers a day. These efforts will benefit commuters in particular in cities such as Hamburg, Frankfurt, Stuttgart and Munich. In addition, a long-term program will be introduced to make 21 transfer stations in Germany more pleasant for the passengers waiting there. Waiting areas in the passenger buildings and on the platforms will be made more open and 2015 DK/MW/JK 4/6

5 inviting. WiFi access and USB power outlets, as well as infrared heating and allaround shelters to protect against wind and weather, will also be part of the program. The number of travelers with reduced mobility has risen sharply in recent years, and DB will respond by hiring an additional 40 employees to focus on making travel as pleasant as possible for these travelers. The objective is to ensure stepless access to all 50 long-distance stations by As part of its station campaign, DB will be offering new service for customers who live and work outside Germany's major cities. DB is working in partnership with the German federal states to shift some two million people to rail traffic by building 350 new station stops throughout Germany. The program has already started with a promising pilot project in partnership with the federal state of Bavaria, and DB has begun talks with 11 other federal states. 6. DB will return rail freight transport to a path of success DB is completely realigning the business model at DB Schenker Rail. The new model will simplify the production system dramatically, making it less prone to disruption, and will also improve sales. Rail freight transport will remain aligned to the European market, utilizing its integrated network to tap growth potential on Europe's international corridors. The objective is to reach 95% fulfillment of the service commitment made to customers. For traffic that can be planned far in advance, DB Schenker Rail will be introducing a stable quality network with an annual timetable and set frequencies of service. This core network will account for a large percentage of today's traffic. DB will of course continue to offer ad hoc service, but a check of all the necessary resources will need to be carried out and a specific production concept established before orders are accepted. The quality of delivery will also be the key priority here. End-to-end responsibility along each corridor will make all-in-one traffic management possible, stabilizing production processes. And greater flexibility in the deployment of train drivers will also make service more efficient. By raising network capacity utilization, regaining market shares, establishing professional yield management and strengthening its European network, DB Schenker Rail will be in a position to outpace European market growth by around 1% by 2018 and DB will deliver on its objective of shifting more freight traffic to rail. 7. DB will secure jobs by offering more flexibility, and introduce a new bonus system 2015 DK/MW/JK 5/6

6 To reduce competitive disadvantages, DB will be focusing more on flexibility throughout the entire Group. There will be more variety in shift schedules, for example to improve train maintenance by deploying mobile maintenance teams. There will also be a more flexible approach to start times, end times and break times. Opt-out clauses in existing collective bargaining agreements will be utilized to this end. The objective is to raise productivity and competitiveness, particularly at DB Schenker Rail. DB will also allow its managers and employees to share more in joint business success. Performance-based pay for managers at companies in rail operations in Germany and internal service providers will undergo a fundamental shift starting in Customer satisfaction, along with joint overarching quality and service targets, will receive the same weight as economic targets in performance-based pay. 8. Satisfied customers are essential to DB's economic success By speeding up innovation, following through on digitalization and making major investments in better quality and service, DB intends to secure many more satisfied customers. In a nutshell: better quality means more customers, and thus greater economic success DK/MW/JK 6/6