Updated environmental Statement2018

voestalpine Schienen GmbHwww.voestalpine.com/schienen

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environment, Safety, QUality and energymanagement policy

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being an innovative company, voestalpine Schienengmbh is committed to the highest principles of environ-ment, quality, safety and energy. in order to take thesematters into account and to guarantee their day-to-dayimplementation to a high standard, the integrated management system has to fulfil the requirements of iSo 9001 and iSo 14001, the regulations of the emaS ordinance, the standard ohSaS 18001 and iSo 50001. as from may 2017, these have formed binding guidelinesin the areas of environment, quality, safety and energy.

Quality for uS meanS meetinG » requirements and expectations of internal and external customers and suppliers» market requirements, especially just in time deliveries of ultra-long head hardened rails that are ready to be installed» the development, production and supply of products and services which comply with customer demands and expectations.

environmental protection and enerGy for uS meanS » the continuous reduction of environmental impact» the compliance with relevant statutory environmental requirements» the consideration of environmental impacts of development, production, supply and recycling of our products» the avoidance of accidentally caused emissions and continuous control in compliance with environmental policy and its objectives» open communication with the public, customers, suppliers and authorities» that contracting parties working at our premises meet our environmental regulations

» the best possible protection of resources» continuous improvement of energy efficiency» making the best possible use of existing energy.

Safety for uS meanS » the compliance with applicable industrial safety laws and other requirements that the company is obliged to meet» the maintenance of our employees' health by means of active prevention measures and activities for healthy people» the open communication with employees, interested parties and authorities» the continuous development and implementation of measures for accident prevention: prevention of work-related diseases and promotion of health» the continuous improvement of occupational safety and health» the continuous hazard determination, risk assessment and risk control of hazards for employees and third parties» the obligation of all employees and contracting parties to comply with the occupational safety and health regulations and to actively cooperate in their implementation» age-based working is a permanent objective.

Quality, environmental protection, energy, occupational safety and health are equally importantcompany objectives for us. the sense of responsibility for environment, quality, safety and health is encouraged in each employee by means of the "continuous improvement process" and consolidated by advanced training measures. management monitorsand regularly assesses the effectiveness of the integrated management system.

management policy voestalpine Schienen gmbh

dr. eva aigner di frederick Kübler di martin reicher di dietmar Weiss

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organiZational chart voestalpine Schienen gmbh

purchasing

leeb (pU)

fB

legaldepartmentgrübler (pU)

fr

controlling *

Sorgmann

fc

financedepartment

Zmölnig (pU)

ff

Human resources

Kutschi

fp

it-management

rath

fi

managementaccounting & reportingZirbisegger

fc 1

Balancestaxes

Zmölnig (pU)

Hr competence

centerKutschi (pU)

measures & performancecontrolling

plank

treasury / ac-counts / receiva-

ble payablegruber

personnel- &organisationaldevelopmentdel negro (pU)

asset management

harler

Hr-Services

Kutschi (pU)

Works council

ang arb

ff 1 fp 1

fc 2 ff 2 fp 2

ff 3 fp 3

fp r

f / aiGner

* incl. risk managementStatus: 1 may 2018

dr. eva aigner

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communication

galler (pU)

KK

Sales

Jungwirth

Kv

Strategicmarketing

platzer

Km

product-management

Jörg

Kp

production

reicher (pU)

tp

technology

reicher (pU)

tQ

anlagen-management

Zorn

ta

logistic

mader (pU)

Bl

Service

Weiss (pU)

BS

order processing &Ship logistic

eder

Sales-depart-ment Kv 1

girsch

rolling mill

Windisch

testing & inspection

Qu-statisticsStruzl

Systems engineering

electricoberpichler

Shipping &customs Handling

huber

competencecenter

WeldingZlatnik

Sales Service

fuchs

Sales-depart-ment Kv 2

Strouhal

finishing mill

mader

research & development

brantner

Systems engineeringmechanicsWeichbold

Special logistics

baier

technical customer

ServiceJörg (pU)

Sales-depart-ment Kv 3

pesec

rolling technology

pernsteiner

Heat treatmenttechnology

perner

plant projects

reichmann

industrial accountancy

brandl

Sales-depart-ment Kv 4

pichler

maintenance

Zorn (pU)

Sales-depart-ment Kv 5

liberge

production planning & Schedulinglempradl

Kv i Kv 1 tp 1 tQ 1 ta 1 Bl 1 BS 1

Kv 5 Kv 2 tp 2 tQ 2 ta 2 Bl 2

Kv t Kv 3 tp 3 tQ 3 ta 3

t-BW

Kv 4 tp 4

Kv 5 tp 5

management-systems **

rauscher

occupationalSafety

friese

t-mS t-Si

K / KüBler t / reicHer B / WeiSS

** environment, Quality, energy, Safety

di frederick Kübler di martin reicher di dietmar Weiss

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input

oils, lubricants, and chemicalsnatural gaselectricitycompressed air hot water oxygendrinking water pure water cooling Water

output

ScaleScraphazardous wastenon-hazardous wastenoX

co2

coprocess waste water

Key figUreS

the following figures refer to one ton of produced rails, input stock and permanent way profiles (total output 545,497 t).

Quantity

110,009274,278

43,51029,039,257

13,7715,842

68,7242,024,789

85,204

Quantity

4,18931,703

401,7701,858,381

22,58748,947,000

10,8802,109,993

unit

kgmWhmWh

m³mWh

m³m³m³m³

unit

tt

kgkgkgkgkgm³

2017/2018

0.20170.50280.0798

53.23450.02520.01070.12603.71180.1562

2017/2018

7.679258.1176

0.73653.40680.0414

89.72920.01993.8680

2016/2017

0.06730.48860.0832

51.24340.01840.02420.12773.78180.0648

2016/2017

10.272156.6699

1.13433.36380.0446

87.13920.02573.8466

2015/2016

0.37250.49980.0769

46.61720.01170.00540.11964.20900.0050

2015/2016

8.901458.3177

0.94302.14830.1093

88.42390.03074.2140

Unit

kgmWhmWhm³mWhm³m³m³m³

Unit

kgkgkgkgkgkgkgm³

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compariSonWaSte management

Key number G description 2016/2017 in kg 2017/2018 in kg

17201 not contaminated wood packaging and timber waste 14,870 28,14017209 g Wood, impregnated with tar oil 0 017213 g Wooden packaging contaminated 107,780 127,34018718 Waste paper, board and paper, uncoated 9,245 16,25031103 Waste from furnace cleaning (from metallurgical processes) 0 23,78031111 Steelworks and foundry debris 10,240 031405 glass fibre mat 1,660 7,68031409 building rubble (no construction site trash) 9,340 9,94031411 Spoil with background contamination 963,550 031414 fireclay 139,000 225,95031416 mineral fiber (glas, mineral wool) 120 18,60031424 other contaminated soil 389,050 1,123,85031427 concrete rubble 28,000 226,95031434 Used filters and absorbents 0 031440 g blasting material waste 4,160 031444 abrasives 5,088 10,45531468 White glass (glass packaging) 73 031489 moulds and casting sands 9,819 4,00031614 Sludge from iron works 11,600 035102 g Scale and hammer waste products, hazardous 0 3,00035103 iron and steel waste contaminated 112,659 8,20035103 g contaminated iron and steel waste, hazardous 42,220 54,38035105 ferrous metal packaging and containers 1,890 6,89535106 g ferrous metal packaging with residual content 29,686 11,07635201 g electrical & electronic devices with environment-relevant quantities of hazardous parts 1,780 035202 electrical and electronic device parts 0 035205 g cooling and ac machines with coolants containing cfcs and fcs 544 1,71435206 g air conditioning machines with other coolants 0 035212 g visual display units including cathode ray 28 035220 g old electrical and electronic equipment 0 035230 g old electrical and electronic equipment, small 4,112 6,95035231 old electrical and electronic equipment, small 0 035314 cables 3,316 5,65635315 non-ferrous metal scrap 200 23535322 g lead batteries 0 035338 g batteries, unsorted 27 2535339 g fluorescent lamps 70 38452725 g other watery concentrates 206,990 054102 g Used oil 22,556 1,440

g = gefährlicher abfall = hazardous waste

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Key number G description 2016/2017 in kg 2017/2018 in kg

54201 g oil gatch 140 5,52054202 g fats 19,986 2,51054401 g Synthetic coolants and lubricants 34,320 60,70054402 g drilling and grinding emulsions 4,630 054408 g other oil-water mixtures 84,200 85,88054702 g oil separator contents 5,520 10,12054912 bitumen, asphalt 0 95,10054926 g Used oil binding materials 5,360 1,74054929 g oil containers 198 054930 g Solid grease & oil contaminated materials (waste from garages, production facilities & petrol stations) 24,450 27,31355502 g Used varnishes, paint, if solvent 0 055509 printing ink residues, copier toners 98 055513 old paint, old dye hardened 0 24057127 g plastic packaging with hazardous residue 2,008 059305 g laboratory waste and chemical residues 24 9059803 g Spray cans with residual content 1,495 1,58891101 domestic waste and domestic waste-like waste 42,037 34,12091201 packing material and board boxes 3,585 55091207 light fraction from packaging collection 8,850 9,25091401 bulk waste 21,765 2,54092105 trees and shrubbery cuttings 0 0

total 2,388,339 2,260,151

Hazardous waste G 602,284 401,770non-hazardous waste 1,786,055 1,858,381

interim storage:31427 concrete rubble 28,000 031614 Sludge from iron works 0 15,100

internal utilization:35103 iron and steel waste contaminated 211,600 15,40035102 Scale and hammer waste products, mill scale 8,791,500 11,876,850

Sales:35102 Scale and hammer waste products, mill scale 1,262,100 2,97535103 iron and steel waste contaminated 0 239,200 17202 construction timber and demolition wood 0 90,250

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material balance – inpUtQUantitieS 2017/2018

Quantities unit

raw materials:Steel blooms for rails and permanent way material 581,334 t

auxiliary and operating media:oils and lubricants 110,009 kgmetal rolls 933 trefractory products 2 tacetylene (gas) 1,576 m³packing material 29,640 kgWood 1,941 m³

energy sources:heating oil 4,030 lcoke 0 kgpetrol 1,323 ldiesel 27,487 lnatural gas 274,278 mWhelectricity 43,510 mWhcompressed air 29,039,257 m³oxygen 5,842 m³

Water:hot water 13,771 mWh drinking water 68,724 m³cooling water 85,204 m³pure water 2,024,789 m³

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material balance – oUtpUtQUantitieS 2017/2018

Quantities unit

rails, input stock and superstructure profiles 545,497 tScale 4,189 tScrap incl. plant scrap 31,703 tSamples rolls 853 t

non-hazardous waste 1,858,381 kg

Hazardous waste 401,770 kg

nox 22,587 kgco2 48,947 tco 10,880 kgprocess waste water 2,109,993 m³

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developmentShipping volUmeS

development of shipping volumes and type of shipment: rails (in tons) of business years 2013/2014 to 2017/2018

600,000

550,000

500,000

450,000

400,000

350,000

300,000

250,000

200,000

150,000

100,000

50,000

02014 – 2015

572,455

2015 – 2016

582,879

2013 – 2014

520,027

2016 – 2017

546,398

truck

via railway to ship

railway

7.20 %

11.67 %

81.13 %

551,206

2017 – 2018

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continUoUSimprovement program (cip)

n proposals submitted in the context of the cipn cost saving in €

each of the 700 employees of our company participates,as a member of a group, in the continuous improvementprogram. this process was introduced in 1996. the groupsmeet regularly at their place of work so that they can present and implement their ideas and improvement suggestions in familiar surroundings. if these ideas are successfully implemented, the employees are rewarded within the framework of the employee suggestions system.

each group includes a trained speaker and is supported by coaches in order to ensure quick implementation. in addition, the employee suggestion system makes sure that all employees are involved in the active implementation of environmental objectives. in this manner the company has set up an important forum for ideas for ecological and economic development.

2,500

2,000

1,500

1,000

500

02013 – 2014 2014 – 2015 2015 – 2016

1,814

2016 – 2017

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0

1,555,000

1,2851,343,000

1,033

2,100,000

1,367 1,255,000

2017 – 2018

1,6091,470,500

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teammanagement SyStemS

di peter friese

Stefanie Werschonig

ing. hermann rauscher

Kerstin egger

ing. herwig otto

ing. andreas Schmidt

ing. mario radischnig

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the best performers out of 16,000 suppliers were awarded in 16 different categories by the ecovadis platform.

Since 2007 the voestalpine Schienen gmbh has been taking part annually in the analysis of ecovadis and has always been counting to the topperformers in the last years. this brings additionalcompetitive advantages among our customers, e.g. Sncf (french national railway) and db (german railway), who also focus more and more on environment and sustainability.

We won this award due to our constant efforts tocontinuously improve in the areas of environmentand sustainability.

ecovadiSaWardthe voestalpine Schienen GmbH has beenawarded Sustainability leadership award by the ecovadis platform in the category Best performer in Heavy manufacturing.

award ceremony in paris during the Sustain 2018,third and fourth from left: Stefanie Werschonig and hermann rauscher / management systems voestalpine Schienen gmbh

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corporate targetS

corporate targetS Safety

customers / market

StaffQuality

environment / energy

research & development

production

costsStorage quantityinvestment program

agenda item

Safetycustomers / market

Qualityenvironment / energy

research & development

production

costsStorage quantityinvestment program

Staff qualificationStaff satisfaction

agenda item S

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2017 / 2018 Staff

2018 / 2019» reduce ltifr (lost time injury frequency rate) from 16 to 13» implementation of the defined occupational safety investment program» minimum sales quantity 540,000 t» revenue increase in order to compensate the increased steel costs» implementation of market launch concepts for new rail grades» target-oriented, deepening staff training » implementation of measures out of maZe 2016 and t-mag 2018» certification management systems according to iSo 45001:2018 / optimization management systems according to iSo 9001» Specific energy consumption minus 1 % for vignol rails» environment management system iSo 14001; emaS: expansion by epd certificate (environmental product declaration)» completion of Xr2 project with fixation of a railtrack test» closing of the project optimization temperature measurings» continuation of evidence of railtrack performance for flawless rail grades» output increase from 93.8% to 94.0% » further increase of specific shift performance» implementation of measures out of "100-points-program" for technological, procedural and planning-oriented process improvements, entire implementation tpm» fulfillment of the ambitious cost optimization programs cip and f3» average stock level in the finished goods store 25,700 t» time and cost-effective implementation of the investment program, among others:» completion of reinforcement of Ultra flexible rail mill » enlargement of testing center building» performance optimization Sbl2 » installment of a new testing technology to detect longitudinal cracks (emat)

target

» reduce ltifr (lost time injury frequency rate) from 19.6 to 16 yeS» minimum sales quantity 530,000 to yeS» revenue stabilization with ebit = 6 % of turnover no» certification of management system according to iSo 9001:2015 yeS» Specific energy consumption minus 1.5 % for vignol rails no» certification of the environmental management system according to iSo 14001:2015 yeS» Start of two rail tests with new grades yeS» development of grades according to target products portfolio for three strategic fields of business yeS» optimization of temperature measurements in production process no» output increase from 93.7 to 93.8 % no» net production and shipment: 530,000 tons with 15-18 shifts yeS partially» enrolement and increase of tpm-operations to the whole machinery tp1 yeS / tp2 no» Strict compliance with cost optimized budget rules yeS» determination and compliance with optimized storage quantities per length range and profile group no» deadline and cost-related implementation of the investment program, among others:» framewear strengthening no / Storage of utilities yeS partially» occupational safety topics yeS / pre-project saw-drilling line ii yeS / pre-project ultrasonic device new no » execution of the planned training program yeS» derivation of an action plan based on staff satisfaction survey 2016 yeS

target Status

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emaSenvironmental eXpertiSe

the managing emaS environmental experts authorised to sign, dipl. ing. christian reznerof the environmental expert organizationtüv Süd landesgesellschaft Österreich GmbHcampus 21, europaring a04301, a-2345 Businesspark Wien Süd registration number at-v-0003

confirm the inspection, that the site or the entire organization, respectively, as stated in the environmental declaration of the organization

voestalpine Schienen GmbHKerpelystraße 199, a-8700 leobenwith registration number at-000183

fulfils all requirements of the regulation (ec) no. 1221/2009 of the european parliament and of the council of 25 november 2009 on the voluntary participation by organizations in a community eco-management and audit scheme (emaS).

With the signature of this declaration, we confirm that» assessment and validation were performed in full compliance with the requirements of regulation (ec) no. 1221/2009,» the results of assessment and validation confirm that there is no evidence for non-compliance with applicable environmental regulations,» the data and statements of the environmental declaration of the organization/the site provide a reliable, credible and true image of any activities of the organization or the site, respectively, within the area stated in the environmental declaration.

the environmental expert organization tÜv SÜd landesgesellschaft Österreich gmbh has been authorised for the c24.10-0 (nace-code 2008) via notification by the federal ministry of agriculture,forestry, environment and Water management.

leoben, may 28, 2018

the managing environmental experts authorised to sign of tÜv SÜd landesgesellschaft Österreich gmbh, campus 21, europaring a04301, a-2345 businesspark Wien Süd, austria

this site operates an environmental management system and its environmental performance is reported to the public in accordance with the community eco management and audit scheme on the industrial environmental protection of this site (reg. no. at-000183).

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ing. hermann rauscher environmental officer

voestalpine Schienen gmbhKerpelystraße 199, 8700 leoben, austria phone: +43 50304-26-3473telefax: +43 50304-66-4954hermann.rauscher@voestalpine.comwww.voestalpine.com/schienen

our environmental officer, hermann rauscher, would be delighted to provide you with moredetailed information regarding thelatest environmental statement, the environmental objectives of the company and environmentalmeasures taken so far.

imprintcopyright owner & publisher: voestalpine Schienen gmbh8700 leoben, Kerpelystraße 199

responsible for content:board of management of voestalpine Schienen gmbh

concept and design: buero zwo design und kommunikations-gmbh8605 Kapfenberg, Koloman-Wallisch-platz 1phone: +43 03862-26800

voestalpine Schienen GmbHKerpelystraße 1998700 leoben, austria t. +43/50304/26-0f. +43/50304/66-4954www.voestalpine.com/schienen

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