Comparability with the first half of 2021

After giving due consideration to the following issues, the financial information presented for the first half of 2022 is comparable with the financial information for the first half of 2021 (in particular, in connection with the Covid-19 pandemic and the war in Ukraine).

Accounting and valution methods

There were no other new standards, interpretations or amendments to IAS/IFRS standards which were significant for Deutsche Bahn Group (DB Group) nor which were the subject of mandatory adoption within the reporting period.

Changes in segment alloction 

As of January 1, 2022, the Full Load Solutions (FLS, bundling of large-volume full load transport services in the European land transport network) business area was transferred from DB Schenker to DB Cargo. This transfer mainly relates to Transa Spedition GmbH and Hangartner Terminal S.r.l., Verona/Italy. The figures for the first half of 2021 in the segment report were adjusted accordingly.

Information regarding material events and business transactions in connection with the Covid-19 pandemic 

As was the case in the first half of 2021, the first half of 2022 also experienced considerable effects arising from the progression of the Covid-19 pandemic. As the situation began to improve in the first half of 2022, revenues improved in almost all segments and largely reached or even exceeded pre-Covid-19 levels. In the DB Schenker segment, revenues increased considerably compared with the first half of 2021, namely to € 14,162 million (in the first half of 2021: € 10,432 million ¹⁾), and also exceeded pre-Covid-19 levels. In DB Group, revenues in the first half of 2022 amounted to € 27,968 million (in the first half of 2021: € 21,784 million). For further information, please refer to the disclosures on revenues from contracts with customers (IFRS 15).

Within the framework of various state support programs, Federal grants were awarded to DB Group in connection with the Covid-19 pandemic. These grants were extended to individual subsidiaries of DB Group to, for instance, maintain passenger services, particularly in the segments DB Regional and DB Arriva. If they are not concession fees, these grants are disclosed in DB Group mainly under other operating income. In the first half of 2022, income from Federal grants increased to a total of € 491 million (in the first half of 2021: € 463 million).

As a result of the positive business development and Federal support measures, EBIT improved significantly in the financial year to € 781 million (in the first half of 2021: € –1,074 million); cash flow from operating activities increased significantly to € 1,498 million (in the first half of 2021: € 10 million).

Information regarding material events and business transactions in connection with the war in Ukraine 

Despite price hedging in the first half of 2022, energy price rises due to the war in Ukraine could not be fully compensated for, and resulted in increased ongoing costs of materials.

Some subsidiaries with their headquarters in Ukraine and Russia saw significant revenue decreases in some cases due to the limited business activities. However, this does not result in any material effects for DB Group as a whole. In addition, balance sheet losses could arise from the deconsolidation of subsidiaries located there if control no longer exists due to the restriction of substantive rights. At the present time, however, control by DB Group is assumed. As of the balance sheet date, there was no need to make material impairments from receivables for expected credit losses in these countries.

We do not currently see any indications of impairment at the cash-generating unit level in connection with the economic burdens associated with the war in Ukraine. Energy price hedging, passing on price increases to our customers and long-term opportunities from the shift in the mode of transport toward rail have so far compensated for the risks of the war in Ukraine.

Estimate and forecast uncertainties

As a result of the Covid-19 pandemic and the war in Ukraine, and also in view of the fact that it is very difficult to foresee the consequences in the first half of 2022, estimates and forecasts in the first half of 2022 are subject to a particular degree of uncertainty.

This applies, for instance, for determining provisions for loss-making passenger transport contracts, determining the valuation for doubtful receivables or for assessing possible impairments of assets.

Liquidity management and going-concern assumption 

In view of the unrestricted access of DB Group to the capital market and the financing commitments for infrastructure which have been agreed, the going-concern assumption applies to DB Group for the foreseeable future without any restrictions.

Statement of cash flows

Since December 31, 2021, of the financial receivables and earmarked bank deposits recognized, only the cash flows from cash securities for derivative financial instruments (credit support agreements; CSA) are allocated to cash flow from financing activities. Receivables from financing to third parties and the cash changes to receivables from transport concessions are shown under cash flow from investing activities (payments for investments in financial assets). The remaining financial receivables (in particular, finance lease receivables) were allocated to cash flow from operating activities.

As a result, the inflow of funds from financing activities decreased in the year under review by € 29 million and the outflow of funds from investing activities decreased by € 53 million, while cash flow from operating activities increased by € 82 million.

Scope of consolidation

Movements in the scope of fully consolidated companies of DB Group are detailed in the following:

Additions of companies

In the first half of 2022, DB Group spent a net of € 5 million (in the first half of 2021: net € 21 million) on acquisitions of companies in accordance with IFRS 3. This relates to the following company:

The additions continued to include the formations of two companies and one acquisition in which no business operations within the meaning of IFRS 3 were acquired. This is not a business combination within the meaning of IFRS 3.

These acquisitions were not of a material nature for DB Group.

Goodwill is to a large extent substantiated by the synergy effects expected for the period after the acquisition. This resulted in the following findings:

From the time of initial consolidation, Bitergo has generated revenue of € 0 million and a net profit of € 0 million.

Disposals of companies and parts of companies

The disposals from the scope of consolidation relate to one merger and 11 liquidations.

Effects on the consolidated statement of income

Overall, the effects of the changes in the scope of consolidation on the consolidated statement of income which have occurred compared with the first half of 2021 were not of a material nature.

¹⁾ Previous year’s figure adjusted; see section “Changes in segment allocation.”