Accelerate to a Frictionless Future in Rail and Transit

1. MOVE WITH PURPOSE ACCELERATE TO A FRICTIONLESS FUTURE IN RAIL & TRANSIT

2. 2 Transport is reinventing for the digital age. TRANSPORT INTRANSITION Copyright © 2018 Accenture. All rights reserved. • Boundaries in rail, transit, freight and logistics are blurring • Global passenger traffic is set to rise 50% from 2015 to 2030¹ • Customer expectations are rising • An additional 1.2 billion cars will on the road by 2030 – almost double from today² • $14B funding is being invested in transport/logistics start-ups³ ¹ Global Mobility Report 2017 ² Navigate Research ³ Accenture Research

3. 3 Disruption could reinvent rail & transit – as done by Amazon to retail, Airbnb to hospitality, smartphones to Kodak and Uber to the taxi business. New players and new platforms are leading the way with innovative, agile, scalable business models using IoT, smart real-time intelligence, connectivity, AI, data analytics, etc. DIGITALIS DRIVING DISRUPTION Copyright © 2018 Accenture. All rights reserved.

4. 4 Transit agencies are embracing asset management as a key enabler to ensure a safe, reliable and efficient transit service BALANCING COMPETING PRIORITIES PROVIDES A CONSTANT CHALLENGE Copyright © 2018 Accenture. All rights reserved. Investing in aging infrastructure vs scaling the network Delivering large capital programs Meeting stakeholder and regulatory requirements Maintaining a safety first culture Adapting to shifting market conditions and new technology Developing the workforce to evolve with the ecosystem

5. Consumers want more personalized interactions with travel companies. But customers feel travel companies are not taking advantage of “what they know” to help make better travel decisions.4 CUSTOMERS EXPECTMORE Copyright © 2018 Accenture. All rights reserved. 5 HOWEVER, ONLY 50%THINK TRAVEL BRANDS ARE SENDING RELEVANT COMMUNICATIONS THE REALITY 70% ALMOST OF CONSUMERS WANT COMPANIES TO PERSONALIZE THEIR COMMUNICATIONS THE EXPECTATION 4 The New Travel Experience

6. THEWAYWETRAVEL ISCHANGING Your customers live in an integrated app-driven, anywhere, anytime marketplace and want connected, frictionless end-to-end experiences. OFFICE RIDE-HAIL CYCLE HIRE TRANSIT STOP BUS-STOP RAIL STATION 6 GYM SCHOOL

8. 8 A typical rail company operating a business-as-usual approach puts 445 m€ (29.7%) in EBITDA at risk by 2020 to digital competitors.5 But with a new approach it could: • Boost profits • Unlock value • Innovate fast • Exploit new opportunities • Drive growth. WHAT’STHE OPPORTUNITY? 5 Digital Value Creation in Passenger Rail- Accenture Strategy Copyright © 2018 Accenture. All rights reserved.

10. 10 Embrace open, fluid ecosystems, operating as a partner alongside multiple affiliates, to transform services. This is key to deliver door-to-door services combining and connecting multiple transport modules. ENABLE INTELLIGENT SERVICES Copyright © 2018 Accenture. All rights reserved.

11. • Equip your decision makers with the tools to transform your transit operation • Drive your safety and reliability agenda • Optimize your short and long term investment decisions • Lower your lifecycle costs and deliver better value for money • Improve the accuracy of your planning and budgeting capability POWER YOUR ASSET DECISION- MAKING WITH INTELLIGENT ANALYTICS Copyright © 2018 Accenture. All rights reserved.

12. 12 PROVIDE ON-DEMAND CUSTOMER EXPERIENCES Copyright © 2018 Accenture. All rights reserved. Hyper-personalize and ease every stage of the customer journey. Integrate service channels for frictionless experiences, customizing real-time information to anticipate needs and enable contextually relevant interactions.

13. • Ensure customers feel more connected and engaged with your brand – emotionally and digitally • Bring to life the moments that matter • Drive brand sustainability and long-term value NURTURE LIVING LOYALTY Copyright © 2018 Accenture. All rights reserved. 13 Measure & evaluate Iterate & continuously improve Know your customers Predict customer needs Design relevant experiences & interactions Deliver contextually relevant multi-channel interactions

14. 14 Accelerate adoption of alternative technologies e.g. electric and hybrid vehicles, self-driving vehicles and renewable energy sources. Reduce energy consumption, waste and emissions, while fulfilling sustainability and compliance requirements. CAPITALIZE ON THE MATURITY OF ALTERNATIVE TECHS Copyright © 2018 Accenture. All rights reserved.

16. SEIZE THE OPPORTUNITY: KEY PRIORITIES Copyright © 2018 Accenture. All rights reserved. 16 TRANSFORM YOUR PURPOSE CREATE YOUR DIGITAL ECOSYSTEM BE CUSTOMER -FIRST It’s no longer about inventory and stock. It’s about meeting customer transport needs in the digital era, whenever and however. Embrace an open, collaborative approach to partnerships — adopting new digital skills and resources. Meet and anticipate customer needs—in the moment, on their terms. Accenture Strategy resources Tech Vision 2018 Fjord Trends 2018 Align strategy, design and execution to realize the value opportunity

17. Rotation to the New—the wise pivot—is a deliberate, perpetual journey, not a single event. It’s a four-step disciplined, programmatic approach to change to get the timing, scale and direction of investments right. DEFINE YOUR ROUTE Copyright © 2018 Accenture. All rights reserved. 17

18. Sales & Distribution Core Functions Revenue Management Unlock value from your core business to drive investment capacity. Adopt new tech to achieve new efficiencies, e.g. in: STEP 1 TRANSFORM YOUR CORE Copyright © 2018 Accenture. All rights reserved. 18 Planning & Operations

19. Strengthen your ecosystem plays Monetize underutilized assets Reinvent as a ‘living business’ Adopt analytics- driven customer acquisition Activate new demand from new markets to fuel growth in your core business. STEP 2 GROW YOUR BUSINESS Copyright © 2018 Accenture. All rights reserved. 19

20. Enter new markets with new business models Partner with tech leaders and disruptors Invest in emerging tech early Embed an innovation architecture Build new architectures to rapidly scale innovation, digitize customer experience and enable frictionless travel. STEP 3 SCALE THE NEW Copyright © 2018 Accenture. All rights reserved. 20

21. Single transport offering to a network of mobility solutions Physical customer service to multichannel digital travel assistance Rail provider to a provider of customer mobility services Finally, continue to pivot wisely in response to change – ensuring you stay competitive and relevant as the rail industry moves ever deeper into the digital age. For example, to pivot from: STEP 4 CONTINUE TO PIVOT WISELY Copyright © 2018 Accenture. All rights reserved. 21

22. ARE YOU READY TO Copyright © 2018 Accenture. All rights reserved. 22 MOVE WITH PURPOSE? CONTACTS ALDEN CUDDIHEY Rail and Transit Global alden.cuddihey@accenture.com MICHAEL ENGLIGH Rail and Transit NA michael.english@accenture.com PIERRE-OLIVIER DESMURS Rail and Transit EALA P-oliver.desmurs@accenture.com