Development in the first half of 2021

• Overall, demand is declining due to the Covid-19 pandemic – no longer any Covid-19-related restrictions on volume produced.
• Income growth due to higher concession fees.
• Development of profits continues to be adversely affected by the Covid-19 pandemic.

The development of transport performance in the rail line of business was weak overall. In addition to increased weather-­related restrictions, declines related to the Covid-19 pandemic at the beginning of 2021 in particular had an impact, as the corresponding months of the previous year were not yet affected by the Covid-19 pandemic in the first quarter of 2020. As a result, the number of passengers and volume sold declined significantly. An improvement has been recorded since April 2021. Volume produced increased as a result of the temporarily reduced schedule in the first half of 2020 due to lockdown measures.

Overall income climbed more significantly than expenses. As a result, operating profit figures improved again. However, the weak performance development had a dampening effect:

• Revenues increased despite lower ticket revenues due to the Covid-19 pandemic, driven by higher concession fees. In addition to general increases by public transport authorities, a change in the contract for the Munich S-Bahn (metro) and the loss of a negative one-off Covid-19 effect in the first half of 2020 also had an impact.
• The other operating income also increased, mainly as a result of increased utilization of provisions for impending losses.

On the expense side, additional negative effects resulted mainly from the higher volume produced and price effects:

• Cost of materials increased as a result of the higher volume produced. This was particularly noticeable with higher expenses for the use of train paths and stations, as well as for energy. Price effects and more intensive maintenance also had a negative impact on development.
• Personnel expenses rose slightly in the wake of a greater number of employees and as a result of collective bargaining agreements.

The decrease in other expenses compensated for this:

• Other operating expenses declined significantly, mainly as a result of lower additions to provisions for impending losses.
• Depreciation also fell slightly. In addition to adjusting the useful life of vehicles to the contract term for the Rhine-Ruhr S-Bahn (metro), vehicles reaching the end of their useful lives also had an impact.

Capital expenditure activity increased within the framework of transport contracts won.

The number of employees was slightly above the level of June 30, 2020.

• Volume produced was back to the pre-Covid-19 level from March 2021.
• Revenue losses related to the Covid-19 pandemic also dominated the first half of 2021.
• Implementation of measures was delayed due to the Covid-19 pandemic.

The performance development in the bus line of business was slightly positive. Declines related to the Covid-19 pandemic in the first few months of the year, which, in the previous year had not yet been affected by the Covid-19 pandemic, were offset by performance gains.

The economic development improved: significant declines in expenses led to improved operating profit figures, with slight gains in income.

• Revenues increased slightly for performance-related reasons. Price effects supported the development.
• Other operating income increased significantly, mainly due to the utilization of provisions for impending losses.

On the expense side, there was significant relief driven by other operating expenses:

• Other operating expenses decreased as a result of lower additions to provisions for impending losses.
• Cost of materials fell, mainly as a result of reduced purchasing of transport services. In contrast, the procurement of personal protective equipment (PPE) and other protective equipment related to the pandemic had a negative impact on the first half of 2020.
• In contrast, personnel expenses rose as more services were performed independently, which increased the number of employees. Collective bargaining agreements also contributed to the increase in expenses.
• Depreciation also increased due to capital expenditures.

Capital expenditure activities increased, particularly in connection with transport contracts won.

The number of employees increased, mainly as a result of recruitment for the start of operations in the second half of 2020 and additional transport services in the first half of 2021.