Customer Information

Dear Sirs and Madams,

In the past few weeks, the relevant media and the daily news have indicated that the legislator has already put in place various steps to widen the toll charges for the German long-distance traffic network. With this letter, we would like to inform you about the current situation and first notify you of the initial consequences on the cost structure.

In essence, there are two decisive changes and adjustments ahead.

1. Increase of the Toll Charges on all German Federal Roads
   As from 1 July 2018, the German-wide toll network for lorries will be expanded. Along with motorways and similar German roads, all specialised federal German roads within the lorry-based routes will prospectively be included within these charges. Currently the toll-incurring route network is spread along approximately 15,000 km. In the future, this will comprise the network of all German federal roads of 40,000 km.

   The legal basis for this is currently undergoing a fourth amendment of the German long-distance toll law from 31 March 2017.

2. Adjustment of the Toll Rates from 01.01.2019
   The Ministry for German Transport, together with the transport infrastructure costs (2018-2022) have submitted the foundation for a significant toll charge increase, which is expected to take effect from 01.01.19. According to the directive, 1999/62/EG, costs for the air and noise pollution alongside infrastructure expenses will be incorporated into the toll costs. Currently, the draft law finds itself on its fifth amendment of the German long-distance toll law, in consultation with the various committees. Significant adjustments of the toll charges in the various classes are surely to be expected.

Both measures will in each case have direct influence upon the calculation of transport costs. At the relevant time, we will agree possible adjustment of the transport prices in individual discussions with you. However, a price increase of the transport costs will not be avoidable.

We will immediately inform you as soon as there is secure knowledge of the effects of the described measures, especially in relation to the exact increases in toll charges, which will be presented.

Our employees in the distribution, especially the Key Account Managers will, at all times, be at your disposal should you have any further questions.

We hope that we have firstly comprehensively informed you about these developments.

Yours faithfully,

Sven Hornig
- Head of Sales–

Christian Hammacher
- Head of Business Unit Road -