|BALANCE SHEET / € million||Jun 30,|
EQUITY AND LIABILITIES
In the first half of 2022, there were no material changes to the International Financial Reporting Standards (IFRS) Regulations or DB Group’s consolidation and accounting principles that would result in any changes to the consolidated financial statements.
Total assets were above the level at the end of the previous year:
- Non-current assets increased significantly, driven primarily by higher property, plant and equipment (€ +656 million). This was due to a persistently high level of net capital expenditures, particularly in the Integrated Rail System. In addition, receivables and other assets increased (€ +510 million), partly as a result of higher receivables from plan assets for pension obligations, particularly at DB Arriva and DB Cargo, as well as the development of derivative financial instruments in connection with hedging transactions for foreign currencies and energy (€ +358 million).
- Current assets increased somewhat more sharply. The main factors were:
- higher trade receivables (€ +806 million), particularly at DB Schenker, as a result of freight rate development,
- the increase in assets held for sale (€ +441 million) especially as a result of the sale of DB Arriva’s activities in Sweden and the MTS Group,
- higher derivative financial instruments in connection with hedging transactions for foreign currencies and energy (€ +221 million), and
- a partial offset by the decline in cash and cash equivalents (€ –764 million).
The structure of the assets side remained almost unchanged, with a very slight shift in favor of current assets.
On the equity and liabilities side, equity increased, due in part to the positive profit (€ +400 million). Other drivers were the changes recognized in the reserves in connection with the revaluation of pensions (€ +1,867 million), the fair value measurement of cash flow hedges (€ +451 million) and exchange rate differences (€ +116 million).
The more significant increase in equity in comparison to total assets led to a substantial improvement in the equity ratio.
- Non-current liabilities were almost at the same level as of the end of the previous year. In essence, this development was characterized by:
- a decline in pension obligations (€ –1,596 million), mainly as a result of an increased interest rate at revaluation, that was almost completely eliminated by
- in part higher non-current financial debt (€ +1,352 million), and
- an increase in other liabilities (€ +99 million), particularly at DB Regional, in connection with vehicle purchases.
- Current liabilities declined. In essence, this development was characterized by the following:
- Lower current financial debt (€ –638 million). The main driver was the decline in short-term bonds (€ –376 million) and bank debt (€ –208 million).
- The decline in trade liabilities (€ –480 million), mainly at DB Netze Track (including reporting date effects) and DB Regional (mainly related to vehicle purchases), had a supporting effect.
- In contrast, there was an increase in other current liabilities (€ +212 million) at DB Regional and DB Cargo.
- Also in the liabilities held for sale (€ +212 million), due in part to the sale of DB Arriva’s activities in Sweden and the MTS Group.
In terms of the structure of the equity and liabilities side, the increase in equity resulted in a slight shift that reduced the share of non-current and current liabilities.