03. Januar 2005 2

First Step Railway Reform (1)

Special fundDeutsche Bundesbahn

Special fundDeutsche Reichsbahn

Special fundFederal Railway Property

31 December 1993 01 January 1994

03. Januar 2005 3

First Step Railway Reform (2)

DB AG

EBA

05 January 1994

Federal Railway Property- Administration area

- Business area

-Sovereign area

BEV

03. Januar 2005 4

Special Fund BEV

• Part of the federal property (identity), but separate from other property

• Therefore part of the property without capacity for rights

• Acts outwardly in legal relations (as Federal Government) under its own name (BEV)

• Can sue and be sued

03. Januar 2005 5

Sovereignty of BEV

• Outward sovereignty means:– Legal capacity,

active and passive legitimation– Organizational independence– Separate budget– Not the traditional position of an authority

(not directly subordinate to the Federal Ministry of Transport, Building and Housing)

03. Januar 2005 6

Sovereignty of BEV

• Outward sovereignty guarantees:– Conflict mediation agency for sometimes contrary

objectives and political interests • of the Federal Government (owner of DB AG, employer

of the civil servants, federal budget, transport policy)• of DB AG (business decisions with personnel effects on

civil servants)

– Cost transparency railway reform

03. Januar 2005 7

Tasks of BEV

• Personnel management for– Civil servants in the DB Group

(assigned and granted leave of absence) – Civil servants with third parties (granted leave of

absence) – Transfer of services to third parties– Recipients of state benefits– Own personnel

• Continuation social services• Administration and utilization of real property

03. Januar 2005 8

BEV – Provider of personnel services

116.000

58.00050.000

0

20.000

40.000

60.000

80.000

100.000

120.000

1994 2003(01.10.)

(forecast)

Civil servants inthe DB Group(rounded number)

Development: Civil servants in the DB Group

03. Januar 2005 9

BEV – Provider of personnel services

0,90%

8,60%

13,10%

21,20%

26,40%

21,10%

6,70%

2,00%

0%

5%

10%

15%

20%

25%

30%

25-30 31-35 36-40 41-45 46-50 51-55 56-60 61-65

Civil servants inthe DB Group(age groups on1 October 2003)

Age pyramid: Civil servants in the DB Group

03. Januar 2005 10

Real Estate CompanyVivico Real Estate GmbH

• BEV – 94,99 %

• 218 valuable objects in exposed locations

• Own responsibility for added value

• Privatisation in 2 phases– Examination– Transaction

03. Januar 2005 11

Commercialisation of the BEV Real Estate

• Legal remit of BEV(property required / not required by the railways)

• Agreed and final breakdown• Real estate stock of BEV

(Residential, sports, leisure time areas, commercial objects)

• Commercialisation of the objects expected by 2011

03. Januar 2005 12

„As-if“ Reimbursement

• Paid by DB AG (for the entire Group)

- Reimbursement of personnel costs for assigned civil servants

- Contributions for subsequent pensions for civil servants on leave

- Share of personnel administration costs

03. Januar 2005 13

„As-if“ Reimbursement

• The basic principle of the reimbursement of personnel costs is the „as-if“ principle

03. Januar 2005 14

Outlook

• BEV today: – Partner of the DB Group– Partner of other investors and owner, e.g.

• Vodafone (Arcor AG & Co.)• Utility Company Konstanz (Bodensee Shipping)

• BEV in future:– One-stop product „railway reform“ – Partner also for new structures and ownership

situations

03. Januar 2005 15

Capital flows

Federal Government

Investment Track

DB AG

Investment Track

Federal Government

Subsidy BEV

BEV

Pensioners

Civil Servants at

DB AG

DB AGfor Civil Servants

Other

Other