Agenda Development of long distance Coach market in case of Germany APC- 10 year‘s anniversary meeting, Riga, 05. Septemer 2013

Situation Change of regulations in the beginning of year 2013 Up to then, utmost protection of competition for railway by laws Only from and to Berlin significant services by coach Market share approx. 0.1 % of the total transport market 3 companies operated a network within Germany, some SME‘s operated airport transfers Since January, very dynamic development

Situation The liberalization of the German long-distance coach services attracts a number of new stakeholders and companies Active Interested Market – including single lines operated by over 50 different coach suppliers There are various international companies, prepare the market entry or already have implemented After hesitation, the Deutsche Bahn AG as the current market leader interested at a further expansion in the Coach market

Situation In a short time have formed highly competitive lines Coach network – March 2013 Operators

Situation Against the background of liberalization, the line network in the long-distance coach traffic has greatly increased (2012: 40 routes, 08/2013: 160 routes), and will expand further Structure National lines Planned opening international lines Planned opening lines from 04/2013 Numbers of lines 03/2013 No Exact number 1) In cooperation with existing operators

Forecast The forecasts for the market share of long-distance bus in Germany vary widely, a turnover of up to € 1 billion per annum possible FORECASTING MARKET SHARE long-distance bus (BASE PKM) Coach Plane Rail Car Turnover Coach: In addition to the fluctuating forecasted modal split shares is the question of absolute market size

Forecast OFFER, PRODUCT & PRICE SALES & CUSTOMER SERVICE PRODUCTION / OPERATIONS Coach TERMINALS For Germany can be expected from a rapidly growing coach market, but also has the need for development. Challanges for market development

Forecast The growing distance coach traffic represents many challenges to market participants - but it also offers opportunities (1) NETWORK PLANNING, MANAGEMENT AND PRODUCT PRICING Opportunities Many large cities directly connected by highways High Price level & capacity constraints at DB long-distance traffic cooperation between operators - with common brand - with franchise models cooperation rates, for example with airlines or transport associations perfected yield management method Challanges “tracking" attractive routes with connections other cities differentiation from other coach operators product positioning (low cost?, Standard? Premium?) Optimal price level? price reactions DB long-distance + DB Regio entry of new competitors train

Forecast The growing distance coach traffic represents many challenges to market participants - but it also offers opportunities (2) SALES & CUSTOMER SERVICE Opportunities High acceptance of Internet sales Special search and booking platform booking and yield management tools available on the market sales cooperation, for example between coach operators, with Retail and with local public transport providers (including CityTicket connection) Mobile sales and additional services Challanges sales competition between coach operators (and also to Sales service) Customer Information conflict Customer vs. Low-cost structure on-site customer support in case of failure passenger rights

Forecast The growing distance coach traffic represents many challenges to market participants - but it also offers opportunities (3) PRODUCTION / OPERATIONS Opportunities New Business Models for Service Providers Central Coordinators as an interface between different operators and CCT handling agents Full range of coach companies Nationwide manufacturer workshop network collaborations with public transport providers, for example for workshop use or on-site operating personnel Challanges Connections <> overall stability (high susceptibility to interference in cities and highway) "major combat days" (start of the holidays, before Christmas, etc.) decentrally parking of vehicles Accommodation staff personnel scheduling: optimum between buffer and efficiency? infrastructure availability and quality (see also next page)

Forecast The growing distance coach traffic represents many challenges to market participants - but it also offers opportunities (4) Terminals Opportunities State of the art terminals, when municipalities implement new PPPs or exclusively private investment: CCT as "shopping and service center with coaches “ Coach connection can promote accessibility and tourism Cooperation between providers and local authorities (e.g. Marketing support) Challanges Few real coach terminals are available in Germany Financial needs of municipalities / responsibility open Optimal location and affordable access for coach connection Customer information (especially at unstaffed bus stations/terminals) overload risk: Concentration of departures at certain times and days of the week Limited Knowledge about conditions and needs for infrastructure in long-distance coach transport

Summary The long-distance coach has shown in a short time many innovative approaches, yet still tackle some challenges. OFFER, PRODUCT & PRICE SALES & CUSTOMER SERVICE PRODUCTION / OPERATIONS Coach TERMINALS Active and flexible product management Yield Management Development of forms of distribution Target group oriented marketing Reliability even at peak times Efficient (remote) control of the operation Creation and funding of the necessary infrastructure Marketing coaches towards cities Link with other transport modes Common marketing coach and city

Summary We expected in the medium time a significant growth. After that, it will give a phase of consolidation at the supplier, but also an adjustment of the value concepts POTENTIAL MARKET STRUCTURE Supply / network planning Productmanagement & Pricing Sales & Costumer services Production & operation Vihicles Terminals / CCT / virtual stations Main operators Medium to long term: 4-6 companies Specialists

Contact 14 Stefan Christian – President Rüdigerstr Berlin - Germany Tel. +49 (0)