December 2014

EUROPEAN TRANSPORT CORRIDORS

Sofia

Pazardjik

Plovdiv Dimitrovgrad

Mezdra

Cherven Bryag

Pleven

Levski

Pavlikeni G. Oryahovitsa

Popovo

Targovishte

Shumen Varna

Dobrich

Karlovo

Kazanlak Dabovo

Sliven

KarnobatBurgas

Ruse

V. Tarnovo

St. ZagoraN. Zagora

Yambol

Pernik

Radomir

Dupnitsa

Blagoevgrad

Kyustendil

Vratsa

BoychinovtsiBrusartsi

Montana

Lom

Vidin

Kulata

Svilengrad

Kardam

Kalotina

TRANSPORT CORRIDORS ON THE TERRITORY OF BULGARIA

Pan-European corridor IV (Germany-Czechia-Austria-Hungary-Romania- Bulgaria-Greece/Turkey), coinciding in its European section with OSJD corridor No 6, continuing along the TRACECA corridor – a link of Western and Southeastern Europe with the Near East and Central Asia, after building a bridge over the Danube (Vidin-Calafat) and a tunnel under the Bosporus;

Pan-European corridor VIII (Italy- Albania- Macedonia- Bulgaria (Burgas / Varna) – linking the Adriatic Sea with the Black Sea zone, Russia and the countries of Central Asia on the TRACECA corridor (Europe-Caucasus Asia);

Pan-European corridor VII – the river Danube; Pan-European corridor IX (Finland- Russia- Ukraine- Romania- Bulgaria-

Greece) – in its section in Romania and Bulgaria it coincides with OSJD corridor No 12, these corridors ensuring the link between the countries of Northern and Eastern Europe with the Balkans and the Near East;

Pan-European corridor X (Austria/Hungary-Slovenia-Croatia-Serbia / Macedonia-Bulgaria-Turkey / Greece) – connecting the countries of Central and Eastern Europe with the Near East;

GEOSTRATEGIC ADVANTAGES OF BULGARIAN RAILWAY TRANSPORT

Crossroad position of the country enabling the development of transit transport on the lines of the Pan-European transport corridors;

Link with five European transport corridors: IV, VII, VIII, IX and X;

Link with the OSJD corridors: No 6 (Czechia, Hungary, Romania, Bulgaria, Turkey, Iran, Turkmenistan), No 12 (Moldova, Romania, Bulgaria);

Link with the TRACECA transport corridor (Europe- Caucasus- Asia): through Burgas Port, Varna Port, Varna Ferry);

A railway link with the Black Sea ports of Varna and Burgas and the Danube ports Lom, Ruse, Svishtov, Silistra and Vidin;

Board of Directors

Holding BDZ EAD

BDZ Passengers EOOD BDZ Cargo EOOD

BDZ CARGO

BDZ Cargo is the main railway freight operator in Bulgaria

The company occupies 65.4 % of the railway freight traffic market;

Freight traffic: 2009 г. – 10 633 000 ton, 2010 - 10 778 000 t, 2011 - 11 607 000 t, 2012 - 9 770 000 t; 2013 – 8 661 000 ton

Length of the railway lines - 4 070 km

Personnel – 3 712

Main ServicesDomestic and international railway transport services

Combined transport services

Customs clearance, financial guarantees, security and insurance for goods

Routing

Warehousing

Tracking and tracing of wagons and containers

Container terminals and logistic services

Rental of locomotives

Other shipping services

Structure of the locomotive fleet

diesel

25%

electric shunting

3%

electric

41%

diesel shunting

31%

Locomotives by typeLocomotives by type SeriesSeries TotalTotal

DieselDiesel 0606 3030

DieselDiesel 0707 2222

ElectricElectric 4040 5858

ElectricElectric 4646 2525

Diesel shuntingDiesel shunting 5151 66

Diesel shuntingDiesel shunting 5252 2020

Diesel shuntingDiesel shunting 5555 3939

Electric shuntingElectric shunting 6161 77

TotalTotal 207207

FREIGHT WAGONS

Wagon typeTotal

number

11 Covered 4-axle 307

22 Flat 929

33 Open 1 852

44 Grain carriers 606

55 Ore carriers 248

66 Saddle 373

77 Hopper 21

88 Tank 381

99 Refrigerators 50

1010 Cement carriers 123

1111 For out of gauge loads 1

TRANSPORT SERVICES RENDERED BY BDZ CARGO

Transport of goods in block-trains;Transport of goods in route trains on routes, timetables and prices

coordinated with the other RUs; Transport on specially agreed transport schemes;Transport of heavy-load, out-of-gauge and special consignments;Carrying out combined transport;Transport of goods in isolated wagons;Transport of goods from/to the Black Sea ports Varna and Burgas, also

in large-capacity containers, processed in the terminals of these ports;Transport of goods from/to the Danube ports Ruse, Lom, Svishtov,

Vidin;Transport by ferry from/to Varna, Caucasus (Russia), Ilichevsk (Ukraine),

Poti / Batumi (Georgia), continuing the transport by rail from/to the countries of CIS, Central and Middle Asia.

Freight Traffic total by Commodities

Code Classification of goods 2007 2008 2009 2010 2011 2012 2013

0 Agricultural products and livestock 200 418 238 158 458 248 3841 Foodstuffs and fodder 433 459 374 314 301 334 2852 Solid mineral fuels 5 030 4 458 3 454 3 382 3 638 3 259 3 3833 Petroleum products 1 754 2 201 1 923 2 020 1 630 1 106 9674 Ores and waste products for metallurgy 3 738 2 133 1 050 1 332 1 425 1 099 7675 Ferrous/Non-ferrous metallurgical products 2 730 2 030 857 765 960 577 4666 Raw or manufactured minerals and construction materials 3 272 3 116 1 130 886 1 085 1 247 9487 Fertilisers 379 372 72 202 275 257 1538 Chemical products 906 731 421 385 438 346 331

9Machines, vechicles, manufactured products and spesial transaktions 1 733 1 672 1 114 1 334 1 397 1 297 1 178Total 20 175 17 590 10 633 10 778 11 607 9 769 8 861

Agricultural products and livestock

4% Foodstuffs and fodder3%

Solid mineral fuels38%

Petroleum products11%

Ores and waste products for metallurgy

9%

Ferrous/Non-ferrous metallurgical products

5%

Raw or manufactured minerals and construction

materials11%

Fertilisers2%

Chemical products4%

Machines, vechicles, manufactured products and

spesial transaktions13%

Train movements from the Freight TrafficTrain kilometers total (thous.)

2007 2008 2009 2010 2011 2012 2013Electric traction 9 355 8 545 5 583 5 662 6 090 4 756 3 756Diesel traction 2 361 2 219 1 270 1 117 1 143 1 177 807Общо 11 716 10 764 6 852 6 779 7 233 5 933 4 563

0

2 000

4 000

6 000

8 000

10 000

12 000

2007 2008 2009 2010 2011 2012 2013

9 355 8 545

5 583 5 662 6 0904 756

3 756

2 3612 219

1 2701 117

1 143

1 177

807

Train movements from the freight traffic (thouss. train kilometers) according to tractions mode

Diesel traction

Electric traction

in thousands 2007 2008 2009 2010 2011 2012 2013 2014

Financial Indicators  

Sales 146 417 236 914 136 838 153 700 186 121 150 709 137 429 131 864

Operating expenses  154 039 250 928 161 936 166 435 194 908 155 812 125 545 125 916

EBITDA -7 622 -14 014 -25 098 -12 735 -8 787 -5 103 11 884 5 948

Other revenues 22 27 28 25 51 24 157 154

Amortization 632 755 830 682 12 660 20 841 22 209 22 461

EBIT -8 232 -14 742 -25 900 -13 392 -21 396 -25 920 -10 168 -16 359

Sales of Assets 116 1 381 179 35 82 10 436 13 984 4 507

Net Profit -8 198 -13 159 -25 621 -13 364 -20 573 -14 782 3 816 -14 693

Cash flow (net profit + amortization) -7 566 -12 404 -24 791 -12 682 -7 913 6 059 26 025 7 768

Equity 15 053 29 700 4 079 -9 755 96 339 81 433 79 308 60 545

Net Assets 15 053 29 700 4 079 -9 755 96 339 81 432 81 946 78 293

Assets 78 388 87 067 68 034 90 158 215 898 214 499 195 722 175 586

Indebtedness of BDZ Cargo 62 918 56 965 66 630 101 635 118 345 131 939 113 129 113 096

Volume indicators                

Staff - headcount 5 451 5 049 4 088 3 243 4 435 3 542 3 795 3 712

Productivity per employee  833 760 494 674 598 504 473 472

Tonnes transported (in millions) 20 175 17 590 10 633 10 778 11 607 9 770 8 869 8 748

Net-Tone- Kilometer (in millions) 4 711 4 031 2 277 2 352 2 497 2 043 1 806 1 776

Financial indicators

THANK YOU FOR YOUR ATTENTION!