TALENT 3 BATTERY TRAIN

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TALENT 3 BATTERY TRAIN BOMBARDIER BATTERY BRIDGING SOLUTION

TALENT 3 BATTERY TRAIN OVERVIEW 1. Why Battery Trains? 2. Battery Technology at Bombardier 3. Launch Plan 4. Conclusion and next steps

BATTERY TRAINS ARE THE IDEAL SOLUTION FOR COUNTRIES WITH PARTLY-ELECTRIFIED NETWORKS Rail electrification in Europe* Germany: 42% of the German rail network is not electrified 90% of all Diesel lines are shorter than 70 km; 50% of the lines are shorter than 40 km! Solution = Battery EMU (BEMU) with traction batteries = Modular traction batteries *Source: Allianz Pro Schiene (German NGO for the promotion of Rail Transport)

Why battery trains? Reduced TCO Reduced emissions and usage of renewable energies Reduced noise Total Cost of Ownership of the battery-powered TALENT 3 is significantly less in comparison to a conventional diesel train on a long-term scale. Reduction of CO2, NOx and particle emissions thanks to battery operation on non-electrified lines without diesel engine! Due to absence of the diesel engine, noise emission is reduced by 7 dba. Improved operability Infrastructure cost reduction Reduced travel time and increased comfort For operators: Improved operability and flexibility, fleet standardization, new connections, replacement of diesel fleet and infrastructure. For infrastructure operators and transport authorities: Avoids costly catenary electrification (ca. 1M / km) thanks to 100 % electrical battery train operation. For passengers: Direct connections and reduced travel times, leading to better services and increased ridership.

Alternative propulsion concepts Vehicle cost (standard 3-car train) Diesel Train 100 % ¹ Fuel Cell Train ~ 130 % ¹ Electric Train (EMU) ~ 110 % Battery Electric Train (BEMU) ~ 130 % Infrastructure None: Diesel stations existing Hydrogen Station and infrastructure needed Catenary Existing Catenary/ Charging Station Energy cost ~ 1.0 /km ~ 1.2 3.0 /km ² ~ 0,55 /km ~ 0,65 /km Maintenance cost High Medium Low Low Efficiency (well-to-wheel) Low Very Low High High CO2 emissions [kgco2 eq/km/seat] 0.021 ³ 0.06 ³ 0.014 ³ 0.018 ³ ¹Assumptions ²NOW/ Ernst&Young 2016, Excluding taxes, margins, administrative cost etc. ³TU Berlin CO2 Study, 2017; German Rail Energy Mix 2015 (ca. 30 % renewable energy), H2 generation via Electrolysis; Boundary conditions: Mileage: 150,000 km/ year; Electricity price: 0.13 /kwh; Diesel price: 1.0 /km; H2 price: 2.5 10 /kg

Total Cost of Ownership over 30 years Boundary conditions: - 75 three-car trains over 30 years; 100.000 km / vehicle / year; 50 % catenary-free operation + 50 % catenary-operation - 1.2 / l Diesel, 3% price increase per year; 5 / kg H2; 0.12 / kwh for electricity, 2 % price increase per year for H2 and electricity - Infrastructure included: Hydrogen (5 filling stations); Battery Train Re-Charge via existing Catenary

Bombardier s development of energy storage solutions 2003 2009 2012/13 2014 2015 2016 2019 Until today battery road vehicles have completed more than 820,000 km with 132,000 battery charging cycles! Battery operation in the tram network of Nanjing China has accumulated more than 1.5 million km

Bombardier s solutions in all power ranges Vehicle platform Energy efficiency Catenary free operation Additional functions LRV / Tram Project: RNV - Up to 22 % less energy consumption Project: Nanjing - 95% Catenary Free Operation (Recharging in stops) - Evacuation modes - Usage of lines where catenary installation is not possible Metro Project under development: - Up to 20 % less energy consumption Project under development: - Up to 40 km Catenary Free Operation - Safe Harbour Electric Multiple Unit Project: TALENT 3 Battery EMU/ IPEMU Fully electric train - Up to 40 km Catenary Free Operation; range can be higher depending on track topology and operational modes - Safe Harbour - Recuperating braking energy in Catenary Free Operation Locomotive Project: TRAXX DEME - Battery Boost - Emission free driving - Reduction in energy consumption Project: TRAXX - Last Mile Battery

Special modes Catenary-free operation Energy efficiency Use cases and value for customer Use case Function Customer value examples Increase Efficiency Increase Peak Power Increase line stability Close Gaps Extend Network New Lines / Networks Reduced energy consumption by avoiding the usage of brake resistors or by reduction of line currents. Increased peak power to reduce travel times and by that increase the number of passengers per time or optimize catenary infrastructure. Reduce catenary peak currents to avoid peak power and associated network stability problems (negative impedance). Improve usage of power plants. Bridge short none electrified sections like bridges, historic places, crossings, depots. Drive within limited sections like EMC limitations or operation within maintenance areas Extend existing, electrified lines by segments without catenary. Combination of electrified lines and none electrified lines. Charging done under catenary. Long distance catenary free. Charging done by additional equipment (static or dynamic charging at stations). Typical to replace Diesel vehicles and reduce emissions. Safe Harbour Reach next station in case of failures (vehicle, catenary, fire,) enabling passengers to leave the train.

Specific Use Cases for Battery trains # Operating Modes Scheme Advantage 1 Non-electrified track from C to D or as an extension of the mainline A-B A Direct rail link without interchange from A to D or D to B 2 Non-electrified interconnections D Non stop rail link from A to D and higher operational flexibility C D B A C B 3 Diesel trains are not allowed in tunnel stations due to fire safety reasons A C B Avoidance of fire safety issues and emissions by usage of Battery trains in tunnel stations 4 Non-electrified tunnels or bridges (electrification economically not viable) A B Economically viable electrical operation of the line by using Battery trains; less safety issues 5 Cross border traffic (A-D or C-B) without multi-system vehicles A C Border D B Avoidance of multi-system vehicles and diesel trains for cross border traffic 6 Mini-BEMU Operation/ Last Mile Battery Mode for shunting, depot and other short (ca. 5 km) non-electrified sections A C B No Diesel shunting locomotive; avoidance of depot/ infrastructure electrification cost

Bombardier s bridging battery solution Solution = Battery EMU (BEMU) with traction batteries = Modular traction batteries Product and technology Fully electric train, fitted with traction batteries Battery capacity targeted to cover non-electrified section of 40 km to 100 km* Capable of replacing diesel trains on partly- and non-electrified railway lines Proven traction battery technology Easy to implement solution the start of E-mobility on non-electrified regional railway lines! Full authorization and homologation according to TSI *Demonstrator range: 40 km; BT targets higher range of up to 100 km for upcoming Series application, Optimisation between battery capacity and infrastructure required for each Scenario

Bombardier s Battery System Modular and scalable li-ion battery system for trams, e-buses and now trains: Designed to fit exceptionally compact and light packaging to fit any tram, e-bus or train Latest technology optimized energy and power density for minimum lifetime of 5-8 years Safe under all operating conditions integrated safety concept monitoring voltage, currents and temperatures according to highest automotive and rail safety standards Compared to existing Standard Batteries charges more than three times faster weighs 50 per cent less

Bombardier s first TALENT 3 battery train (BEMU) is close to completion in Hennigsdorf, Germany!

TALENT 3 BEMU Launch 2016 2017 2018 2019 2020 Sept. 2016: Project Start - Development - Production of Pre-Series Vehicle March 2018: Design Freeze - Type Testing & Homologation (TSI LOC & PAS) Q1/2019: German Homologation Project Partners: - 12 months passenger operation with DB in Baden Württemberg (Germany)

Get Ready for battery technology with Bombardier Solutions Conclusion Electric and Battery electric propulsion is technically feasible and available today Optimization and case-specific optimization between Vehicle, Operation and Infrastructure is always necessary Energy Costs play a decisive role in the multi-parameter system Battery Propulsion has clear efficiency advantages compared to Diesel and Hydrogen Trains Bombardier will demonstrate the TALENT 3 BEMU in 2018! Next steps Homologation & 12-month passenger operation of the TALENT 3 BEMU Feasibility Studies for further applications in Germany and Worldwide Adaptation of operational and infrastructural boundary conditions for Battery Trains Further optimization of Battery Train and the Super System Bombardier is constantly looking for new partners and applications PLEASE FEEL FREE TO CONTACT US!

Q&A Thank you for your attention.