Development in the first half of 2021

• Recovery has begun – but negative Covid-19 effects still persist.
• Government support measures have a compensatory effect.

The number of passengers at UK Bus decreased as a result of Covid-19 effects. It should be noted here that the first months of the previous year were not affected by the Covid-19 pandemic. Demand has been recovering since March 2021.

The volume produced increased again, as fewer transports were canceled due to the Covid-19 pandemic.

The economic development was better. Revenue losses were more than offset by higher government support payments and led to a reduction in operating loss.

Income development was slightly positive:

• Revenue development declined, particularly as a result of Covid-19-related lower numbers of passengers and ­the discontinuation of the bus sales and hire business of Arriva Bus and Coach.
• In contrast, other operating income increased significantly, mainly as a result of higher Covid-19 support measures such as state bus service support grants.

The expense side showed stable development overall:

• Personnel expenses increased slightly.
• Cost of materials also increased slightly as a result of higher volume sold and higher maintenance. This was partly offset by lower expenses in connection with the discontinuation of the bus sales and hire business of Arriva Bus and Coach.

The decrease in other expense items ended up fully compensating for this:

• Other operating expenses decreased mainly as a result of lower purchased services and the absence of one-time effects in connection with the discontinuation of Arriva Bus and Coach.
• Depreciation decreased slightly as a result of lower capital expenditures.

This decrease in capital expenditures resulted from measures being postponed due to the Covid-19 pandemic.

The number of employees fell noticeably, mainly as a ­result of driver turnover, with workers not being replaced due to the reduced services operated.

• Continued negative Covid-19 effects, mitigated by government support measures.
• Services of Grand Central temporarily suspended during UK lockdown, until March 2021.
• Cessation of the ARN franchise on March 1, 2020.

The performance development at UK Trains was negatively impacted by the cessation of the ARN franchise. In addition, Covid-19-related impacts such as the commercial decision to temporarily suspend Grand Central had an adverse effect. However, it also needs to be taken into account that the ­beginning of 2020 was not influenced by Covid-19 effects.

The economic development was shaped by the ongoing negative Covid-19 effects. The operating profit figures worsened, driven by the significant decline in revenues:

• Revenues fell sharply, mainly due to the cessation of the ARN franchise and the decline in passenger numbers. Government Covid-19 support measures had a partially compensating effect.
• Other operating income also decreased sharply, mainly due to the cessation of the ARN franchise.

On the expense side, the cessation of the ARN franchise and CrossCountry contract changes led to a significant decline:

• Other operating expenses decreased significantly, mainly due to the cessation of the ARN franchise, lower franchise payments through to government support and reduced rental expenses following the direct award of CrossCountry (offsetting effect in the cost of materials).
• Cost of materials also dropped significantly, mainly because of the cessation of the ARN franchise. Higher infrastructure utilization expenses at CrossCountry had a partially offsetting effect.
• The decrease of personnel expenses resulted primarily from the cessation of the ARN franchise.
• The cessation of the ARN franchise resulted in a large decrease in depreciation.

The decline in capital expenditures also resulted from the cessation of the ARN franchise.

The number of employees fell slightly.

• Recovery has begun – but negative Covid-19 effects persist.
• Government support measures have a compensatory effect.
• New traffic in the Czech Republic has a positive effect.

The performance development in Mainland Europe was differentiated and characterized by ongoing Covid-19 effects, a recovery in demand, and new traffic:

• In rail transport, the number of passengers and volume sold declined as a result of Covid-19-related restrictions, particularly at the beginning of the year. In terms of volume produced, the Covid-19 effects were more than offset by new traffic in the Czech Republic.
• With bus transport, the effects from new traffic exceeded the Covid-19-related losses. The Covid-19 impact varied by region, depending on the extent of restrictions. The number of passengers and volume produced increased.

The economic development was much more positive again, driven by a noticeable growth in income:

• The significant increase in revenues was mainly due to the partial recovery of business activities and new traffic in the Czech Republic. Exchange rate effects had a positive impact as well.
• The other operating income also increased, mainly as a result of Covid-19 support measures and the utilization of provisions for impending losses.

The expense side was significantly influenced by the (re-)expansion of services as well:

• The increase in the cost of materials was driven in particular by higher fuel expenses as a result of the expansion of services. Moreover, new traffic in the Czech Republic and negative exchange rate effects also increased expenses.
• Personnel expenses increased as a result of the expansion of services and because of exchange rate effects.
• Depreciation increased significantly, mainly due to capital expenditure activity for new transport contracts in the Czech Republic.
• Other operating expenses fell slightly.

The decrease in capital expenditures also resulted from the conclusion of capital expenditure measures for new transport services. Capital expenditures have also been delayed due to the deferral of new contract awards, resulting in contract extensions.

The number of employees fell slightly.