The economic development of DB Group was marked by the recovery in passenger transport as a result of the declining impact of the Covid-19 pandemic and the strong development of our transport and logistics activities. Operating profit figures improved noticeably again. In passenger and rail freight transport, however, the situation remained under pressure:
- In the Integrated Rail System, revenue growth, mainly due to the recovery in demand for passenger services, higher concession fees and new services at DB Regional, exceeded additional burdens resulting from higher expenses, in particular for materials (including higher energy costs relating to performance and price factors) and personnel (increased capacity and wage increases).
- The operating income development at DB Schenker was once again very strong, driven primarily by the performance in air and ocean freight.
- DB Arriva also recorded a significant recovery in its operating profit figures.
Additional information is available in the section Development of business units.
The transition to the adjusted statement of income is a two-step process. The reclassification and adjustment procedure (2021 Integrated Report) has not changed.
Overall, income development was very positive:
- Revenues increased significantly.
- Other operating income also increased. This was partly due, among other things, to higher income from the sale of real estate at DB Netze Track and changes in provisions. Grants increased slightly. Higher income in connection with the Covid-19-related train-path price support (only paid out in the previous year in the second half of 2021) was largely offset by declining government grants at DB Arriva (especially at UK Bus and in the Netherlands) and effects in connection with the repayment of interest-free loans at DB Netze Track.
Expenses also increased significantly, due in particular to the business development at DB Schenker, increased energy costs and higher personnel expenses in the Integrated Rail System, though overall this increase was disproportionately compared to income:
- Cost of materials increased noticeably, primarily due to higher freight rates at DB Schenker. In the Integrated Rail System, the main factors were price- and performance-related increases in expenses for energy and maintenance, as well as higher purchased transport services at DB Cargo. At DB Arriva, higher expenses for energy and rail replacement services, among other things, had a negative impact.
- Personnel expenses also increased. In addition to wage effects, the higher number of employees also impacted the Integrated Rail System. There were additional effects at DB Schenker from the positive development of business operations.
- Other operating expenses increased due, among other things, to a higher demand for IT services. In addition, the intensification of advertising activities to win back customers, which were significantly reduced during the Covid-19 pandemic, and higher rental expenses, in particular for freight cars and in connection with cross-border transport services, increased expenses.
- Depreciation increased slightly due to capital expenditures.
Adjusted EBIT and adjusted EBITDA improved noticeably as a result. Adjusted EBIT was again positive.
- The slightly weaker net operating interest balance resulted from the development of interest rate levels.
Operating income after interest also improved noticeably and was once again positive.
- Net investment income remained at a very low level, and the change was mainly driven by lower losses at GHT Mobility GmbH.
- The significant increase in the other financial result was mainly due to exchange rate effects and the positive development of the fair value of other investments.
- The extraordinary result was roughly at the level of the first half of 2021 and resulted mainly from restructuring measures, effects from the adjustment of provisions (particularly in connection with civil proceedings on infrastructure fees) and transactions with affiliated companies.
|EXTRAORDINARY RESULT / € million|
DB Netze Track
DB Netze Stations
DB Netze Energy
Integrated Rail System
|Integrated Rail System|
hereof restructuring measures
Profit before taxes was also positive again. The development of the income tax position was weaker:
- Actual income taxes rose due to higher results for some foreign Group companies.
- The somewhat weaker deferred tax income resulted from lower temporary spreads at foreign Group companies.
The net profit (after taxes) also recovered noticeably and was positive.