annual report 2013 Key figures SALES REVENUES IN EUR MILLION OPERATING RESULT IN EUR MILLION

Transcription

1 annual report 2013

2 2013 april all newly acquired t 3000 finally incorporated into the european network june kombiverkehr makes european network a reality august accessible from Duisburg: miramas in france september integration of cat at munich agency october kombiverkehr heads to asia for the first time DeCember 937,671 consignments transported by deadline of Key figures SALES REVENUES IN EUR MILLION annual report 2013 OPERATING RESULT IN EUR MILLION ANNUAL NET PROFIT IN EUR MILLION EMPLOYEES (FTE) NUMBER OF CONSIGNMENTS OF UNACCOMPANIED TRANSPORT , ,212 NATIONAL TRANSPORT , ,707 InterNATIONAL TRANSPORT , ,505 2

3 contents foreword 2 BUSINESS DEVELOPMENT Volumes and financial development 10 product range Intermodal networks 20 National transport 21 International transport 26 INTERMODAL LOGISTICS MANAGEMENT International partners 40 Operations 41 Wagons and terminals 42 Equity interests in terminals 46 Information management 50 Sales support 51 Personnel Personnel development 54 Organisation chart 55 ANNUAL FINANCIAL STATEMENT Balance sheet 58 Profit and loss account 59 Audit certificate 60 appendix Corporate institutions 64 Equity interests 68 ImprINT

4 Our new transport concepts in 2013 helped us to carry on offering our customers the most tightly interwoven intermodal network withing Europe. Robert Breuhahn, managing director foreword Onward and upward we go! That neatly sums up the progress made by Kombiverkehr over the past financial year. It may have been slower than expected, but in contrast to many other companies in the railway sector traffic figures are on the rise and there is an upward trend in sales and profits. With an increase in volumes of just over one per cent, Kombiverkehr transported 937,671 consignments on Europe s railways during the past year, thus consolidating its position as the market leader in Europe. It is particularly gratifying to note that the operator of Europe s largest network managed to record increases in consignments in virtually every important transport region. Whilst it was still assumed in 2011 that the economic situation within the European Union would quickly regain the stability it had before the crisis of 2009, the realisation has hit home over the past two years that the stricken national economies of Europe are not recovering as quickly or as extensively as anticipated. Escalating inequalities in the import and export markets from and to Germany have shown widely differing progress in economic growth and in the consolidation of the budgets of individual national economies and, consequently, in the performance of the latter. Contrary to expectations the slump in Italy for example, a key trading partner, continued over the last financial year; even in France and Spain, the economy has not recovered to the degree that many experts predicted. The good news is that the first signs that the economic situation throughout Europe was becoming more stable could be detected towards the end of Further consolidation is forecast over the coming years, although the speed of the recovery will be slower and an improvement in industrial productivity will be more muted than was the case in the past. Once again, as in 2012, leading players in the rail transport sector had to battle with considerable restrictions on access to the railway infrastructure, the closure of the Brenner Pass and a number of rockslides on the Gotthard. The flood tide in eastern Germany and flooding in southern Germany and Austria paralysed large sections of the railway network in the affected area for a period of months. This led to not inconsiderable transport losses, which are duly reflected in the statistics on consignment numbers. Turning to individual markets, over the course of the past financial year national transport i.e. shipments transported within Germany and from and to the German Baltic Sea ports has enjoyed significant growth overall and now accounts for a share of over 30 per cent of Kombiverkehr s total volumes. This shows that an attractive range of products and services within Germany and in combination with the Baltic Sea ports can still divert additional traffic flows onto the railways. This trend encourages us to develop new concepts with several departures a day in the de.netdirect+ network between Germany s economic hubs, similar to the one we successfully implemented on the Cologne Munich route last year. The international trend was positive, particularly in the growth markets of western and southeastern Europe. The volume of traffic on the transport corridor between Germany and southern Europe rose to nearly 390,000 consignments during the year under report. This equates to an increase of 3.6 per cent. At this point, mention should also be made of the fact that our pioneering work to open up and develop the port of Trieste in combination with short-sea shipping to southeast Europe was rewarded; volumes on this transport axis more than doubled compared with the previous year. With a current average of five train departures a day and the opportunity of connections to over 40 locations in the international CT network, we offer our customers by far the most comprehensive range of transport products and services between Germany, Benelux, northern Europe and northern Adriatic ports with onward transport to Turkey and now, since autumn 2013, to Greece. For the first time in its history, therefore, Kombiverkehr has succeeded in providing a direct train product in combination with a short-sea connection to Greece. The expansion of our transport services to Turkey entails shorter intervals between the trains between Cologne and Trieste, whilst the train to Greece from Frankfurt via Ludwigshafen also incorporates the port of Patras into the CT network. The launch of the service between Trieste and Munich at the beginning of this year means that virtually the entire Combined Transport network is linked to the transport region of Turkey and Greece. Consistently stable demand bears out our plans to expand this transport segment in the future. We managed to maintain our position as market leader in transport services via the Brenner Pass. Having said that, there was no significant impetus for growth due to the weakness of the Italian economy and the increasing inequality in transport flows. The same is true for the Italy via Switzerland transport axis. In the light of the emerging recovery in the Italian economy, we are working in close cooperation with rail transport companies whom we have commissioned to enhance the attractiveness of these services by further increasing productivity and opening up new network options for our customer on a sustained basis. The development of transport on the western axis, i.e. the CT services with the Netherlands, Belgium, France and Spain, continues to be decidedly positive. It is now in second place among the international axes of Kombiverkehr, behind the Germany southern Europe transport corridor. With nearly 135,000 consignments, the company achieved an increase in excess of 14 per cent compared with the previous year, a remarkable increase in a competitively priced market. Our transport services to Spain on the Mediterranean and Atlantic routes are making steady progress. Last year we were also able to provide services connecting France with our location in Lovosice, Czech Republic. Shipments between Germany and the Netherlands managed to maintain their high level, although we did notice that growth in container traffic was less dynamic in the second half of the year in particular. In a similar vein, we also recorded a slight downturn in continental chemicals transport from Antwerp and Rotterdam towards the end of the year. Our hopes for a further rise in the volume of transport to France and Spain now rest on the final approval of the P400 profile and, consequently, the chance to shift semi-trailers with a corner height of four metres by rail without restriction. Services on the transport corridor to eastern Europe are shaping up to be problematic. In the past, our forecasts were based on the assumption that Combined Transport could win out against long-distance 2 Foreword 3

5 Regulations that make rail transport disproportionately expensive weaken the ability of the Combined Transport sector to compete. Armin Riedl, managing director road haulage, in spite of the high pricing pressure, due to the long distances covered by continental transport services. However, we have found increasing evidence that pricing pressure from road haulage, particularly in Poland, has reached a level that is no longer reasonable. Equally unreasonable is the fact that the purchase of train paths in central and eastern European countries incurs significantly higher costs than in many western European countries. At the same time, as a mass-capacity system the railway should be a more cost-effective solution for customers than the truck. The situation is similar on the transport services to Austria, Hungary and southeastern Europe. The trains we offer via the Balkan route, an overland route in competition with our short-sea services via Trieste, cannot gain a foothold in the market, at least not for the moment. In spite of these developments, we are convinced that the price differential at the expense of the railway is unsustainable in the medium term. This is why Kombiverkehr intends to invest in the development of individual transport routes out of a belief that, once these glaring distortions cease to exist, the railway will have a fair chance of holding its own in the market in competition with long-distance road haulage. But what about the political frameworks for German and European rail freight transport? In our view, no other mode of transport in Europe has been burdened with extra costs of this nature in so short a space of time as the railway. Countless rules and individual regulatory measures make rail transport disproportionately more expensive, thus negating the benefits of the system. The following two examples clearly illustrate this. The railway is environmentally friendly! The customers of Kombiverkehr alone prevented million tonnes of green gas emissions by switching their truck journeys over to Combined Transport last year. The railway is the only mode of transport capable of CO 2 -free operation. If the wide-ranging exemption of rail freight transport from the reallocation charge under the Renewable Energy Law (EEG) ceases to exist, however, the additional costs thus incurred cannot be passed on in the market. No other rival mode of transport finds itself confronted with this issue! Another relevant cost factor on top of energy is the charge levied by infrastructure operators for using the railway infrastructure. In contrast to road tolls, which were frozen over four years ago, train path costs are rising year on year by nearly 16 per cent in total on key Kombiverkehr routes over the last eight years. Comparable infrastructure costs on the waterways of the Rhine are unknown. Once the debate on noise emissions, particularly in densely populated and ecologically sensitive regions, had come to a head, a noise-dependent train path pricing system was hastily introduced in Germany, the purpose of which was to speed up the fitting of wagons with low-noise brake blocks. Kombiverkehr has nearly finished fitting its old rolling stock with the quiet K blocks, whilst new wagons are only supplied with whisper brakes anyway. Provision has also been made for Switzerland to convert all the wagons operating there by 2020, after which date conventional wagons will no longer be allowed to travel through the country. These measures are problematic in a wider European context: whilst Germany and Switzerland are trailblazers on the issue of noise control as is Austria, with its newly constructed, fully underground line through the Lower Inn Valley the issue is as good as irrelevant in many European countries, particularly those on the economically weaker fringes. As a consequence, rail transport companies operating throughout Europe have to do battle with uncoordinated regulatory requirements from different transport regions. Policy-makers in Germany give no clear indications as to the future development of the noise-dependent train path pricing system, so long-term cost estimates are as good as impossible from the outset. The railway is safe! As we have pointed out many times, it is the safest form of land travel at our disposal. This is borne out by statistics on the involvement of individual modes of transport in accidents in Europe. The ERTMS (European Rail Traffic Management System) was developed in the 1990s as a further step towards the harmonisation of rail freight traffic across Europe. Within this system, the ETCS (European Train Control System) is designed to ensure the safe movement of trains beyond national borders and make rail freight transport even safer a welcome concept in principle. Although ETCS was originally conceived as a means of standardising and harmonising train control, its introduction within Europe is largely uncoordinated today and is dictated by countryspecific circumstances and requirements defined by each country itself. At the same time, it is extremely expensive to refit and obtain new permits for crossborder locomotives in line with the diverse ETCS versions. For example, the Republic of Austria brought a newly built line of just 40 kilometres into service in the Alps between Kufstein and Innsbruck, which is part of the Genoa Stockholm transeuropean corridor, with an ETCS specification, even though only one type of locomotive could operate on the new line when it was opened. Whether this happens to be a locomotive from the rolling stock held by Austrian Federal Railways is anyone s guess. Would this situation even be thinkable in road haulage? Hardly! Just imagine a toll system being brought in on a section of a busy motorway in Germany but with only one kind of lorry being able to use this section! Admittedly, national and international funding programmes are available for installing the different ETCS systems in the locomotives. These do not even come close to meeting the additional costs incurred by the rail transport companies concerned, however, particularly as the newly introduced safety systems do not increase the productivity of the network in any way. The planned German Ordinance for the Handling of Substances Hazardous to Water, or AwSV for short, should also help to increase the safety of rail freight transport. After numerous discussions, some federal states are still insisting that all Combined Transport facilities should be made watertight underneath within the next ten years. At the same time, all loading areas and transhipment stations are already equipped for emergencies with the requisite technical installations, fire safety plans etc. This scheme cannot be justified from an economic point or view and the financial resources required cannot be provided by those involved. So is it back to the roads for hazardous goods? We cannot help but gain the impression that policy makers enjoy applying leverage to the rail sector when implementing regulations on issues such as safety, environmental protection and noise control. 4 Foreword 5

6 Is it because the industry puts up so little resistance? Even though rail transport causes the fewest fatal accidents across Europe, we are still investing billions in the ETCS train safety system. Although CO 2 -neutral transport is possible, an additional eco-tax still has to be imposed on purchased electricity. And even though thousands of tonnes of chemical products are transported safely by rail day by day, disproportionate additional requirements beyond the means of those involved are supposed to be implemented. As a consequence, it is neither the market nor the intermodal competition that is preventing stronger growth on the railway today, but the excessive burden of regulatory measures. currently developing creative concepts for an improved combination of train systems and short-sea services, for example. Our latest products in the Mediterranean region show that there is still untapped potential for Combined Transport. Technical innovations should boost the productivity of the system. The basic attitude of freight forwarders and carriers towards Combined Transport is positive. With the right transport policy and regulations we are sure that we can continue along the road to success with above-average growth figures. The desperately needed, efficient transport systems that we require in order to supply German and European industry must be continuously developed over a large area. Anyone who thinks that trucks alone can cope with the forecast growth in transport volumes is wrong, in our opinion. Even today, Germany s main roads are under strain and some of its infrastructure is dilapidated. And stagnating transport figures simply defer, rather than solve, the shortage of drivers. Robert Breuhahn Armin Riedl Kombiverkehr therefore calls for a German and European transport policy that implements coordinated measures on a sustained basis, monitors their overall direct and indirect impact on the transport market and offers market players long-term development prospects. We demand a level playing field so that rail freight traffic can play to its advantages in terms of safety, reliability, environmental protection and high capacity. There are plenty of positive examples of a successful shift towards the railway, an efficient and ecologically sound mode of transport. We are 6 Foreword 7

7 BUSINESS DEVELOPMENT A strong performance in the second half of 2013 put Kombiverkehr back on course for the growth of previous years. With a total of 937,671 truckloads, transport volumes rose by 1.1 per cent compared with the previous year. Market dominance assured by innovative services It is not only in terms of figures that Kombiverkehr continues to be the clear number one among Europe s CT operators. We have also managed to develop the market with innovative products and services. A new trimodal product, which incorporates ferry connections into the Germany Turkey and Germany Greece transport services, doubled the amount of traffic via the Tauern Pass compared with This also brought another increase on the southern European axis Kombiverkehr s strongest axis. Upward trend continues International transport volumes are growing in 2014, mainly as a result of the generally more stable economic situation in Europe. In spite of this, surplus capacity on the road is also putting more pressure on prices on the railway. The level of growth in Combined Transport will therefore depend on the extent to which the rising costs of lines, traction and personnel can be offset.

8 Volumes and financial development ECONOMIC GROWTH IN GERMANY BRINGS TAILWIND Kombiverkehr found itself back on the path for growth in the 2013 financial year after volumes had dwindled the year before due to the euro crisis and the closure of the Brenner Pass. In 2013 the company increased transport volumes in unaccompanied Combined Transport by 10,459 truckloads, or 1.1 per cent, compared with 2012, reaching a total of 937,671 consignments. Converted into TEU (Twenty Foot Equivalent Unit), the volume of consignments amounted to around 1.88 million TEU. With a plus of 0.7 per cent, the volume of goods transported also rose to 21.8 million gross tonnes. By opting for the climate-friendly railway, our customers reduced transport-related emissions of carbon dioxide by Volume of transport in consignments* million tonnes during the year under report. The consignments delivered removed 736 million vehicle kilometres from Europe s long-distance road network, equating to a daily average of 3,750 truck journeys shifted onto the railways. On the other hand, there was a decline in the average distance that consignments were transported. At 785 kilometres, this was 3.3 per cent below the previous year s level. As a result, transport output fell by 2.6 per cent to 17.1 billion tonne-kilometres in spite of a slight rise in total tonnage. Kombiverkehr shifted 217,841 truckloads in the national de.netdirect+ network in 2013, 0.8 per cent fewer loading units than the previous year. In contrast, volumes on the international eu.netdirect ,000, , , , ,000 Accompanied transport National unaccompanied transport International unaccompanied transport * One consignment corresponds to the capacity of a truck or semi-trailer network, including services for the German Baltic Sea ports, rose by 1.7 per cent to 719,830 consignments. Kombiverkehr s international business thus accounted for nearly 77 per cent of its total volume. A closer examination of the individual market segments in cross-border transport reveals widely differing tendencies for the 2013 financial year, as in the previous year. Above-average rates of growth well into two figures were recorded in the transport corridor between Germany and western Europe as a result of increases in the frequency of departures and better utilisation of existing transport capacity. Kombiverkehr increased the volume of consignments on all the routes in this market segment, by 50.3 per cent and 12.5 percent for France and the Netherlands respectively, for example. The volume of transport between Germany and southern Europe has likewise grown, albeit to a lesser extent. In 2013, 3.6 per cent more consignments were transported on the busiest corridor than in the previous year. However, these gains cannot hide the fact that traffic with Italy is persistently low due to the state of the economy. Even with the additional volume of transport, Kombiverkehr has not quite succeeded in recouping the losses of the previous year, which were attributable to a number of railway closures in the Alps. There was further positive development in the Tauern corridor, which was kept supplied with consignments that travel via ferries from Turkey and Greece to Trieste, where they are loaded onto our trains to Germany. Kombiverkehr transported over twice as many truckloads than in 2012 on this axis, which crosses the Alps in the east. On the other hand, it was not possible to maintain transport services for central and eastern Europe at the level of the previous year in a highly competitive market environment. POSITIVE IMPETUS FROM THE DOMESTIC ECONOMY In spite of the generally difficult economic conditions, the German economy proved on the whole to be stable in 2013, although it did turn out to be a year of two halves. Last year s downward trend initially continued into the first half of the year. During this period the gross domestic product also fell by 0.3 per cent compared with the same period the year before. Conditions did not start to gradually improve until the second half of the year. As in the previous year, the gentle pace of economic growth in Germany was underpinned by domestic demand and, first and foremost, by private consumer spending, whereas Germany s foreign trade lost its momentum during the course of 2013 against a background of continuing recession in some European countries and slowing growth in global economies; not until the end of the year did it provide positive impetus once more. Overall economic performance in 2013 ended up being only 0.4 per cent higher than in the previous year, thus remaining below the levels of past years. As a whole, this moderate economic growth had positive implications for the transport industry in Germany. The volume of freight transported by rail rose by 0.8 per cent, and thus equalled the volumes of all modes of transport. The division of the year into an economically weak first half and a stronger second half is also reflected in the growth in the volume of consignments at Kombiverkehr. The extra consignments essentially result from the growth in volumes in the second half of the year, whereas the number of Combined Transport shipments largely stagnated during the first six months of the year under report. 10 Business development Volumes and financial development 11

9 FOCUS ON QUALITY AND SERVICE A variety of factors had an adverse impact on Combined Transport during the 2013 financial year and confronted operators and traction providers with major challenges. The floods in parts of Germany and Austria once again demonstrated the vulnerability of the railway in the face of storms and natural disasters. Flooding caused massive damage to the infrastructure and paralysed over 1,000 kilometres of track in Germany until well into the autumn. Events of this nature impair the quality of train products in the affected areas, as diversions tie up additional resources which are then lacking in other places. Companies have no control over them and can only respond in the form of crisis management as quickly and effectively as possible. The same also applies to construction work in the German railway network, which has been stepped up considerably by the network operators during the year under report. If you measure the sheer number of construction schemes against the extra kilometres travelled owing to diversions, the overall distance Volume of transport in consignments , ,215 covered in the Germany railway network increased by over 25 per cent compared to normal. There were also production-related weaknesses, however, which Kombiverkehr is working hard to address in collaboration with its key service partner DB in order to bring about sustained improvements in quality. A key component of this comprehensive catalogue of measures, for example, was the prioritisation of Kombiverkehr s trains by means of a fixed allocation of locomotives within a defined production class. CT trains, which were frequently delayed, were placed under special observation as so-called UBB trains, which means that production was continuously monitored and the causes of delays examined in detail. In addition to this, DB tested various production systems in conjunction with Kombiverkehr. 719, , , , , ,212 National unaccompanied transport International unaccompanied transport 972,600 We have increased the staffing hours in Transport Monitoring and now work more closely with the operating control points run by our service providers in order to improve the quality of service for customers of Kombiverkehr. Furthermore, the train monitoring system that has been specially developed for the company is more or less ready and will soon be approved for use. In future, this system will be used to reconcile real-time information on train movements with timetable data at intervals of one minute. Kombiverkehr uses the operating information system to keep customers informed of any deviations from the timetable. OUTLOOK FOR 2014 Most economic researchers expect a moderate expansion in the German economy this year. Gross domestic product should lie somewhere between 1.5 and 2.0 per cent. Once again, the domestic economy should be the driving force, although foreign trade is also expected to provide positive impetus. The revival of the global economy and an end to the recession in the eurozone are likely to lead to rising exports. The entire transport industry will benefit from an improved overall economic situation. Accordingly, Kombiverkehr is confident about the 2014 financial year and plans, after a phase of consolidation in terms of its existing product range, to upgrade and expand the Combined Transport network by incorporating new national and international routes. The requisite terminal capacity is in principle available as a result of expansion schemes in recent years. Leading players in Combined Transport will nevertheless have to pay particular attention to a balanced price-performance ratio in 2014 to ensure that the sector does not lose ground in the competition with longdistance road haulage. The road will gain a clear competitive advantage if inadequate operational quality coincides with rising freight prices on the railway, the more so as plenty of spare cargo capacity is currently available to meet demand. If freight forwarders and carriers are to maintain their volumes of Combined Transport, network operators could refrain from passing on regular increases in energy and line prices in the market, which inevitably puts pressure on the performance of Kombiverkehr and customers. Development of financial and earnings situation During the year under report there was a small increase in sales to EUR 425,573k, which was slightly lower than the growth in volumes of 1.1 per cent. The gross profit of EUR 22,209k after deducting material costs of EUR 403,364 for bought-in freight services fell by EUR 509k compared with the previous year. The gross profit ratio of 5.2 per cent is slightly lower than last year s level. The EUR 1,945k increase in other operating income is attributable to higher earnings from wagon leasing, a larger number of leased wagons and a EUR 800k rise in the reversal of provisions. Kombiverkehr incurred personnel costs of EUR 10,024k in 2013, an increase of EUR 280k compared with the previous year. Writedowns increased first and foremost as a result of the capitalisation of 50 of the total of 100 procured wagons in the fixed assets. Other operating costs were up by EUR 1,054k to EUR 19,626k. The increase is attributable to the costs of leasing newly procured wagons for the first time, to higher IT expenditure and the costs of participating in the bi-annual transport logistic trade fair. Expenses were lower during the year under report as a result of the reversal of a claims reserve. The financial result fell by EUR 63k, as higher interest payments related to the financing of new wagons coincided with a fall in investment income. Expressed in figures, the tax burden was reduced compared with the previous year, as the impact of taxation was 12 Business development Volumes and financial development 13

10 exceptional last year. Kombiverkehr achieved a profit of EUR 775, after tax in the 2013 financial year. Asset position Total assets increased to EUR 59,511k during the year under report, which is attributable to two balance sheet extension factors. Firstly, 50 of the newly procured wagons, which were partly financed by a loan, were capitalised so that the fixed assets showed an increase of EUR 5,818 against an increase in liabilities with financial institutions of EUR 4,750k on the liabilities side. Secondly, the settlement of freight payables, which was not done until , had an effect both on credit balances with financial institutions and on accounts payable. The capital ratio is per cent. With tier one liquidity of per cent and tier two liquidity of per cent, liquid asset ratios indicate sustainable financing. Sales revenues in EUR million Business development Volumes and financial development 15

11 MY TABLE IS LAID: THANK YOU KOMBIVERKEHR Kombiverkehr even provides breakfast: whether cornflakes, coffee or marmalade, whether fruit or orange juice. The Kombiverkehr network is open to all goods. Food, car parts, furniture, steel, televisions, washing machines, letters and parcels nearly everything travels by intermodal transport. Together with its customers, Kombiverkehr has developed transport solutions that we implement on over 15,000 services day by day. Right across Europe. This ensures fresh supplies of fragile products such as medicines or glass panels and for breakfast of course! Lots of choice every day my family and I think it s great that more and more products and freight travel by truck and train. carolin broeker, housewife and mother of two children

12 PRODUCT RANGE Kombiverkehr has been able to get back on course for growth after the economic crisis-induced fall in volumes of the previous year for one clear reason: the flexibility with which Kombiverkehr s optimised product range can respond to fluctuating demand and the changing requirements of the European forwarding industry. Refinement of proven concepts Core elements of flexible product management were the further linking and optimisation of national and international gateways. It was also possible to refine proven transport services by making intelligent changes to concepts, one example being the restructuring of shipments between the Rhine-Ruhr industrial hub and Hamburg/Lübeck or between Germany and Austria. Western Europe as a driver of growth Whilst eastern European transport was adversely affected once again by intensified pricing pressure from road hauliers, the western European axis proved to be a driver of growth with double-digit gains. In terms of growth, it was for the first time the secondstrongest sector at Kombiverkehr. The remaining axes northern and southern Europe also chalked up solid gains of nearly four per cent.

13 Intermodal networks National transport BACK ON COURSE FOR GROWTH After a slight fall in volumes during the preceding financial year, Kombiverkehr managed to turn the tide immediately in The total number of containers, swap bodies and semitrailers moved by rail in unaccompanied Combined Transport increased by 1.1 per cent during the period under report. Altogether, therefore, 937,671 consignments (1.88m TEU) were transported in the national and international network of Kombiverkehr over the course of the year. This equates to an increase of 10,459 consignments compared with the previous year. Given that the market environment in Europe is still very tough with actual earnings falling, private consumer spending in decline and shrinking domestic demand in many European countries as a result the statistics for the volume of traffic handled by Kombiverkehr are exceedingly positive. Kombiverkehr was able to counteract the further slow-down in foreign trade, particularly with countries in southern Europe, and the ensuing decline in transport demand with significant volume increases in other market segments. Once again, the drivers for growth were the transports to and from Belgium, the Netherlands and France, although above-average rates of growth were also observed in eastern European destinations, including services between Germany and Hungary and those to Turkey. continuously expanded and adapted the existing gateway system to meet the requirements of the European forwarding industry for efficient Combined Transport services. The company was able to keep the volume of national Combined Transport more or less constant during the 2013 financial year. With a total of 217,841 consignments converted into 20-foot units, this equates to around 435,700 TEU 1,866 fewer CT consignments were transported in the national network than the previous year, a fall of 0.8 per cent. de.netdirect+ AS THE BASIS FOR A SUCCESSFUL GATEWAY NETWORK We are making ever better use of the existing railway infrastructure with our gateway concept to achieve sustained, long-term growth. The use of different hubs to effectively link several terminals into one large overall network gives our customers more options for shifting their shipments onto the environmentally friendly railways. At the same time, we are also cutting overall journey times by increasing capacity and reducing transfer times. Every day, 21 terminals throughout Germany are linked to one another with the help of 72 terminal-terminal services in Kombiverkehr s national block train network. Over 200 weekly block and multigroup trains in our de.netdirect+ network form the basis for our closely interwoven international gateway services. On average, 893 truckloads are shifted from road to rail per day of transport as a result of our national Combined Transport services. This would be the equivalent of a 45-kilometre line-up of trucks on the road. Volume of national transport (excluding Baltic Sea transport) in consignments In February 2013, a new train concept with connections to northern Europe was launched between the Rhein-Ruhr industrial regions and Hamburg/Lübeck. Not only does this increase capacity on the route, it One of the factors for the upward trend in volumes was the consistent, needs-driven development of existing transport services, including those on the axes with Hungary and France. The main focus here was the optimisation of transport through major hubs. Over the course of the year, Kombiverkehr , , , Product range Intermodal networks 21

14 KIEL LÜBECK ROSTOCK DÖRPEN BREMEN HAMBURG also shortens the time taken to transfer to other national and international trains. Between Duisburg and Hamburg there is now a second daily departure three times a week, while the Cologne - Lübeck route is again operating five days a week in both directions. Kombiverkehr has taken account of the growing importance of the Port of Kiel for Baltic Sea traffic by introducing a new direct train service for Combined DUISBURG NEUSS MARL WUPPERTAL KÖLN FRANKFURT SCHKOPAU LEIPZIG Transport to and from Duisburg. A block train has been running between the Port of Kiel and Duisburg three times a week since February Arrival and departure times are coordinated with the various ferry services in the Port of Kiel. By introducing this new service, we are also taking pressure off the existing daily CT shuttle between Kiel and Hamburg- Billwerder, which provides connections from Kiel to many more national and international destinations. LUDWIGSHAFEN KARLSRUHE KORNWESTHEIM STUTTGART ULM MÜNCHEN BASEL Kombiverkehr direct train service Antenna service with partner company 22 Product range National transport 23

15 ENVIRONMENTAL PROTECTION LIVED OUT: THANK YOU KOMBIVERKEHR Refrigerated trailers with a self-sufficient energy supply transported in pocket wagons that will easily accommodate megatrailers as well: Kombiverkehr was heavily involved in this development. Because it is helping to substantially improve the climate balance of sensitive goods transport. Compared with road-only transport, Kombiverkehr reduces the harmful emissions produced by one shipment by more than two thirds. Over one million tonnes of CO 2 were saved in this way in And the de.neteco+ product even makes completely CO 2 -free rail transport possible. My customers want quality, freshness and a clean environment, which is why I have fruit and vegetables transported by an eco-friendly combination of road and rail. ali aslan, Wholesale greengrocer

16 International transport The volume of international transport rose during the period under report by 1.7 per cent from 707,505 consignments in 2012 to 719,830 consignments in This amount equates to around 1.44 million TEU. Progress in our four business areas of cross-border transport to and from Germany has varied very widely. Whilst the western European axis again chalked up the biggest gains at 14.3 per cent, CT transport volumes to eastern Europe fell by an above-average 17.9 per cent. After a steep decline the year before last, business with northern and southern Europe rose slightly by 3.9 and 3.6 per cent respectively. NORTHern EUROPE AND BaltIC STATES Germany s three Baltic Sea ports of Kiel, Lübeck and Rostock form the central hub of Kombiverkehr s services between Germany and the northern European and Baltic states. The numerous ferry connections between these ports and a whole series of correspondence ports along the Baltic coast make them natural bundling points for our CT services to and from Scandinavia and to the Baltic states. We currently handle all the traffic in this corridor through these three ports. TRAFFIC WITH SWEDEN AND NORWAY ON THE UP AGAIN Kombiverkehr significantly improved the volume of transport in the corridor between Germany and the northern European and Baltic states during the 2013 financial year, although measures to transfer transport operations to new partners have not yet been finalised. Compared with the previous year, volumes rose by 3.9 per cent to 96,829 consignments, or 193,700 TEU. In December 2011, Kombiverkehr had to transfer network operations in Sweden from CargoNet to its new partner Intercontainer Scandinavia AB (ICS). After ICS filed a bankruptcy petition at the start of 2013, it was necessary to find new partners to operate the services in Sweden and with Norway. This went relatively smoothly, as Kombiverkehr was able to build on its previous collaboration with the Volume of international transport (including Baltic Sea transport) in consignments ,554 71, , , , ,837 Baltic Sea transport with connection to Northern Europe Bilateral transport 719, , ,385 Swedish network operator Green Cargo AB. A complete transfer nevertheless took quite some time, as Green Cargo had to set up a number of new services. As well as the terminals of Luleå, Sundsvall and Umeå situated in northern Sweden, there are now links to terminals in south and central Sweden (Årsta, Gävle and Sandarne) via Green Cargo s single-wagon network, usually with five departures a week. Although the quality of these services is mostly satisfactory, consignments that have only been transported in the single-wagon network up to now are set to be transferred gradually onto block train services due to the current upward trend in traffic volumes. The ferry port of Trelleborg serves as an important hub terminal here for all onward transports within Sweden and to Norway. In addition to the above-named terminals, which are linked to Kombiverkehr s European network by ferry via Trelleborg and then by rail, it is still possible to reach the terminals of Malmö and Göteborg (via Kiel) by direct ferry services from Germany. As well as many routes within Sweden, Kombiverkehr has again been providing transport services from and to Alnabru (Oslo) in Norway since September The route via Trelleborg to Alnabru and back is likewise run by our Swedish partner Green Cargo AB with a block train service with three departures per week in each direction. In addition to this, it has also been possible to book end-to-end transport to the Norwegian terminals of Bergen, Bodø, Fauske, Kristiansand, Mo i Rana, Narvik, Stavanger and Trondheim with Kombiverkehr since April CT services between Germany and Denmark were also expanded last year. As well as the existing terminals of Taulov and Høje Taastrup, there is now a new connection to the north Danish terminal of Rønland, which is linked to Kombiverkehr s international network by two departures a week in each direction. Given the excellent growth in volumes on the Duisburg-Ruhrort Hafen Lübeck-Skandinavienkai service and on the first cross-border block train from Kiel-Schwedenkai to Verona, we were able to substantially improve the product range on these routes. Kombiverkehr was able to increase the number of departures between Duisburg and Lübeck to six a week in each direction in August 2013 more quickly than planned. This means our customers can now have their loading units transported by rail from Duisburg on Mondays to Saturdays and in the opposite direction on Mondays to Fridays and on Sundays. Freight forwarders and carriers have also been enjoying the benefits of improved journey times on the direct train between Kiel and Verona since January Thanks to an optimised timetable, shipments in Italy are available for collection eleven hours earlier than before. On Fridays, the loading units on the trains will be ready in Verona at 03:00 in the morning instead of 13:00 hours. This means that it is now possible to make deliveries anywhere in northern Italy on the same day rather than after the weekend, as was usually the case previously. 26 Product range International transport 27

17 CENTRAL AND EASTERN EUROPE With a fall of 17.9 per cent, Kombiverkehr recorded a decline in volumes on the intermodal trains between Germany and the countries of central and eastern Europe in the 2013 financial year. In total, 98,822 consignments were transported over the course of the year. This equates to around 197,600 TEU. Our block train business with Hungary continued to grow, however, even in this persistently tough market environment of low freight costs in road haulage and increasing competition on the railway. RESTRUCTURING OF AUSTRIAN TRANSPORT SERVICES Unaccompanied Combined Transport between Germany and Austria, which we operate in conjunction with Rail Cargo Group, was down by around 22 per cent in the previous financial year compared with the volume of transport the year before. The total volume was 50,433 consignments, or around 100,900 TEU. One of the reasons behind this downward trend was the changeover to single-wagon operation implemented by our partner RCA of the Austrian Wels - Villach und Wels - Graz gateway services inside Austria, which are of key importance to our customers. The ensuing longer journey times for freight coincided with higher transport prices, leading to shipments being shifted back onto the roads. The drop in volumes over the past two years eventually made a restructuring of existing services inevitable. A new production concept for continental transport between Germany and Austria, which was introduced in April, has since reduced the overall journey times of consignments between the two countries and significantly improved the flexibility of intermodal transport. Whilst there are three established weekly departures from Ludwigshafen KTL to Wels, we now offer seven weekly departures from Duisburg-Ruhrort Hafen and six from Neuss- Hessentor to Wels as a result of the restructuring. The new system provides for five new shuttle trains a week to run between Wels and Vienna, which are able to carry consignments from Neuss, Duisburg and Ludwigshafen directly on to Vienna. The trains are routed through the central gateway an added advantage for customers as they can now travel to the Austrian capital five times a week with no loss of time, in contrast to the previous direct train, which only went from Neuss to Vienna three times a week. The new concept makes it possible to have staggered closing times for acceptance in Duisburg and Neuss and increase the number of departures to Wels from Neuss from five to eight. Truck shipments thus have faster connections to the next train. At the same time, there are improved links inside Austria with Vienna for trains from Ludwigshafen. Whereas consignments on the trains between Ludwigshafen and Wels were previously transported on to Vienna on single wagons, the new direct train service now makes their journey faster and more reliable. This concept has allowed transport capacity on the corridor between Germany and the Austrian commercial centres of Linz and Vienna to be maintained at a more or less constant level, with 36 departures a week in each direction. As well as the eight train pairings between Neuss and Wels/Vienna, five train pairs travel between Duisburg and Wels/Vienna, three between Ludwigshafen and Wels, and two between Rostock and Wels. HUNGARIAN SERVICES STILL GROWING Kombiverkehr bucked the general trend for transport in central and eastern Europe by achieving a 15.3 per cent growth in volumes to 14,958 consignments in the corridor between Germany and Hungary in the 2013 financial year. This equates to approximately 30,000 TEU and means that the previous year s rate of growth was nearly matched. This shows that switching shipments between Neuss and Budapest to direct train services, which was implemented in 2013, has already more than paid off. Whereas loading units previously had to change onto other trains in Wels or Vienna, the restructuring carried out in February 2013 made it possible to achieve a commercially marketable A-C journey time with late closing times and very early collection times for consignments, both in Neuss and in the terminal of Budapest-Bilk, thus reducing overall journey times considerably. The service is currently operated five times a week in both directions. NEGATIVE MARKET PRICE TREND HITS POLISH SERVICES The volume of transport on the Germany Poland corridor sank to 8,057 consignments, or around 16,100 TEU. After a disproportionately sharp rise in figures during the 2012 financial year, Kombiverkehr was forced to record an overall drop of 12.2 per cent in the current financial year. The introduction of an improved production concept, which includes end-to-end traction across national borders with only one responsible traction provider, certainly brought noticeable improvements to the punctuality of our services. However, keen pricing competition in the end-to-end road freight haulage sector affected the capacity utilisation of our trains, with customers forced to shift volumes from the railway back onto the roads as carriers exerted pressure on the market. PRICE WAR SPREADS TO CZECH SERVICES The block trains used in Combined Transport between Germany and the Czech Republic, which we operate together with our partner Bohemiakombi, transported 18,555 consignments (37,100 TEU) in the last financial year, around 11.4 per cent less freight than the year before. The decline is mostly attributable to the intense pricing competition on the road and railway, although construction work on the track and floods also played a part. The Duisburg Lovosice and Hamburg Lovosice block trains form the centrepiece of our intermodal freight transport services for the Czech Republic. The sluggish European economy has resulted in surplus capacity on these routes, to which the road freight transport sector in particular has not properly adapted. There was also a range of new train services in Combined Transport to and from the Czech Republic. The pressure on freight rates increased substantially as a result. Since Kombiverkehr had no wish to follow this downward spiral in market prices, it was inevitable that shipments would be moved back onto the roads. 28 Product range International transport 29