2018 Integrated Interim Report – Departure into a new era!

Development in the first half of 2018

  • Positive effects from the market and competitive environment.
  • Very good acceptance of the new Berlin Munich link.
  • Further new ICE 4 vehicles.
  • Negative development of punctuality.

DB Long-Distance

H1

Change

2018

2017

absolute

%

Punctuality (rail) (%)

77.4

81.0

Rate of people making connections (long
distance transport/long-distance transport)
(%)

84.8

86.2

Passengers (rail) (million)

70.9

68.3

+2.6

+3.8

Passengers (long-distance bus)
(million)

0.3

0.3

Volume sold (rail) (million pkm)

20,615

19,452

+1,163

+6.0

Volume sold (long-distance bus)
(million pkm)

82.7

79.3

+3.4

+4.3

Volume produced (million train-path km)

71.0

69.8

+1.2

+1.7

Load factor (%)

54.6

53.3

Total revenues ( million)

2,255

2,107

+148

+7.0

External revenues ( million)

2,177

2,028

+149

+7.3

EBITDA adjusted ( million)

328

328

EBIT adjusted ( million)

206

216

10

4.6

Gross capital expenditures ( million)

380

215

+165

+76.7

Employees as of Jun 30 (FTE)

16,432

16,301

+131

+0.8

Punctuality declined due to the more heavily utilized infrastructure and high number of disruptions to the command and control technology, vehicles and provision of the vehicles. As a result of the decrease in punctuality, the rate of

people making long-distance transport connections also declined slightly.

The performance development in rail transport was positive.

  • The number of passengers and volume sold increased. The main drivers of this development were the expansion of services as a result of the new Berlin Munich link (German unification transport projects no. 8) and the Gäubahn. Market-driven stimuli were also positive.
    On the other hand, weather-related restrictions had a damp­­­ening effect.
  • The commissioning of German unification transport projects no. 8 and Gäubahn also resulted in an increase in volume produced.
  • As the number of passengers increased, the load factor rose as well.

Supply adjustments on individual lines led to an increase in volume sold in bus transport.

Operating profit development was driven by higher revenues, which were offset by higher expenses and the omission of the reimbursement of nuclear fuel tax, which meant that adjusted EBITDA remained virtually unchanged and adjusted EBIT declined slightly.

  • Revenues developed better due to price and performance effects. Supportive effects also resulted from a less intense competitive environment compared to the first half of 2017.
  • The significant decline in other operating income (27.0%) is mainly attributable to the reimbursement of nuclear fuel tax in the first half of 2017.
  • The increase in the cost of materials (+6.2%) was mainly driven by the higher volume produced, higher track usage charges and quality improvement measures.
  • The higher personnel expenses (+1.5%) resulted mainly from collective wage increases.
  • Other operating expenses (+13.4%) mainly increased due to higher expenses for travel support, passenger rights, marketing and IT.
  • The increase in depreciation (+8.9%) is mainly due to the new ICE 4. The locomotives of the 101 series reached the end of their accounting useful life, which had a counteracting effect.

Capital expenditure activity was at a significantly higher level and was characterized by vehicle procurement (ICE 4). The completion of the ICE facility in Cologne-Nippes dampened this development slightly.

The number of employees as of June 30, 2018 increased due to the tariff-based election model and as a result of the expansion of services.