Semi-annual report of Jungfraubahn Holding AG 2014

Jungfrau Railway Group achieves half-year profit of 11.7 million francs

Excursion traffic to the Jungfraujoch - Top of Europe continues to benefit from the rising demand from Asia. Some 354,900 visitors travelled to the Jungfraujoch in the first half of 2014, 20,700 more than last year. The fact that the company has continued to intensively cultivate the Asian market and strengthen the Jungfraujoch – Top of Europe brand has clearly borne fruit.

After a good start to the 2013/2014 winter season, the result for the period under review from January to the end of the 2014 season dropped below average. The continuing decline in the number of holiday guests meant that despite good snow conditions, fewer winter-sport guests travelled to the Jungfrau Region. From 1 January 2014 to the end of the winter season, the JUNGFRAU Ski Region, of which the Jungfrau Railway Group has a 60% revenue share, recorded 868,100 skier visits and thus a reduction of 5.2%. The resultant revenue from the winter-sport business for the Jungfrau Railway Group was CHF 17.7 million, a reduction of 4.0%. This result lies considerably below the good winter-sport years.

In the first semester of 2014, the Jungfrau Railway Group achieved a profit of CHF 11.7 million, a half-year result of 5.6% above that of the previous year. The company recorded an operative result (EBIT) of CHF 14.9 million and achieved an EBIT margin of 18.7%.

Visitor frequencies

2014

2013

Change

1/1-30/6

Jungfraujoch (Top of)

354'900

334'200

6,2%

JUNGFRAU Ski Region skier visits

868'100

916‘100

-5,2%

Traffic revenues(CHF in
thousands)

Jungfraujoch-Top of Europe

39'799

37‘784

5,3%

Mountain Experiences

3'539

3‘102

14,1%

Winter Sports

17'699

18‘434

-4,0%

Freight traffic

843

835

1,0%

Total gross traffic earnings

61'880

60‘155

2,9%

Reductions in revenue

-2'877

-2‘569

12,0%

Total

59'003

57‘586

2,5%

Expansion project: V-Cableway

The Jungfrau Railway Group, together with the Grindelwald-Männlichen Gondola Cableway and the Bernese Oberland Railway, is planning to construct a V-Cableway that will not only provide access to the Männlichen but also to Eigergletscher. The purpose of the project is to create new perspectives for future generations and to substantially increase quality for summer and winter guests. The V-Cableway is an integral part of an overall project that consists of the following eight key elements:

1) Rothenegg railway halt and new rolling stock for Bernese Oberland Railway (BOB).

2) Joint terminal at Grund with shops and businesses as well as a direct connection to public transport.

3) Parking garage with around 1000 spaces.

4) Replacement of Männlichen Aerial Gondola with modern, 8-seater gondolas.

5) New 3S (tricable) cableway, the Eiger Express, from Grindelwald Grund to Eigergletscher with 44 gondolas, each with 28 seats.

6) New Wengernalp Railway (WAB) rolling stock, improved service to Wengen, new Wengen shuttle.

7) New Jungfrau Railway rolling stock, increased quality and no more standing places in trains.

8) First terminal at Grindelwald Grund with direct bus connection to First Aerial Cableway making it easier to change ski areas.

The project has been continuously developed and adapted since the publication of the public participation report at the end of 2013. Canton Bern commissioned a study on the "Economic impact of the V-Cableway project on Canton Bern". The final report shows that the project is of considerable economic significance to the Jungfrau Region, especially Grindelwald. To clarify the situation, a Lütschinentäler (Lütschinen Valleys) traffic corridor study was carried out by Metron Verkehrsplanung (Traffic Planning) AG. The results state that the proposed measures can overcome traffic issues.

The V-Cableway exhibition in Grindelwald opened at the end of May 2014. In July, a report was drawn up by the Federal Commission for the Protection of Nature and Cultural Heritage. This is an integral part of the total information laid open to the public. Weekly public “V-Cableway ad hoc meetings” have been held since August. On 19 October, the Wärgistal mountain cooperative will vote on the right for the 3S-cableway to travel over its land and on a leasehold contract to build the top station at Eigergletscher. The polls will be held on 24 October in Grindelwald and on 27 October in Lauterbrunnen. Jungfrau Railways and the Grindelwald-Männlichen Aerial Gondola attach great importance to intensive dialogue with the involved landowners, mountain cooperatives, authorities and environmental and landscape protection organizations.

New rolling stock for the Jungfrau Railway

The Jungfrau Railway has ordered four new three-section low-floor trains from Stadler AG. The new rolling stock is expected to be delivered in the first half of 2016.

Renovation of Gletscher Restaurant

The Gletscher Restaurant was reopened on the Jungfraujoch on May 1, 2014 after more than ten months of building work. With the renovation, Jungfrau Railways have invested around 11 million francs in increasing the quality of their Top of Europe excursion destination. The centrepiece of the renovation is the new glass facade, which over two floors affords an unobstructed view of the Aletsch Glacier.

Shareholders Club

All shareholders holding more than 250 Jungfrau Railway Holding AG shares on the deadline of 1 October 2014 are represented in the Jungfrau Railway Group Shareholders Club. The latest offers can be found at www.jungfrau.ch/aktionaersclub.

Prospects

The Jungfrau Railway Group started its second semester with a new attraction. On July 16, 2014, the Lindt Swiss Chocolate Heaven was opened on the Jungfraujoch, accompanied by a show tennis match with Roger Federer. Despite the poor weather, 264,000 visitors travelled to the Jungfraujoch in July and August, equal to the number of visitors for the same period in the 2012 centenary year. Based on the excellent level of bookings, the Jungfrau Railway Group is optimistic that the most important income pillar – excursion traffic to the Jungfraujoch – will reach the level of last year.

Despite the difficult economic situation, the Jungfrau Railway Group hopes to repeat last year’s good start to the winter-sport season.