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Chairmanʼs letter<br />
37<br />
Major events<br />
Interim Group management report<br />
Consolidated interim financial statements<br />
INVESTIGATIONS AT DB INTERNATIONAL<br />
The audit firm KPMG has been retained to lead internal investigations at DB International GmbH (DBI)<br />
following charges in the wake of preliminary investigation proceedings opened by the public prosecutor’s<br />
office in Frankfurt am Main. Prosecutors allege that DBI employees have in the past transferred payments<br />
and in-kind donations to decision makers abroad, either directly or via third parties. According to the<br />
prosecution, these contributions were given to elicit preferential treatment of DBI in regard to awarding<br />
orders. The official investigation is based on information we ourselves gave to the authorities. It cannot<br />
be excluded that a corporate fine or an order for forfeiture will be imposed on either DBI or DB <strong>AG</strong>.<br />
GERMANY SUED BY EU COMMISSION FOR ALLEGED FAILURE TO CORRECTLY<br />
IMPLEMENT THE FIRST RAILWAY PACK<strong>AG</strong>E<br />
The European Commission decided on June 24, 2010 to sue Germany and twelve other EU member<br />
states before the European Court of Justice. The affected countries are accused of insufficiently implementing<br />
the first European railway package, especially the unbundling requirements. Parties to<br />
this infringement proceeding are the European Commission and the Federal Republic of Germany.<br />
The Federal Government has fully rejected the allegations of the Commission thus far. DB Group is also<br />
of the opinion that the arguments of the Commission are invalid. DB Netz <strong>AG</strong> is independent from other<br />
enterprises within DB Group in its decisions regarding train path access and track charges. European<br />
railway law explicitly allows the holding structure chosen by Germany.<br />
DB GROUP WINS SUIT CONCERNING LONG-DISTANCE BUS Services<br />
In June 2010 the Federal Administrative Court voided the permit given to a competitor operating bus<br />
services from Frankfurt am Main to Dortmund. The Court objected to the fact that the Regional Council<br />
of Darmstadt had neglected to involve DB Group sufficiently in the licensing process. However, the<br />
decision also postulates that long-distance, scheduled bus services can be seen as a generally improved<br />
offer if it is significantly less expensive than traveling by rail.<br />
BERLIN S-BAHN CONCLUDES RENEGOTIATIONS<br />
In late June 2010 we negotiated with the Berlin Senate an adjustment of the existing transport agreement<br />
for the Berlin S-<strong>Bahn</strong> (metro), which had become necessary due to ongoing service limitations that<br />
had taken place since July 2009. The focus of the agreement is on defined quality features for punctual<br />
ity, cleanliness and customer satisfaction as well as a clearly defined number of quarter trains in<br />
service. Non-compliance with the requirements for punctuality, cleanliness and customer satisfaction<br />
might reduce concession fees in accordance with the regulations. The limit of contractual penalties<br />
per year was raised.