Development in the first half of 2022

• Noticeable recovery in demand continues – return to pre-Covid-19 level since May.
• Punctuality impaired by renewed increase in volume produced and construction-related capacity restrictions.

Punctuality was significantly worse. The main reasons for this were capacity restrictions due to construction work alongside a simultaneous increase in volume produced, increasing infrastructure disruptions and secondary delays, especially in the highly utilized core lines. In addition, a weather-related slump in February had a negative impact on punctuality.

Customer satisfaction fell significantly in the first half of 2022. Punctuality and the successful connection rate have been heavily impaired and represent the biggest challenge. In addition, the significant rise in passenger numbers is having an increasing impact on capacity utilization and customer satisfaction.

The positive trend from the previous year has continued, performance development has recovered impressively, exceeding the pre-Covid-19 level since May:

• More than anything else, the ongoing easing of measures to contain the Covid-19 pandemic has led to a significant increase in passenger numbers and volume sold, particularly among private customers.
• Volume produced also increased. Positive effects from fewer Covid-19 restrictions and the expansion of available offers outweighed the negative effects from construction activities on the network.
• Capacity utilization increased noticeably again as a result of the increased number of passengers.

Economic development improved significantly, but remains challenging overall. Operating profit figures improved significantly, driven by a disproportionate increase in income compared to expenses. Income rose sharply:

• The recovery in demand led to a very significant rise in revenues.
• Other operating income (+122%/€ +175 million) also increased significantly, in particular due to train-path price reimbursements by the Federal Government to partially compensate for losses in connection with the Covid-19 pandemic (previous year, payment was only made in the second half of 2021). This was partly held back mainly by the loss of a one-off effect in the first half of 2021 (insurance benefits for damages in previous years).

Expenses increased, largely as a result of higher cost of materials due to price and volume increases and increased personnel costs.

• The increase in the cost of materials (+11.1%/€ +147 million) resulted mainly from higher infrastructure and energy expenses due to volume factors. A price effect also had a negative impact on infrastructure expenses. Additional expense increases resulted from the increased use of goods in on-board catering and higher expenses for commissions, vehicle cleaning and cross-border transports, due mainly to the recovery in performance. The weak operating quality also led to additional expenses in the customer service area.
• The increase in other operating expenses (+30.4%/€ +79 million) resulted, among other things, from increased rental expenses in connection with cross-border transport services (resumption after Covid-19-related restrictions) and for office buildings. In addition, more intensive advertising activities to regain customers, the implementation of IT projects and positive performance development increased expenses.
• Depreciation (+20.7%/€ +35 million) also increased, due primarily to the addition of ICE 4 trains and the redesign of ICE 1 and ICE 3 trains. Partially counteracting effects resulted from ICE and Intercity trains reaching the end of their useful lives.
• The higher personnel expenses (+4.0%/€ +24 million) resulted mainly from wage increases.

Capital expenditure activities rose to a very high level, result­ing primarily from continued vehicle projects.

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