• Performance increases through intermodal transport, in particular trans-Eurasian traffic.

• Additional burdens as a result of the war in Ukraine, increasing factor costs and lower Federal grants.

• Operating profit development still under pressure.

¹⁾ Previous year adjusted due to changes in the presentation of Eurasian transport (from the Eastern Europe region to the Central Europe region).

The development of the quantity of freight carried and volume sold in Central Europe was influenced considerably by the economic recovery and first-time inclusion of the DB Cargo Schweiz performance data in the first half of 2022. The positive business development of intermodal transport, in particular on the trans-Eurasian corridor at the start of the year was largely offset by the dampening effects from restrictions in track infrastructure caused by construction and disruptions, operational bottlenecks and effects from the war in Ukraine (including the suspension of transports to Russia). Overall, the volume was slightly higher than before the Covid-19 pandemic.

Economic development remains very challenging due to the operational situation. The operating profit figures deteriorated significantly:

• Revenues rose, largely as a result of price increases. The slightly positive performance development had a supporting effect.
• Other operating income was at the level of the first half of 2021. Decreases due to a reduced volume of subsidies from the facility price system and the expiration of subsidies for the conversion of freight cars to whisper brakes (“brake shoes”) could be compensated by non-periodic reimbursement from the dissolution of the “noise bonus pot” due to the completed freight car conversion.

On the expense side, there were additional burdens driven by the cost of materials:

• The cost of materials increased in particular due to increased purchasing of transport services. For train paths and energy expenses, a higher price level in connection with a slight increase in quantity led to additional burdens.
• Personnel expenses increased mainly as a result of collective bargaining agreements, with a slight increase in the number of operating employees.
• The increase in other operating expenses was mainly due to an increase in freight car leasing, higher compensation payments to customers, and higher IT costs.
• Depreciation increased in part as a result of additional leasing (IFRS 16) of locomotives and freight cars.

The decrease in capital expenditures resulted mainly from delays in the procurement of freight cars.

The number of employees was at the same level as of June 30, 2021. The addition and qualification initiative for operative personnel was continued.

• Difficult market environment in the United Kingdom and France, Spain is recovering.

• Burdens as a result of increased energy prices – However, one-off effects in the United Kingdom and France have an offsetting positive effect.

Performance development in Western Europe was differentiated in the first half of 2022:

• At DB Cargo France, portfolio adjustments in particular (replacing heavy automotive transport with lighter intermodal transport) led to lower volume.
• Reductions in volume had a negative effect at DB Cargo UK for building materials transport in particular.
• In Spain, an upturn in the pivotal automotive sector led to higher volumes.

Economic development continued to be challenging. The operating profit figures declined due to additional costs.
Income grew:

• Higher volumes in Spain, higher prices in the United Kingdom and positive exchange rate effects led to an increase in revenues.
• The increase in other operating income resulted in particular from an increase in state grants in France to support single-wagon transport and from increased income from the disposal of locomotives, freight cars and real estate at DB Cargo UK.

However, the increase in expenses was more pronounced, driven by the cost of materials:

• Cost of materials increased mainly as a result of higher energy costs, higher maintenance expenses in the United Kingdom and exchange rate effects.
• Personnel expenses increased as a result of higher pension costs and a higher average number of employees at DB Cargo UK. Adjusted for exchange rate effects, the increase was less significant.
• Depreciation increased as a result of leasing activities in the United Kingdom and as a result of currency exchange rates.
• The slight increase in other operating expenses was caused by currency exchange rate effects. Adjusted for exchange rate effects, they were at the level of the first half of 2021. Effects from a release of provisions in the United Kingdom were almost completely offset by losses from asset disposals.

Capital expenditures decreased. In the first half of 2021, there was a change of accounting method at DB Cargo UK following the SAP migration from recording net fixed assets to record­ing gross fixed assets, resulting in an apparent increase.

The number of employees was at the same level as of June 30, 2021.

• New transport and expansion of available offers, in particular in Poland and the Czech Republic.

• Burdens resulting from the war in Ukraine and increased factor costs, especially for energy.

¹⁾ Previous year adjusted due to changes in the presentation of Eurasian transport (from the Eastern Europe region to the Central Europe region).

The performance development in Eastern Europe was positive, driven by new transport (inland transport at DB Cargo Polska and market entry in Austria by DB Cargo Czechia) and the expansion of existing transports (chemistry, coke and automotive transport by DB Cargo Romania and new production concepts at DB Cargo Hungaria), and was above the pre-Covid-19 level.

The economic trend was encouraging: the operating profit figures improved significantly. This was driven by a growth in income:

• Revenues increased significantly, in particular as a result of demand. Price measures also helped. Adjusted for exchange rate effects, the increase was even more pronounced.
• Other operating income increased, partly as a result of asset sales in Poland and insurance reimbursements in Romania.

On the expense side, there was a significant but disproportionately low increase due to performance.

• Cost of materials increased significantly, largely as a result of the growth in demand, an increase in maintenance and purchased transport services, and rising energy costs. Exchange rate effects had a partially compensating effect.
• Personnel expenses increased, in particular in Poland and Czechia as a result of collective bargaining agreements. Positive exchange rate effects also had a partially compensating effect here.
• Other operating expenses also increased due to volume as a result of additional leases and purchased services.
• Depreciation increased as a result of higher locomotive and freight car maintenance services (overhauls) being eligible for capitalization.

Gross capital expenditures increased considerably due to procurement of freight cars and locomotives. Net capital expenditures remained more or less unchanged due to funding received from the EU.

The number of employees was at the level as of June 30, 2021.

• Road and special transport as a growth driver.

• Burden on Eurasian transport due to the war in Ukraine.

A significant driver of positive revenue development was the increasing volume of road and special transport in Germany which grew by approximately 12%. Further significant growth was recorded in the smallest area of the intermodal business in Italy (+20%). The rail business experienced stable performance. The Eurasia business recorded significant declines of approximately 24% as a result of the war in Ukraine.

The improved revenue development is reflected accordingly in EBIT and EBITDA.

Gross capital expenditures increased. This was a result of the long-term lease extension for a commercial building.