Operating.Passenger Division.

Contents.

Welcome to SBB Passenger Division Operating. 5

We make tracks. 7

Quality for you. 8

Operating. 9Your partner of choice. 9

Our expertise. 11Asset management. 11Fleet procurement and strategic purchasing. 13Train preparation. 14Locomotive driver management. 17Materials logistics. 18Rolling stock industry. 21

Support areas. 22Services from Operating for Operating. 22

Our customers. 26

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“Kaizen is a key element of our strategy” Thomas Brandt, Head of Operating.

Welcome to SBB Passenger Division Operating.

SBB keeps Switzerland moving. More people use the train in Switzerland than in any other country in the world. Every day over a million passengers are “at home on the move” with SBB.

We make sure you reach your destination safely, punctually and comfortably.

SBB Passenger Division Operating makes tracks: around 7,000 staff across Switzerland ensure that vehicles are procured on time and scheduled, operated, cleaned and maintained in a professional manner. We always put the needs of our customers first.

Our products are successful in the market. They are known for outstanding quality. Get to know our organisation and our core competencies. Take advantage of our experience and expertise: you can count on us.

Thomas BrandtHead of Operating

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Modern trains – safe, reliable, punctual and clean – operating throughout Switzerland: that’s the core business of SBB Passenger Division Operating. With around 7,000 staff, SBB’s largest business area offers customers a first-class service with Swiss Rail expertise and innovation.

Our promise.Our mission includes the SBB promise:“We keep Switzerland moving.” We derive our vision from this promise: “We make tracks and are continually striving to achieve excellence.”

Our mandate.• Asthe“factoryfloor”ofSBB’sPassengerDivision,OperatingisresponsibleforensuringthatrailoperationsinSwitzerlandrunsmoothlyandaresafe,reliable,punctual,clean,simpleandfriendly.

•WeareSBB’scompetitiveproviderofheavymaintenanceservices.•Ourworkmakesasignificantcontributiontothecompetitivenessofregionalandlong-distanceservices:bymanagingtherailway’sassetsandprovidingcompetitive,customer-focusedservicesintrainpreparation,trainmanagement,componentandvehiclemaintenance,modernisationandprocurement.

•Wehandlesuppliermanagement,procurementandsupplychainmanagementfortheSBBPassengerDivision.

•Weactivelymarketselectedproductstothirdparties.

Our values.Five common values help us to achieve this challenging objective. We are:•Ambitious•Responsible• Flexible• Passionate•Respectful

We make tracks.

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Quality for you.

Our certifications.We stand for outstanding quality in production. Our management system supports staff with systematised processes. SBB Passenger Division Operating has the following certifications:• ISO9001:2008–certificationofthequalitymanagementsystem• ISO14001:2004–certificationofenvironmentalmanagement•OHSAS18001:2007–certificationoftheoccupationalhealthandsafetymanagementsystem

• ISO31000:2009,ONR49001:2008–certificationoftheriskmanagementsystem• ISO3834-2:2005,EN15085-2:2008-01–weldingqualityassurancecertificationfortheOlten,Yverdon-les-Bains,BellinzonaandBiel/BiennedepotsandtheZurichAltstettenrepaircentre

• VPIandECMcertificationoftheBellinzonadepot• SwissTourismSealofQuality,LevelIII

Prizes and awards.•PrixESPRIXforourbasicconcept:“Managingwithvision,inspirationandintegrity”,March2014

•NominatedfortheAscoAward2013withGerhardLeuConsultingAG,June2013•SilvermedalontheKPIcomparison(materialsavailability,stockturnover,OTIFfigures)oftheEuropeanrailwaysaffiliatedtotheIRT(InternationalRoundTable),October2012

•Drivervideo“ImmeranderSpitze”,withOlivierRenaudandLeaSteppacher:goldmedalinthebasic,advancedandvocationaltrainingcategory,InternationaleWirtschaftsfilmtageinVienna,May2012

•RecognisedforExcellence5star,April2012

Regular certification audits.Regular certification audits are carried out by internal and external units:• ourownDepartmentforRisk,Safety,QualityandEnvironment(RSQ)• theSwissAssociationforQualityandManagementSystems(SQS)• theSwissFederalOfficeforTransport(FOT)• theSwissNationalAccidentInsuranceFund(SUVA)

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Our expertise – your advantage.• Yourpartnerwithspecialistrailwayexpertise.Weapplyourhigh-qualityexpertiseforthebenefitofyourbusiness.

• Yoursingle-sourcepartnerforeveryneed.Asanexpertgeneralcontractor,wetakeallfunctionsinareassuchasvehicleprocurement,cleaningandspare-partpoolingoffyourshoulders.

• Yourpartnerwithexpertisecoveringawiderangeofvehicletypes.Wecancombineequip-mentandmaintenanceservicesforyou–oneverythingfromfreightwagons,electricanddiesellocomotivesandspecial-purposevehiclestopassengercoachesandmultipleunits.

• Yourpartnerforheavymaintenance.Wecarryoutcomprehensiveoverhaulsandupgradesforyou,keepingtrainssafe.

• Yourpartnerforaffordablemaintenancecosts.Wereduceyourcostsbyprovidingguaranteedvehicleavailabilityandfixedprices.

• YourpartnerthroughoutSwitzerland.WearethereforyouthroughoutSwitzerland–thankstoourcomprehensivenetworkofdepotsandfacilities.

Operating.Your partner of choice.

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We thoroughly coordinate our activities in order to generate the maximum benefit from our assets: our fleet of passenger transport vehicles and our maintenance facilities. We make sure the SBB Passenger Division fleet operates safely and reliably, at home and abroad, round the clock on every day of the year. SBB regional and long-dis-tance services are our customers, and we are responsible for life-cycle manage-ment for the passenger transport fleet. Operating also handles facility management and competency management. We also ensure that fleet resource planning is con-sistent, and define resource requirements for maintenance and cleaning in the regions and facilities.

Life-cycle management.The core elements of integral life-cycle management under ISO 55000 are the technical, finan-cial and strategic modelling of assets – especially rolling stock, in our case. The central factor is that the fleet is considered on a comprehensive, forward-looking basis over the rolling stock’s entire lifetime. Operating is introducing life-cycle management in stages.

Fleet engineering.Fleet engineering monitors passenger rolling stock to ensure its safe condition, and maintains system reliability and availability over its entire life cycle. In order to define and develop rolling-stock maintenance systems our specialists analyse system status and take account of technical and regulatory guidelines. We also translate our customers’ wishes into technical requirements, and monitor their implementation. We thus create transparent preconditions for timely, economic production.

Production planning.We plan national and international rolling-stock schedules and maintenance services in close collaboration with our partners. We also prepare and manage the production programme for the maintenance and cleaning of our own fleet. We are responsible for devising service and production concepts for the passenger transport fleet.

Facility management.We plan, construct and operate maintenance facilities and building infrastructures in good time and in line with requirements. Our project leaders manage facility and construction pro-jects and procure services and operating materials. One task of facility management technology is to ensure that facilities are available.

Competency management.Our competency management system supports line management in its efforts to empower staff for their varied activities, and to be aware of competency status at all times. We identify and quantify training needs, and provide basic and advanced training courses for Operating.

Our expertise.Asset management.

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Our expertise.Fleet procurement and strategic purchasing.

We procure new rolling stock, handle the purchase of the means of production and technologies for fleet maintenance, and are responsible for supplier management. We are also responsible for SBB Passenger Division’s purchasing and supplier strategy.

Rolling stock procurement.Every year, SBB invests over CHF 700 million in new rolling stock. We have expert knowledge of the entire procurement process, from the definition of requirements to fleet roll-out. We devise detailed initial provisioning for new customers and their fleets.

A strategic focus of our service is developing and enhancing “life cycle cost” methodology. We have many years’ experience of working with the major rolling stock manufacturers.

Strategic purchasing.Our strategic purchasing process and professional supplier management, together with the implementation of sustainable procurement strategies, guarantee the highest quality of purchasing for the SBB Passenger Division. A coordinated lead-buyer system enables group-wide purchasing to be pooled.

Trial and licensing runs.We undertake the complete organisation and implementation of trial and licensing runs for rolling stock and components, and also type testing – in Switzerland and abroad. We also support our customers on questions of operating fleet roll-out.

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Our expertise.Train preparation.

We make sure that SBB Passenger Division trains – and also those of other partners – are clean and ready to depart on time and in the correct formation. We also plan and arrange all necessary services. In the “light maintenance” area we maintain and repair rolling stock during natural idle periods.

Preventive and corrective maintenance close to operations.Regular, scheduled maintenance of the SBB Passenger Division’s fleet is carried out to high quality standards in natural idle periods. In order to maximise rolling-stock availability, repairs and component replacement are carried out on site wherever possible. The staff at our service locations all over Switzerland are on duty 24/7. Our in-depth knowledge of light maintenance is second to none, and your guarantee of high-quality workmanship. Our competencies embrace all types of rolling stock used by SBB and our partner railways for regional and long-distance services. We also offer solutions for other partners and exter-nal customers. Our repair centre in Zurich Altstetten is a centre of excellence for demanding repair work on out-of-service vehicles. Here we rectify malfunctions in rolling stock, fulfil change orders, replace and repair defective components, and put right damage caused by accidents and vandalism.

We create quality.

Vehicle cleaning.As a general contractor for cleaning, we provide a complete range of cleaning services – from devising a cleaning strategy and cleaning the vehicles right through to quality control. Because we maintain cleaning facilities at a large number of locations in Switzerland, we can clean vehicles even during short periods of downtime. We also provide cleaning services for vehicles on the move if required. The focus in this area is very much on sustainability. Envi-ronmentally compatible cleaning products and recycling activities are a constant feature of our day-to-day work.

We create customer satisfaction.

Marshalling services.Every day our professional and efficient marshalling teams ensure that trains are ready to depart on time and in the correct formation. They couple and uncouple locomotives, form up trains, substitute coaches and carry out brake tests. In the station area they shunt trains and prepare them for departure in the correct formation. We have marshalling teams at numer-ous locations, with their own shunting engines where necessary. We attach enormous importance in our day-to-day work to safety: the safety of our staff and operating safety. We create safety.

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Our five service regions in overview.

Bern-Valais

West

Central

Zurich

East

Zurich Altstetten repair centre

Service facility

Cleaning and/or marshalling location

Cleaning and/or marshalling location operated from the main site

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We transport our customers safely, punctually and economically throughout Swit-zerland, observing internal and statutory guidelines on safety, quality and sustainability. Every day our resource planning unit plans, manages and controls locomotive crew deployment for 5,500 trains. We also provide our locomotive crews with profes sional basic and advanced training.

Locomotive crews.Over 2,400 drivers of both sexes drive SBB Passenger Division trains safely and expertly throughout Switzerland and into neighbouring countries. Locomotive driver management en-sures that locomotive crews receive the efficient, effective basic and advanced training that they need, when they need it. Our examiners – specialists certified by the Federal Office of Transport (FOT) – conduct tests to ensure that locomotive crews have the knowledge stipulated by the valid regulations, and also practical tests of train operation. We at locomotive driver management provide our locomotive crews with the technically up-to-date working materials that they need, and communicate with them at an appropriate level.

Resource planning.Over 80 specialists handle planning, management and control, together with HR controlling. Annual planning and allocation are dealt with here, as is the daily deployment of locomotive crews. We are also responsible for organising locomotive crews to work special trains at short notice, as well as for changing train driver rosters to adapt to the current traffic situation.

Our expertise.Locomotive driver management.

Northern Switzerland

Jura, Mittelland

West

Central Switzerland, Ticino

Zurich

Eastern Switzerland

Chiasso

Bellinzona

Brig

Lausanne

Genève

Biel/Bienne

Luzern

Bern

Arth-Goldau

Zug

OltenZürich

Zürich Altstetten

Basel

Rapperswil

Winterthur Rorschach

Romanshorn

Chur

St. Gallen

Ziegelbrücke

Fribourg

St-Maurice

Vevey

Vallorbe

La Chaux-de-Fonds

Delémont

Interlaken

Neuchâtel

Solothurn

Aarau

Brugg

Beinwil

Sargans

Schaffhausen

Our six branches in overview.

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We are responsible for ensuring that spare parts ordered for Passenger Division rolling stock are delivered in the right quantity and the right quality to the right place at the right time. To this end we manage over 195,000 different items and process 316,000 components per year in our works. We manage the agreed spare parts pool for SBB Cargo, SBB Infrastructure and external customers. We recondition their components, or order them from internal or external providers as required.

Planning.We plan the material requirement for new and reconditioned components on a rolling basis, taking planned figures, condition values and past experience into account. We then notify Purchasing of our various requirements. We conduct an ongoing internal review of production capacities, adapting these in line with requirements or procuring them externally.

Technical support.We have the technical resources for the active management of critical components, and we have drawn up the necessary quality guidelines for reconditioning. We are constantly increasing our knowledge of MTBF (mean time between failure) values, and we initiate the necessary adjustments to technical enhancements. We actively support the life-cycle cost team, and we develop proposals to cut costs.

Our expertise.Materials logistics.

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Component reconditioning.Our reconditioning works in Olten and Yverdon have broad expertise in the reconditioning of vehicle components for passenger rolling stock. We have very wide experience of trailer and motor bogies, including transmissions, engines, air-conditioning units, sanitary and pneu-matic components, automatic couplings and upholstery items. We repair or rectify com-ponents in accordance with clear, agreed standards to a high quality and at competitive market prices. This makes an important contribution to keeping rolling stock safe and available.

Procurement.We are familiar with the procurement needs of rolling-stock operators. We arrange and procure maintenance materials, and we ensure that rolling stock components can be readily sup-plied throughout Switzerland. We optimise our inventories on an ongoing basis. Close collabo-ration with our internal and external partners is the key to our success.

Logistics.We know our customers’ logistics requirements. At 16 locations all over Switzerland we man-age maintenance materials for the Passenger, Infrastructure and Cargo rolling stock. We arrange rapid transfers in urgent cases, return components for reconditioning, and monitor the expiry dates of all items.

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We overhaul, repair and modernise the SBB Passenger Division vehicle fleet, as well as fleets of other customers. At four maintenance facilities, we see to it that trains are safe – day in, day out.

Depots.At our four depots in Olten, Yverdon, Biel/Bienne and Bellinzona we carry out overhauls and major repairs, rectify vehicle faults, and conduct modernisation programmes for the renewal of entire vehicle fleets. Our vehicle portfolio is comprehensive: modern passenger coaches, multiple units, diesel and electric locomotives, freight wagons and service vehicles.

Overhauls and upgrades.Our overhauls include all services ranging from maintenance planning to the delivery of inspected and ready-to-run vehicles. We thus ensure that vehicles remain in safe, optimum con-dition for the duration of their next life cycle. Our value-enhancing and value-pre serving upgrade programmes extend the rolling-stock life cycle and present an interesting alternative to procuring new vehicles. These programmes constantly tailor rolling stock to rail users’ needs.

Our expertise.Rolling stock industry.

Yverdon

Biel/Bienne

Bellinzona

Olten

Centre of excellence for upgrades and overhauls of locomotives, multiple units and passenger cars

Centre of excellence for diesel and special-purpose vehicles Centre of excellence for freight wagons

Our works in overview.

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We support Operating with a broad portfolio of interdisciplinary services from five core areas. We are continuing to develop Operating, defining strategy and implementing it jointly with our productive areas. We are positioning Operating in the market as a mod-ern, expert service provider, and communication within Operating is conducted consistently and in appropriate terms. We are responsible for kaizen, and also for risk management, safety management, quality management and environmental man-agement. We take charge of the financial processes and provide Operating with Human Resources services.

Risk, safety, quality and environment.•Riskmanagement:Wehelpthebusinessareastoanalyseandmanagecorporaterisk.Tothisend,wecreatestandardproceduresfordealingwithrisk,conductauditstomon-itorimplementationandensurethatriskmanagementiscontinuallyoptimisedandeffectivelytargeted.

• Safetymanagement:WehelpthePassengerDivisiontoensurethatalloperationalpro-cessesaresafeandcomplywiththestatutoryandnormativeregulationsinthemanagementsystem.Objectivesandmeasuresareplannedandmanagedwithinthesafetypro-gramme.Ouractivitiesincludedraftingoperatingrules,updatingoperatinginstructionsforthevehiclefleet,obtainingandmaintainingnetworkaccess,andanalysingservicedisruptions.WeprovidespecialistsafetymanagementforsubsidiarycompaniesonbehalfofthePassengerDivision.

•Occupationalhealthandsafety:Wepromotethesafetycultureanddevelopwaystocontin-uallyimprovebothoccupationalandleisure-timehealthandsafetyandbuildingsecurity(safetyandsecurity).Wehelpalllevelsofmanagementtoassimilatetheprinciplesofpreven-tionandexemplaryconductwithinthePassengerDivision.Wemakeanactivecontri-butiontoplanningandimplementationintheconstructionandrenovationofbuildingsandfacilities.

•Qualitymanagement:WeadviseandsupportmanagersintheOperatingunitwithmethodsandprofessionalservicesinallareasofqualitymanagement.Ascoaches,wehelpourprocessownersandprocessteamstodevelopandcontinuallyimproveourbusinessprocesses.Wemonitortheimplementationofstatutoryrequirementsandnorms,aswellasofdirectivesissuedbysupervisoryauthorities,byconductinginternalaudits,andweactascontactpartnersforcertificationagencies.ToensurethatwecontinuetomeettherequirementssetoutinSwissandEuropeanregulations,wearecontinuouslydevelopingtheintegratedmanagementsystem.

Support areas.Services from Operating for Operating.

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• Environmentalandenergymanagement:Wemanage,promoteandcoordinatethecontinuingdevelopmentoftheOperatingunit’senvironmentalmanagementsystem.Wepro-videspecialistsupportfortheOPlineorganisationsandstaffintheefficientallocationofresources,andensurecompliancewithOperatingguidelinesintheenvironmentalarea.WemanagethePassengerDivision’senergy-savingprogramme,whichcutsenergycostsbyincreasingthefleet’senergy-efficiency,optimisingdrivingstyleandtakingeconomymeasures.ThismakesacontributiontoeconomicandsustainablemobilityatSBB.

•BusinessExcellence:WeassistOperating’smanagersinimplementingacomprehensivesetofsustainablecorporatemanagementprinciples.TothisendweusetheEFQMExcellenceModel.WetrainourexecutivestoapplytheEFQMmodelanditsbasicprinciplessothattheyandtheirteamscanperformtoconsistentlyhighstandardsinthelongterm.Weconductannualself-assessmentsinordertogaugethedegreeofmaturityacrosstheorganisation,andwedeviseimprovementmeasuresbasedonthesefindings.

Kaizen.•WeimplementtheJapanesephilosophyofkaizen(kai=“change”,zen=“forthebetter”)inordertoincreaseefficiencyinthelongtermwiththeresourcesavailable.Bymeansofkaizenourstaffcontinuouslyimprovetheirprocessesandworkingprocedures,soeverydaywebecomebetterinsmallsteps.Ourinternalkaizenorganisationgivesthemmethod-ologicalsupportandimplementationcoaching.Wealreadyknowthatwhatwedoworks,andwearethuscontinuouslyperfectingitinallareasofday-to-dayoperations.

Corporate development.• Togetherwiththebusinessareas,weidentifytheOperatingunit’srequirementsforcontinuingdevelopmentanddefineitsstrategyonthatbasis.Foritsimplementationweensurethatthecorrectareasofactionandprojectsareinitiated.Ouroverarchingprojectportfoliomanagementsystemensuresthatitisimplementedefficientlyandeffectively.Weactivelypromoteandsupportculturalchangeinourbusinessareainpursuitofadynamicproductionoperation.

•OnthebasisofthestrategywedefinetheITresourcesrequiredforproductionbyamoderncompanyintheshort,mediumandlongterm.Weempowerprocessusersandcon-tinuetheeconomic,sustainabledevelopmentofproduction-relevantITsystemlifecycles.

•WearecontinuingtodevelopourcompetitivenessbypositioningOperatingintheexternalmarketasamodern,customer-orientedproductionoperation.Wealsodemonstrateourefficiencytosubsidiaryandaffiliatedcompanies.TothisendwemaintaincloserelationswiththeOperatingunit’scustomersandfostertheircontinuingdevelopment.WeselltheservicesprovidedbyOperatingasacustomerentranceportal,ensuringjointlywiththeproducingareasthatthesearedeliveredefficiently,oncompetitivemarkettermsandinlinewithcustomerneeds.

•Agoodcultureofdialogueisanimportantsuccessfactor.Wemakesureourstaffreceivealltheinformationtheyneedingoodtime,andthattheyunderstandit.Tothisendwemaintainandrefineadialoguewiththemthroughvariouscommunicationchannels.

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Controlling Service Centre.• We managefinancialprocessesforthePassengerDivisionandtheserviceareas.WebearoverallresponsibilityfortheDivision’sfinancialmanagement,includingfinancialplanningprocessesandactual-statussettlement.Ourbusinessmanagementanalysessupportdecisionmaking.Theyareusedtodefineactionstobetakenandplayanactivepartintheirimplementation.

Human Resources.We are an indispensable partner to senior management, helping to ensure commercial success and to achieve the Operating unit’s targets. We contribute to the unit’s long-term development.

•Strengtheningmanagement:Weassistandsupportthedevelopmentofmanagersonthebasisofourcommonvaluesandmanagementprinciples.Westrengthenthemintheircurrentmanagerialroles,atthesametimeensuringthatforward-lookingsuccessionplanningisinplace.

• Anattractiveemployer:OurattractivetermsofemploymentandworkingconditionsreinforceandpromoteSBB’simage,andensurethatSBBmeetsitsstrategicpersonnelrequirements.

•Staffdevelopment:Wemaintainasystematicstaff-developmentprogrammeandsupportcross-divisionaldevelopmentopportunities.Genderanddiversityfactorsareconstantlyborneinmind,andwealsoattachgreatimportancetopromotinghealthandemployability.

• Industrialrelations:Weconductaregulardialoguewithoursocialpartnersandpractiseconstructiveindustrialrelations.

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Our customers.

We are proud that our client portfolio includes numerous rail industry companies both in Switzerland and abroad. Collaboration with many of our business partners is highly successful and of many years’ standing.

SBB Passenger DivisionSBB Long-DistanceSBB Regional

Group companiesSBB Cargo AGSBB Real EstateSBB Infrastructure

Passenger subsidiariesRegionAlps SASBB GmbHThurbo AGTilo SAzb Zentralbahn AG

External customersAAE Cargo AGAlpha Trains Europa GmbHAlstom (Schweiz) AGBLS AG (Group)Bombardier Transportation (Switzerland) AGChemins de fer du JuraCrossrail AGDeutsche Bahn AG (group)Die Schweizerische Post, PostLogisticsDSB Danske StatsbanerERMEWA SAFERROVIENORDHupac AGMontafonerbahn AGMRCE Dispolok GmbHÖBB Personenverkehr AGOensingen-Balsthal-BahnRAlpin AGRhätische Bahn AGRheinbahn AGSalzburg AGSersa Group AGSiemens Schweiz AGSihltal Zürich Uetliberg Bahn SZUSNCFSOB Südostbahn AGStadler Rail AGTamoil SATransports publics fribourgeoisTransports Publics Neuchâtelois SA (transN)Travys SATrenitaliaVossloh Locomotives GmbHWascosa AG

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Sep

tem

ber

2014

Your contact:

SBB AGPassenger Operating SalesWylerParkWylerstrasse 123/1253000 Berne 65Switzerland

Phone +41 (0)51 220 69 96Fax +41 (0)51 220 33 28verkauf.operating@sbb.chwww.sbb.ch/operating