1. Developing cultural change. Together. The cultural development process at Deutsche Bahn Corporate Culture Office July 2015 DB AG HZ

2. Cultural Change at DB What is Company Culture? 1

3. Culture is the amount of a society‘s unwritten rules, which apply as the „right“ kind of thinking, feeling and acting 2

4. Company Culture roots in deep assumptions and mints the employees‘ behaviour among each other as well as structures and processes Behaviours, structures and processes Values and Norms Ground Assumptions Observable Not observable Company Culture 3

5. Company Culture appears in a lot of aspects of daily work and mints the companies‘ perception from the outside Werte und Normen, Grundannahmen ungeschriebene Regel Observeable Not observableassumptions, norms, values and unwritten laws Company Culture Leadership Communication Premises Processes and Structures Collaboration Handling change … Personal proactiveness & responsibility/ Rules and standards Social- partnership Performance & Innovation Employer Attractiveness Customer Orientation Employee Engagement 4

6. Company Culture is the critical factor for longlasting company success Structure Strategy Culture „I define culture as the sum total of everything an organization has learned in its history in dealing with the external problems, which would be goals, strategy, how we do things, and how it organizes itself internally.“ Edgar Schein „Culture eats strategy for breakfast.“ Peter Drucker 5

7. Cultural change at DB What is Company Culture? 6

8. Cultural change is a critical component of our DB2020 strategy: We want to do more to improve employee satisfaction Customer and quality Profitable growth Strategic directions Vision Sustainability dimension Profitable market leader Economic Top employer Social Eco pioneer Environmental No. To become the world’s leading mobility and logistics company Sustainable business success and social acceptance 1 2 34 No. Cultural change/ employee satisfaction Resource preservation/ emissions and noise reduction

9. Corporate culture is the key to success – only satisfied employees can promote customers satisfaction “Culture affects everything that is important: the satisfaction of our employees, our public image, our attractiveness as an employer, the loyalty of our customers and our employees, our productivity, performance, innovation and our role as entrepreneur.” Ulrich Weber, Member of the Management Board for Human Resources

10. Our cultural change is based on open dialogue - questioning, listening and participating to build a shared cultural vision

11. We held five Conferences on the Future, brought the dialogues to the regions and are intensifying our efforts on a local level Five Conferences on the Future, one for each of the following groups: 4 management levels (KFK/OFK1, OFK2/3, LFK, BFK) and staff members 14 Regional Dialogues on the Future and one International Dialogue on the Future in Barcelona Two events, each with up to 300 executives and staff members in attendance, were held in each region Three Dialogues on the Future on a regional level outside of Germany Staff members and executives from all business units in one country/region Dialogue at a local level Executives with their teams/units

12. We combine our efforts to reach our common goals In January 2012 we held the first International Dialogue on the Future in Barcelona to bring the dialogue to Europe At DB, we all share the same vision “Is the board considering measurements to encourage better collaboration between business units?” “Are there any plans to do the Dialogue on the Future on a national level, like the conferences in Germany?” “Will there be further plans to share information within countries to understand DB vision and strategy?” “How do we communicate the DB vision effectively after this meeting?” „To know each other can finish the fear to share clients and info.” “Together we can get there! – The question is what exactly is “there”?” “In conclusion: We find this conference very positive.” Two issues were particularly important: collaboration across DB’s business units and a common vision

13. Leadership Cooperation Cooperation in the spirit of partnership, including across business units/ integrity, respect and appreciation in our day-to-day interactions Improving the quality of leadership/ approachability and openness of executives/stronger inclusion of staff members Developing a culture of dialogue and feedback marked by openness, a spirit of trust and constructive criticism/ encouraging transparent and direct communication Encouraging an entrepreneurial spirit/ more flexibility in decision-making at the local level/giving others room to make decisions/having the courage to decide Personal responsibility Communication The results of the cultural analysis and the feedback we received at the Conferences provide us with a clear vision for our change: People in focus! We want an agile Organization, with self-confident employees, who feel valued for their activities, act loyal towards the company and work with enthusiasm for Deutsche Bahn and our customers.

14. 2. Evaluation and Communication communication of results, Follow-up workshops STRATEGY DB2020 ECONOMICSSOCIAL AFFAIRSECOLOGY 4. Qualification: Qualificationand Inspiration of leaders, employees and multiplicators 3. Dialogue and Mobilisation: Conferences on the Future, Dialogues on the Future, Culture Dialogue Picture, Workshops on the Future 1. Analysis Cultural analysis, Employee Satisfaction Survey 5. Changing: Implementation of activities, that have been idnetidfied by the employee satisfaction survey and ist follow-up workshops 6. Retaining and Exchange: Storytelling, Best Practice, exchange, rewarding, e.g. DB Award and networks Cultural Change at DB Biennial Rhythm through Employee Satisfaction Survey Adjustment / Reflection of Focus topics Open Close Our understanding of cultural development: continious integration, questioning and working on changes Büro Unternehmenskultur (HZ (2)) 13

15. Corporate level Division level Board of Management Corporate Culture Office Holding functions (Strategy, HR development…) Division Boards Change Agents / Projectleaders HR-development/ Communicators Regional Level Regional representatives Pace setters Regional HR-network Local level Active Managers Active Employees To implement changes on site, the cultural change needs to happen on different levels – everyone can contribute 14

16. The Dialogue continues with three Dialogues on a regional level outside of Germany (Wroslaw, Amsterdam, Manchester) Deutsche Bahn AG, Ulrich Weber, 4 September 2014  1st Int. Dialogue on the Future, Barcelona 17-18 January 2012 with 300 participants from all of Europe (host: DB)  3rd Int. Dialogue on the Future, Amsterdam 13-14 November 2013 with 300 participants from Netherlands and Belgium (host: DB Schenker Logistics)  4th Int. Dialogue on the Future, Manchester 25-26 November 2014 with 300 participants from UK (host: DB Arriva) Objectives of international dialogues on the future: Continuing direct dialogue between business units and with participants outside of Germany Developing understanding of each others, understanding DB's vision and strategy, understanding the cultural change process Strengthening the sense of belonging and togetherness within DB and promoting better cooperation between the business units active within a region/country  2nd Int. Dialogue on the Future, Wrocław 14-15 February 2013 with 300 participants from Poland (host: DB Schenker Rail) 15

17. The Dialogue on the DB Future in Poland was a successful kick-off to strengthen collaboration between business units outside of Germany Dialogue on the DB Future in Poland 14./15. February 2013, Wroclaw Two days with evening event Organized by DB Schenker Rail Polska Hosted by the CEO of the business units in Poland (DB Schenker Logistic, DB Schenker Rail, DB Arriva) 300 participants – executives and non- executives –representing all business units in Poland Members of the Management Board of DB Group and of the businuess units as guests Information and intensive discussions about DB’s strategy, DB’s culture and cooperation within DB Workshop “Knitting the DB Net” as a strong symbol for cooperation  Wrocław

18. Please take the initiative. Thank you very much! The Corporate Culture Office is glad to help. Contact us at: unternehmenskultur@deutschebahn.com