DB Schenker in Iran

14 February 2016

DB Schenker in Iran

Network Partner Development / RHO Middle East

Hans Michael Dietmar / Fabian Quendt

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Agenda

DB Schenker in Iran

1 Our Local Partner – Meshkin Co. Ltd.

2 Product Overview & Vertical Markets

3 Additional Services & Requirements

4 Current Sanction Situation

• 50 years experience in Iran

• Fully owned by the Daie family, managed by CEO BabakDaie

• DB Schenker’s exclusive partner since 2008

• 58 employees in 4 offices across Iran

• Strong in Ocean Freight: 28,000 TEU handled in 2014

• Iran’s largest air forwarder in pre-sanction era with more than 2,000 tons handled in 2010

• Rail services to Europe and Central Asia

• Land Transportation (FTL & LTL, on-forwarding)

• Customs Bond License

• Modern Quality Certificates in place (QM, HSE)

Our Local Partner – Meshkin Co. Ltd.

DB Schenker in Iran

General Information

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Bazargan Tabriz

Tehran

Bandar-e-Abbas

Facts & Figures (2014)

Exports - commodities:

petroleum 80%, chemical and petrochemicalproducts, fruits and nuts, carpets, cement, ore

Imports - commodities:

industrial supplies, capital goods, foodstuffsand other consumer goods, technical services

Import PartnersUAE 30.6%, China 25.5%, Algeria 8.3%, India4.6%, South Korea 4.4%, Turkey 4.1%

GPD

per capita (PPP) $17,100 (96)

Growth rate 3%

by sector of origin

agriculture 9,10%

industry 40,60%

service 50,30%

Corruptionperception

Index

136 (out of 175)

Proved Oil Reserves

150 billionbarrels

Global ranking4th

(10%)

Inflation rate 23%

LogisticsPerformance

Index

114(out of 166)

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� Iran plans to sell 300k barrels of crude oil a day to European customers now that Western sanctions have been lifted

� Iran is trying to boost its oil exports by 500k to 600k barrels a day in the next few months, with much of the rest going to Asia

� Iran has an estimated $120 billion in assets and around half of these would be unfrozen under the upcoming sanctions relief.

� Consolidation services (dedicated and permanent representative at IKA airport)� Charter Services� Connected to DBSL Carrier Portfolio

1 Air Freight

� Forwarding, NVOCC, FCL (portfolio of carriers and business rules)� LCL � CIS Corridor (Bandar Abbas to Kazakhstan, Uzbekistan)� Connected to DBSL Preferred Carrier Portfolio

2 Ocean Freight

� Licensed carrier � FTL &LTL (Central Europe to Teheran)� Air and ocean on-forwarding services� CIS Corridor from Bandar Abbas

3 Land Transportation

4 Global Projects / Oil & Gas

5 Rail

� DB Schenker already has developed significant experience in the region

� Services to/from Europe and Central Asia� Block trains� Transit Cargo through Bandar Abbas to Sarakhs (Border to Turkmenistan)

Full Range of Products available

DB Schenker in Iran

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Transit time of 14 days from Germany to Tehran

Truck positioned at Customer premises or DBSL Hub

Export Customs Clearance

Transit via Turkey

Clearance by Broker

In bond transit in Iran up to bonded warehouse Tehran

Customer self-pick up at bonded warehouse

Pick UpTransit up to EU Border

Turkey Transit

ArrivalTehran

Customs Delivery

0 1275 13 x

One day free loading

One day free storage for customs

Two days border waiting

DB Schenker in Iran

� Technology provider for Oil & Gas Industry.

� Investment projects to renovate and expand ports & infrastructure

� Gas-pipeline between EU and Iran Industrial & Chemicals

Aerospace

Electronics

Automotive

� Huge potential for the aerospace industry due to Iran’s outdated fleet of commercial aircraft: Iran is in the process of purchasing 114 jets from Airbus. In the long run, Iran requires 400 long haul and 100 short haul jets for its civil aircraft fleet.

� Renovation and modernization of airports are expected to amount to € 230 million. Currently, only 9 out of 67 airpots are operating.

� Young generation that is eager to experience new technology

� Upgrade of mobile communication infrastructure needed

� Prime German and French manufacturers are planning to start production in Iran.

� 147 cars per 1,000 people (Germany: 550)

Vertical Markets – Current Situation & Outlook 1/2

DB Schenker in Iran

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� Traditionally good reputation of German consumer goods

� Existing foreign owned production units, such as Nestle Iran, are already operating in the countryConsumer

Retail

Healthcare

Semicon/Solar

� Traditionally good reputation of German products

� Particular interest for luxury goods

� Trading houses based in GCC countries are eyeing to replicate their franchise models with local partners in Iran

� Iran sees great potential as a health & medical destination for foreign patients

� High level of health awareness among the population

� Great interest for sophisticated HC products

� Energy Technology

� Dynamic development expected in all areas of renewable energies.

Vertical Markets – Current Situation & Outlook2/2

DB Schenker in Iran

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Services & Requirements

DB Schenker in Iran

� Since 1950‘s in transportation to/from Iran and Central Asia.

� Cooperation with all other modes of transport offered by DB Schenker.

� Consultancy on transport optimization and selection of mode of transport.

� Wide selection of experienced and trusted freight carriers.

� Support with customs procedures.

� Additional services such as crane loading and unloading.

� Preparation of bank credit documents.

� Transportation of Dangerous Goods

� Heavy lift transports.

What we offer

� Original commercial invoice (engl., HTS per line item, fivefold stamped with no corrections).

� Export declaration

� Export license

� Declaration regarding Article 36 Council Regulation EU No. 267/2012

� Contact details of actual consignee (no trading firms)

� Information regarding customs terminal of consignee

� Credit terms

� IMO-declaration for ADR transports for countries that require transport by ferry.

� Declaration per customs tariff number, incl. gross weight, net weight and value of goods.

� Detailed information of goods to develop optimized load plans.

� Certificate of origin

� Import license

� DB Schenker Iran Checklist (Documet IR1)

� DB Shenker Iran Transaction Contract Clause

Requirements from Supplier / Exporter

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Iran Sanction Situation

DB Schenker in Iran

� The EU lifted all its economic and financial sanctions taken in connection with the Iranian nuclear program. As a consequence of the lifting of these sanctions, the following activities, including associated services, are allowed as of Implementation Day:

� Financial, banking, and insurance measures.

� Oil, gas and petrochemical sectors

� Shipping, shipbuilding and transport sectors

� Gold, other precious metals, banknotes and coinage, metals

� Software

� Sanctions related to the arms embargo, missile technology, restrictions on certain nuclear-related transfers and activities, provisions concerning certain metals and software remain in force after Implementation Day.

European Union

Implementation Day (January 16, 2016) has marked the start of a new era in Iran. Most sanctions that were imposed on the Iraniangovernment, companies, and individuals have been lifted with immediate effect. However, the situation at the moment differs between the three major sanction imposing organizations (see Appendix for more details):

� Most UN sanctions against Iran have been lifted.

� The UN restrictions on arms supplies to Iran remain in place.

United Nations

� Sanctions against non-US persons have been lifted.

� Foreign entities under US control (e.g. European subsidiaries of US companies) have received sanction relief (General License H).

� For US persons the sanction situation remains almost unchanged with relief only offered for specific industries, such as civil aviation.

� Approval from US authorities is required for most activities, incl. shipping of goods that are made in USA, transit via US territory, contain more than minimal amount of US components or are paid in US dollars.

� It is vital to follow US law

United States of America

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danke | merci | thank you | gracias | س��� ��| Спасибо | obrigada | را�� | 谢谢

Appendix / Sources

� Sanctions of the European Union against Iran (partly in German):

� http://ec.europa.eu/trade/policy/countries-and-regions/countries/iran/

� http://www.zoll.de/DE/Fachthemen/Aussenwirtschaft-

Bargeldverkehr/Embargomassnahmen/Laenderembargos/Iran/iran_node.html

� http://www.ausfuhrkontrolle.info/ausfuhrkontrolle/de/embargos/iran/index.html

� https://www.bundesbank.de/Redaktion/DE/Standardartikel/Service/Finanzsanktionen/Laender/iran.html

� http://eeas.europa.eu/top_stories/pdf/iran_implementation/information_note_eu_sanctions_jcpoa_en.pdf

� Sanctions of the United States of America against Iran:

� http://www.state.gov/e/eb/tfs/spi/iran/index.htm

� http://www.treasury.gov/resource-center/sanctions/Programs/pages/iran.aspx

� https://www.treasury.gov/resource-center/sanctions/Programs/Documents/implement_guide_jcpoa.pdf

� Additional Sources on Iran (in German):

� http://iran.ahk.de/

�http://www.auswaertiges-amt.de/DE/Aussenpolitik/Laender/Laenderinfos/01-Laender/Iran.html

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