1db schenker, august 2008 berlin, august 2008 deutsche bahn transportation and logistics division...
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1DB Schenker, August 2008
Berlin, August 2008
Deutsche Bahn
Transportation and Logistics Division
The Transportation and Logistics Division of Deutsche Bahn
2DB Schenker, August 2008
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approved
(DB 2008)
3DB Schenker, August 2008
Strategic Focus
Brief Description of the Business Units
Trends in the Transportation and Logistics Market
2.
Transportation & Logistics within the DB Group
1.
4.
3.
4DB Schenker, August 2008
Deutsche Bahn in 2007: We are present in three segments of the transportation market
DB AG serves as Management Holding
Vertically integrated Group structure
Ratings: Aa1 / AA
No. 2 European rail passenger transport
No. 1 European local public transport
No. 2 European passenger transport
No. 1 in European transport infrastructure company
No. 1 in European rail freight transport
No. 1 in European land transport
No. 2 in airfreight worldwide
No. 3 in ocean freight worldwide
No. 6 in contract logistics worldwide
As of December 31, 20071) Difference between totals for business categories and DB Group due to effects of other activities/consolidation2) EBIT 2007 before adjusting for one-time effects, EBIT after one-time effects: EUR 2.895 bn
1)
72.7
5.2
929
1.5
Cap. Expenditures(EUR bn)
6.3
EBIT (EUR millions) 2) 2,370
Employees (‘000)
237.1Employees (‘000)
52.0Cap. Expenditures(EUR bn)
0.7
EBIT (EUR millions) 2) 756
Employees (‘000)Cap. Expenditures(EUR bn)
EBIT (EUR millions) 2)
Employees (‘000)
88.2Cap. Expenditures(EUR bn)
0.4
EBIT (EUR millions) 2) 670
Revenues (EUR bn)
31.3Revenues (EUR bn)
11.7Revenues (EUR bn)
Revenues (EUR bn)
17.9
(DB 2008)(DB 2008)
5DB Schenker, August 2008
CorporateFunctionsCorporateFunctions
ServiceFunctionsService
Functions
New Corporate Structure
Deutsche Bahn AG
InfrastructureEconomic andPolitical Affairs
Finance/Controlling Human ResourcesChairmanand CEO
DB Mobility Logistics AG
Business Units
DB Bahn Urban
DB BahnRegional
DB BahnLong-
Distance
DB Services
DB Schenker Logistics
DB SchenkerRail
DB NetzeTrack
DB NetzeStations
DB NetzeEnergy
Business Unit
DB Bahn Sales *
DB Netze Projects *
PassengerTransport
Transportation and Logistics
Finance/Controlling
Chairmanand CEO
Human Resources
and Services
* Service center
(DB 2008)(DB 2008)
6DB Schenker, August 2008
15.5
23.024.0
25.1
30.1
2000 2003 2004 2005 2006
DB Schenker(~55%)
DB BahnDB Netze
(~45%)
31.3
2007
DB Group revenues show excellent growth, particularly in the logistics sector
DB Group Revenuesin € bn
DB Schenker’s revenues increased from € 3.8 bn in 2000 to € 17.9 bn in 2007
due to acquisitions and organic growth
Revenue DB Bahn and DB NetzeRevenues DB Schenker
(DB 2008)(DB 2008)
7DB Schenker, August 2008
2007 was a very successful year for the Transportation and Logistics Division
Employee figures: average no. of full-time employeesSource: 2007 Annual Report
Land Transport Air/Ocean
Freight
Transport & Logistik - 2007
Contract Logistics/SCM Rail Freight Intermodal
Rail Freight Transport Integrated Logistics
3.9 (+2%)
59.328.9 Employees ('000)Employees ('000)
External revenues (€ bn)
14.0 (+5.9%)External revenues (€ bn)
External revenues (€ bn)
Employees ('000)
18 (+5.6%) 88.2EBIT (€ mn) 670
217EBIT (€ mn) 453EBIT (€ mn)
(DB 2008)(DB 2008)
8DB Schenker, August 2008
DB Schenker is represented in over 130 countries at more than 2,000 locations worldwide
(DB 2008)(DB 2008)
9DB Schenker, August 2008
Europe: ~75 %Germany France Sweden Netherlands
Austria Finland Poland Norway Italy UK Switzerland
Belgium Others
Asia-Pacific: ~14 %China Singapore Malaysia Thailand India Japan Philippines South Korea Indonesia Others
Australia New Zealand
The Transportation and Logistics Division has a global workforce of approximately 88,000 employees1)
Others > 1 % South Africa
Others
Americas: ~11 %USA Canada Brazil Mexico Chile Argentina
Others
1) full-time employees, as of 12/31/2007
(DB 2008)(DB 2008)
10DB Schenker, August 2008
The Transportation and Logistics Division is managed by the Division Board
DB Schenker LogisticsDB Schenker Rail Freight
Transportation and Logistics Division Board
Intermodal Land Transport
Air/Ocean Freight
ContractLogistics/SCM
Rail Freight
CIOHuman
Resources Finance/
Controlling Chairman
Dr. JürgensDr. Kremper
Dr. Bensel
Nutzinger2 Dr. Lieb1 Dr. Trefzger
Reichel Wurst Schumann
1 Joint function as head of business unit and CEO
2 From 1 January 2009, up until 31 December 2008 temporarily headed by Dr. Trefzger
Strategy Transportation and Logistics - Marschall
Finance/Controlling Rail FreightAnslinger
Finance/Controlling LogisticsDr. Freytag
Communications – Dr. Lüssenhop
Division Control – Dr. Hoppe
International Affairs/Network Management - Dr. Wolff
peramanent observers on the Division Board
(DB 2008)(DB 2008)
11DB Schenker, August 2008
The Transportation and Logistics Division in Figures (I)
312.8 million tons1) of rail freight transported by DB Schenker in 2007
more than 5,000freight trains each day
2,000,000new automobiles transported by rail transports each year
Approx. 60 percent of the transport performance is international
1) Gross tons
(DB 2008)(DB 2008)
12DB Schenker, August 2008
The Transportation and Logistics Division in Figures (II)
more than 2,000company locations in some 130 countries worldwide
70 million shipments in European Land Transport in 2007
1.3 million tonsof air freight shipped by DB Schenker in 2007
1.5 million containers in global ocean freight
Correct as of: 31.12.2007
(DB 2008)(DB 2008)
13DB Schenker, August 2008
Strategic Focus
Brief Description of the Business Units
Trends in the Transportation and Logistics Market
2.
Transportation & Logistics within the DB Group
1.
4.
3.
14DB Schenker, August 2008
100,000fewer truckloads daily on Europe’s roads, and
21,000 tons of CO2less each day as a result of DB rail freight services
33% reductionin specific energy consumption from 1990 to 2006 on rail freight services
DB generates sustainable transport and disconnects transport growth from environmental damage
Globalization
Climate Change
Deregulation
Megatrends in freight transport market
Source: Sustainability Report 2007
(DB 2008)(DB 2008)
15DB Schenker, August 2008
Globalization is driving increasing internationaltransport flows and growth rates
Canada
USA
Western Europe
Japan
AsiaSouth America Africa
Near and Middle East
Eastern Europe
Source: McKinsey “Deutschland 2020“
Canada
USA
Japan
AsienSouth America
Africa
Near and Middle East
Eastern Europe
Australia/ New Zealand
Western Europe
USD 50 – 100 bn USD 100 – 300 bn
Scale equals relative share of world trade
USD 300 – 1,000 bn USD 1.0 – 1.2 trillion USD 1.2 – 2.0 trillion
USD 50 – 100 bnUSD 100 – 300 bn
Scale equals relative share of world trade
2005 – USD 13.5 billion1980 – USD 2.4 billion
Exports and trade flows
2005 – 13.5 Trillion USD1980 – 2.4 Trillion USD
(DB 2008)(DB 2008)
16DB Schenker, August 2008
Traffic flows in seaport hinterland services in particular will have significantly increased by 2015
Rail growth – forecast for 2015 compared with 2004 to/from or through Germany
Berlin/Brandenburg
Austria
Switzerland
Legend> 5 trains/week> 12 trains/week> 25 trains/week
Hungary
Northern PortsWestern
Ports
Italy
W Lower Saxony
Denmark
Poland
Czech RepBavaria
Baden-Württembe
rg
Saxony
Saxony Anhalt
France
Slovakia
N
Forecast Western ports (Rotterdam, Antwerp,
Zeebrugge, Amsterdam) Growth 2004 - 15: approx. 12% trains/week
p.a. TOP 5: North Rhine-Westphalia, Austria,
Rhineland-Palatinate, Italy, Switzerland The top 5 will account for 79% of the total
volume by 2015
Increased Relocation of transport services to/from Austria handled by the Northern ports has been assumed
Forecast Northern Ports (Bremerhaven/Hamburg)
Growth 2004 - 15: approx. 13% trains/week p.a.
TOP 5: Bavaria, Czech Rep., Baden-Württemberg, Saxony, Poland
The top 5 will account for 67% of the total growth in volume by 2015
Rail growth2004-2015 in trains/week
Source: DB AG
> 50 trains/week> 100 trains/week
North Rhine-
Westphalia
HesseRhineland
-Palatinate
(DB 2008)(DB 2008)
17DB Schenker, August 2008
DB Group has assumed a pioneering role in protecting the climate and continues to reduce its specific CO2 emissions
2005 Energy Saving Program
2020 Climate Protection Program
-25.9%
20062002
-20%*
-11.4%
1990
2020
Specific CO2 reduction
Specific CO2 reduction
*Expected specific CO2 reduction
(DB 2008)(DB 2008)
18DB Schenker, August 2008
DB is the second largest transportation and logistics company worldwide
Top players in transportation and logistics worldwideRevenues in € bn
Kühne+Nagel
DHLLogistics
Union Pacific
BNSF Railways
YRC Worldwide
Ceva
CSX Corporation
SNCF
Nippon ExpressDistribution &
Transportation
Source: annual reports 2007; (1) End business year 03/31/2008, without ocean carriers
(1)
# 1 Rail freight transport in Europe
# 1 European land transport # 2 Global air freight # 3 Global ocean freight # 6 Global contract logistics
25.7
12.6
11.1
10.6
10.1
7.7
6.8
6.6
6.3
17.9
(DB 2008)(DB 2008)
19DB Schenker, August 2008
Rail(Europe)
Contract logistics(Global)
Air freight (Global)
Land Transport (Europe)
Ocean freight (Global) + 8.0%
+ 7.5%
+ 5.4%
+ 6.2%
+ 2.4%
Performance of transportation and logistics market (CAGR 2007 - 2012)
Enormous growth opportunities, particularly in Asia
Liberalization and M&Aprocess in Europe will lead to more growth for DB
Excellent potential in Eastern Europe
Source: DB AG
All business units of DB Schenker operate in growth markets
(DB 2008)(DB 2008)
20DB Schenker, August 2008
DB Schenker is very well positioned in all business units
Market position (€)
(1) DHL
(2) CEVA Logistics
(3) Kühne+Nagel
(4) Wincanton
(5) Ryder
(6)
Market position (TEU)
(1) Kühne+Nagel
(2) DHL
(3)
(4) Panalpina
(5) UPS
Market position (t)
(1) DHL
(2)
(3) UPS
(4) Panalpina
(5) Kühne+Nagel
Market position (tkm)
(1) Intermodal
(2) Trenitalia
(3) SNCF
(4) SBB Cargo
(5) RENFE
Market position (€)
(1)
(2) DHL
(3) DSV
(4) Dachser
(5) Geodis
Market position (tkm)
(1)
(2) PKP
(3) SNCF
(4) Trenitalia
(5) ÖBB/RCA
# 2 in global air freight
# 1 in European land transport
# 3 in global ocean freight
# 6 in global contract logistics
# 1 in European rail freight transport
# 1 in European combined transport
Source: 2007 Annual Report; UIC; 1) Air/Ocean Freight form one business unit
Rail Freight Intermodal Land Transport Air Freight1) Contract
Logistics/SCMOcean
Freight1)
(DB 2008)(DB 2008)
21DB Schenker, August 2008
Strategic Focus
Brief Description of the Business Units
Trends in the Transportation and Logistics Market
2.
Transportation & Logistics within the DB Group
1.
4.
3.
22DB Schenker, August 2008
DB Schenker leads in European rail freight with
transport volumes of 99 billion ton-kilometers
With its own subsidiaries (in the Netherlands, Denmark, Switzerland, and Italy), shareholdings (Railion Scandinavia) and cooperation partners, DB Schenker’s rail freight unit is Europe‘s largest rail freight carrier
Single car transport services provide an open network system for the transport of complete individual wagonloads
Block train transport services provide large volume point-to-point flows of goods tailor-made to individual customer needs
Selected additional services (transshipment, plant shunting services, etc.) are also available
Customers are mainly from the iron and steel, chemical, consumer goods, automobile and construction materials industries
Rail Freight Business Unit
Rail Freight Transport
(1) Incl. Intermodal
Transport performance: 99 billion tkm(1)
International share: ~60%
Freight cars: approx. 100,000
Traction units: around 3,000
(DB 2008)(DB 2008)
23DB Schenker, August 2008
Intermodal is the market leader for European combined transport services
Intermodal Business Unit
Rail Freight Transport
Transport performance: 26 billion tkm
Maritime share: ~40%
Load units carriedLoad units carried: 3.1 million
Intermodal is the market leader in European combined transport and together with its partners provides a Europe-wide rail network for combined transport services
Services are provided for containers, swap bodies and semi-trailers
Intermodal’s markets are pre- and post-carriage services to and from seaports (combined maritime transport) and transport services between land-based origin and destination points (continental combined transport)
Intermodal’s range of services: rail transport services in Europe in combined transport, trans-shipment and terminal services, provision of equipment, depot services and load unit-related services.
The business unit holds shares in the leading European operators
(DB 2008)(DB 2008)
24DB Schenker, August 2008
DB Schenker is the market leader in land transport for European system-based services
DB Schenker is the market leader for Europe-wide groupage, part and full-load transport services
The Land Transport Business Unit operates the largest and densest land transport network in Europe
In addition to Europe-wide system-based transport services, the business unit also provides special services, such as removals or the transport of oversized loads
The Land Transport Business Unit stands out from others with innovative products and high quality
The Land Transport Business Unit can provide the entire range of logistics services from a single source in conjunction with the Air/Ocean Freight, Contract Logistics/SCM, Rail Freight and Intermodal business units
Land Transport Business Unit
Integrated Logistics
Consignments: 250,000 daily
Scheduled services: 32,000 daily
Locations: 720 in 40 countries
Vehicles/Units1): 41,000
¹) Trucks, swap bodies and trailers; incl. subcontractors
(DB 2008)(DB 2008)
25DB Schenker, August 2008
DB Schenker is one of the world’s largest providers of air and ocean freight services
The Air/Ocean Freight Business Unit is # 2 in global air freight and # 3 in global ocean freight, and the market leader on trans-Pacific routes
Its core business is the operation of self-controlled networks
Global networks connect economic regions around the world
The focus of the business is in the automotive, consumer goods and electronics fields
Services include logistics support for international projects, trade fairs and events of every kind
Together with the Land Transport, Contract Logistics/SCM, Rail Freight and Intermodal business units, Air/Ocean Freight can provide the entire range of DB Schenker‘s logistics services from a single source
Air/Ocean Freight Business Unit
Integrated Logistics
Air freight volume: 1.3 million t
Ocean freight volume: 1.4 million TEUs 1)
Own charter flights: 900 p.a.
Locations: 800 in more than 130 countries
¹) twenty-foot equivalent unit
(DB 2008)(DB 2008)
26DB Schenker, August 2008
Contract Logistics/SCM Business Unit
DB Schenker is one of the leading providers offering global integrated logistics solutions
Core business areas are contract logistics and value-added services
Focus industries are automotive, high tech and electronics and consumer goods
Leading position in the automotive industry in Europe
Solutions are aligned with customer’s supply chains and include Sourcing Logistics, Production Supply Logistics, Finished Goods Distribution, After Sales Logistics and Supply Chain Logistics
Together with the Land Transport, Air/Ocean Freight, Rail Freight and Intermodal business units, Contract Logistics/SCM can provide the entire range of DB Schenker‘s logistics services from a single source
Integrated Logistics
Warehousing space: 4 million m²
Locations: 500 in 58 countries
(DB 2008)(DB 2008)
27DB Schenker, August 2008
Strategic Focus
Brief Description of the Business Units
Trends in the Transportation and Logistics Market
2.
Transportation & Logistics within the DB Group
1.
4.
3.
28DB Schenker, August 2008
Integrated transportation networks put DB Schenker in a perfect position…
Intermodal
Land Transport
Transportation networks
Ocean Freight
Air Freight
Contract Logistics/SCM
Excellent freight forwarding and logistics services…
...with a strong railway backbone
Rail Freight
(DB 2008)(DB 2008)
29DB Schenker, August 2008
VAS1)VAS1)
Global account management team
Door-to-door, track and trace
Holistic management of supply chain
1) Value added services
…to offer integrated door-to-door solutions from a single source
(DB 2008)(DB 2008)
30DB Schenker, August 2008
DB Group is decisively expanding its rail freight network along the main European transport corridors
European railway backbone
Leading rail freight network in Germany and Europe
Foreign activities in our own name or in collaboration with national railway companies
Tight linkage with our freight forwarding networks in land, ocean and air transport sectors
Corridors
Market leader Company-owned railway
Cooperation with partners
National wagon distribution
1) Based on revenues and ton kilometers(DB 2008)(DB 2008)
31DB Schenker, August 2008
1) PKP – Polish RailwaysRZD – Russian Railways BC – Belarus Railways
DB activities
Railways connection to Russia Misc. Joint Ventures (JV) between DB,
PKP, RZD and BC1) for product optimization and container transports
1
Connection of transrussian corridors
Cooperation with MoR2) and RZD Partnerships with relevant regional
operators
National Intermodal Container Terminal Network
Build-up of DB railways competences in China
Project Cargo terminals India Cooperation process with Indian Railways
1
3
4
Russia/ CIS
China
1
3
4
2) MoR – Chinese Ministry of Railways
…and already today we are busy building an attractive rail connection to China
(DB 2008)(DB 2008)
32DB Schenker, August 2008
The Transportation and Logistics Division’s aim
is to leverage cross-business unit potential
Fully integrated sector solutions
Integrated services/products
Integrated sales for major customers
Further development of cross-business unit solutions for key sectors
Automotive Chemical/Pharmaceutical
Advance integrated services and position them on the market. Examples: Rail Logistics, seaport hinterland services and combined transport solutions, railports…
Key account management to develop cross-selling potential between rail freight and Integrated Logistics
1
2
3
Air/OceanFreight
Rail Freight
Inter-modal
Land Transport
ContractLogistics/
SCM
Rail Freight Transport Integrated Logistics
Electronics FMCG
Transportation and Logistics Division
(DB 2008)(DB 2008)
33DB Schenker, August 2008
Additional key focus is on linking up carriers in multimodal projects
Pre-carriage by air freight Warehousing in Hong
Kong Coordination of production
call-offs Distribution of component
supplier parts
Operation of a supplier-controlled warehouse /
pre-carriage by air freight
Organization of trimodal logistics chains from Germany to Finland by Railion
Continuous distribution of electrical steel sheet on industrial pallets
Organization of trimodal logistics chains
Management of complete transport chains for automotive customers from Europe to South Africa using Schenker Supply Net Solutions
Management of complete transportation chains from Europe to
South Africa
Bremerhaven
Bremerhaven – Port Elisabeth
Automotive Supplier Park (South Africa)
Europe
Pre-carriage (road/ rail)
Packing center
Ocean freight
Import/post-carriagePort Elisabeth -
Rosslyn
(DB 2008)(DB 2008)
34DB Schenker, August 2008
DB Schenker provides complex services for the automobile industry along the entire logistics chain
DB Schenker handles spare parts logistics from Europe to Singapore with final distribution to South-East Asia
DB Schenker links up traditional freight forwarding services (road, rail, ocean and air freight) with complex logistics services
By offering integrated solutions, DB Schenker is establishing long-term customer relations
AsiaEurope
A case in point: Automotive Industry
(DB 2008)(DB 2008)
35DB Schenker, August 2008
DB SCHENKERchem-solution – the sector-specific product for the chemical and petrochemical industry
Links the key chemical and petrochemical locations in Germany and, on an
international scale, the ports of Rotterdam and Antwerp
Cross-border tracking & tracing with proactive customer information
Quota booking and targeted car control and prioritization
Continuous, cross-border shipment monitoring
In the event of delays, proactive information on deviations and expected time of arrival
Punctuality and security are key factors when dealing with highly sensitive hazardous goods – achieved with targeted car control and prioritization
DB SCHENKERchem-solution is particularly suited to time-sensitive shipments with overnight services on selected routes
(DB 2008)(DB 2008)
36DB Schenker, August 2008
DB Schenker realizes integrated transport solutions for a car manufacturer (AlbatrosExpress)
A joint transport solution operated by DB Schenker, Transfracht and DB Intermodal has connected a car manufacturer’s warehouses in Germany with their assembly plant in Russia since 2007.
Pre- and post-carriage between locations in Germany and the maritime connection to Russia take place via rail.
Advantages of the innovative concept include a significant reduction in transit time and the concurrent increase in supply safety.
In addition to these main transport flows, TFG’s wide-area transport network in Germany, Austria and Switzerland can also integrate other sites into the logistics concept at short notice.
&Intermodal
AlbatrosExpress
(DB 2008)(DB 2008)
37DB Schenker, August 2008
Warehousing Planning and
coordination of procurement chain
Cross-docking Customs clearance
DB Schenker provides long-term logistics solutions for our customers’ complex supply chains
Distribution logistics
Warehousing Plant logistics Production supply
and disposal PackingC
ore
serv
ices
Warehousing Spare parts depots Return management
coordination Diagnostics of
returns
Warehousing and cross-docking
Planning and coordination of distribution chain
Distribution of goods to retailers or final customers
Packing Customs clearance
Sourcing Logistics
Supply Chain Management
Production Supply Logistics
Finished Goods
Distribution
(DB 2008)(DB 2008)
38DB Schenker, August 2008
A case in point: Bombardier-Rotax
Order entry
Source: DB Schenker
Delivery and scheduling of
shipmentsGoods inward
Labeling and storage
SAPSAP
Delivery to final customer
Packing of products
Storage of finished goods
Kanban-based supply of spare
parts
“Just-in-time” production
Quality control/ development of
balanced score cardsDB Schenker manages
all logistics activities from supplier to final
customer
(DB 2008)(DB 2008)
39DB Schenker, August 2008
Current highlights
DB SCHENKER- skybridge: Air freight between
Dubai and Toledo (USA) has doubled
Central Key Account Management for
major clients
Official provider of freight forwarding
and customs clearance services for
the 2008 Olympics
Successful test run on the Eurasian
Landbridge
EWS is expanding intermodal routes
through the Channel Tunnel
Operator Railion Scandinavia is
expanding single wagon transport
Participating in joint venture in China,
and construction of container terminals
(DB 2008)(DB 2008)
Berlin, August 2008
Deutsche Bahn
Ressort Transport und Logistik
The Transportation and Logistics Division of Deutsche Bahn