Extract from the 2012 Jungfraubahn Holding AG Business Report

Important note:
This extract from the official business report was specially prepared for presentation on Internet. It is a considerably shortened version. Please note that the proposals by the Executive Board and Annual General Meeting for approval / resolution refer to the unabridged printed version in the German language. Only the full version is binding. The full version of the report (in German) may be downloaded using the link below.
The report is in some places associated with a view to medium and long-term prospects. All statements relating to the future hold uncertainties. They are projections that reflect the current views of the decision makers. Actual future events and decisions may turn out differently, particularly in relation to changes in environmental conditions. All declarations referring to the future are based on facts current at the time the report was prepared in March 2013.

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<media 17419>Business Report Jungfraubahn Holding AG 2012</media>

Dear Shareholders
Ladies and Gentlemen

Jungfrau Railways can look back on an exciting and eventful 2012. We celebrated the centenary of the Jungfrau Railway and paid tribute to the historic feats of our predecessors. At the same time, with 833,000 guests, we were able to welcome more visitors than ever before to the Jungfraujoch. During a time in which tourism in Switzerland has had to battle against declining visitor numbers, it has been possible to create new jobs in the region thanks to international group tourism. Despite the increased costs generated by the rise in demand, Jungfraubahn Holding AG has achieved a new record with a consolidated profit of CHF 26 million.

Centenary of the Jungfrau Railway

One hundred years, ago our predecessors celebrated the opening of the Jungfrau Railway and Europe’s highest-altitude railway station. The accomplishment of this pioneering work demanded courage, tenacity and great passion. It is thanks to the visionary spirit of Zurich industrialist Adolf Guyer-Zeller that the foundations were laid to open up the world around the Aletsch Glacier to the general public. And we still profit from this today. The celebrations began in January 2012. We engaged light artist Gerry Hofstetter to project a Swiss cross and other motifs onto the Jungfrau – images that were seen throughout the world. On the Jungfraujoch, at the end of March we opened the Alpine Sensation, a round tour with various fascinating presentations. A memorial commemorates the creator of the Jungfrau Railway, Adolf Guyer-Zeller, and the 30 railway workers who lost their lives. Books, a postage stamp a special coin, Jungfrau Railway chocolate and many other articles marking the centenary were on sale. Together with Federal Councillor Doris Leuthard, we celebrated the centenary with an official ceremony on 1 August – exactly 100 years after the official opening of the railway. A very special fest took place in Interlaken on 15 September, in the Swiss Touring Theatre DAS ZELT: all employees of Jungfrau Railways with partners and families were able to toast the Jungfrau Railway. Shareholders participated in the celebrations and the success of the company through a share subscription programme, financed by a nominal value reduction. Through the reduction in share capital, shareholders not only received a dividend but the sum of CHF 2.9 million was also put at their disposal. The amount of 50 centimes per share was distributed in the form of rights to subscribe shares from own stock at a reduced price. 25 call options entitled the holder to subscribe one share at the preferential price of CHF 47.50. The call options were actively traded on the SIX Swiss Exchange for 100 days, at rates between 45 and 80 centimes. The remarkable quota of 98.1% was recorded by the time the deadline for exercising the right to options had been reached. Jungfrau Railways enjoyed a high degree of media exposure during the centenary year. References to this are to be found throughout the business report. We have attracted worldwide attention to ourselves and left behind the image of a dynamic and innovative company that is extremely proud of its achievements. It is anchored in the region but radiates across the entire globe.

Prospects

Jungfrau Railways have started the year well. The demand from Asia in particular continues to be high. New markets with different holiday customs allow us to make increasingly better use of the off-peak seasons. For example, in February 2013 we recorded the best-ever demand from China, which coincided with their New Year celebrations and the related holidays.

Emoluments

We provide information on our salaries and emoluments in the business report within the usual framework. The Jungfraubahn Holding AG imbursement system is devised in a straightforward and transparent manner. The participation programmes are arranged in linear fashion, i.e. without leverage effect. More on this can be found in the corporate governance section of our business report. The publication regulations on imbursements are taken into account in the addendum to the Jungfraubahn Holding AG financial statement.

Thanks

We wish to express our sincere thanks to all our employees for their enormous efforts during the centenary year. They form the basis of our services and, with their commitment, set apart the quality of our offers. In addition, above all, we also owe heartfelt thanks to our customers and also to the authorities, the municipalities, mountain cooperatives, tourism organizations, neighbouring rail & cableways, distributors, suppliers, the International Foundation High Altitude Research Station Jungfraujoch and Gornergrat and all other partners with whom we are able to maintain such fruitful relationships. We also wish to thank all those who personally congratulated us on our centenary or even presented us with a gift.

Finally, we wish to express our sincere thanks to our valued shareholders for their trust in our Group and their loyalty to Jungfraubahn Holding AG.

Prof. Dr. Thomas Bieger                   Urs Kessler

Chairman of the Executive Board     Chief Executive Officer