• Recovery continues, but effects from the Covid-19 pandemic are still evident.

• Lower government support measures partially offset recovery effects.

UK Bus saw an increase in passengers following the elimination from Covid-19-related restrictions such as strict shutdowns at the beginning of 2021. The loss of tenders in London had a dampening effect.

Schedules have been adjusted to current service levels, reducing regional services.

The economic development has improved. Revenue growth outpaced the negative impact of declining Covid-19 government support and higher expenses, mainly due to exchange rate effects. Operating profit figures improved.

Income development was positive overall:

• Revenue development improved, mainly due to the recovery in demand as well as positive exchange rate effects.
• Other operating income declined significantly, mainly as a result of lower Covid-19 support measures due to the recovery in demand. Positive exchange rate effects, among others, had a dampening effect.

On the expense side, it was mainly negative exchange rate effects that led to an increase:

• Other operating expenses increased due to the reclassification of management fees for the centralization of depart­ments (offset in other operating income) and negative exchange rate effects.
• Depreciation increased due to effects from the revaluation of assets.
• The cost of materials increased mainly due to higher energy prices and negative exchange rate effects.

On the other hand, the decline in personnel expenses partially compensated for this:

• Personnel expenses fell slightly. Effects from a lower headcount and from the closure of company pension plans were almost completely offset by negative collective bargaining effects.

Capital expenditures increased significantly, mainly due to a project for a new depot and the increase in capital expenditures in health and safety as well as the revaluation of assets (IFRS 16).

The number of employees decreased noticeably as a result of the reduced volume produced and ongoing challenges related to sickness and operations.

• Positive development due to the ongoing Covid-19 recovery.

• Additional burdens due to higher energy prices.

• Development influenced by structural changes due to new contract for Chiltern Railways.

The performance development at UK Trains was mainly driven by the effects of the Covid-19 recovery process.

The economic development has improved. Positive effects due to the ongoing recovery process were only partially offset by lower government support and additional burdens. As a result, operating profit figures rose.

Income development was significantly better:

• Revenues increased due to higher ticket revenues driven by higher volumes as well as positive exchange rate effects. Lower government Covid-19 support measures partially offset this.
• Other operating income was virtually unchanged.

On the expense side, price and volume-related higher expenses as well as exchange rate effects led to additional burdens:

• The cost of materials increased significantly, mainly due to higher energy prices, increased volume-related expenses and negative exchange rate effects.
• Other operating expenses also rose considerably, predominantly due to higher infrastructure fees for rail transport and higher costs for rail replacement services. Excluding exchange rate effects, the increase was slightly lower.
• The increase in personnel expenses is mainly due to exchange rate effects. Adjusted for exchange rate effects, personnel expenses remained almost unchanged.

The decrease in depreciation partially compensated for this:

• Depreciation decreased significantly due to a change in accounting for leased assets at Chiltern Railways.

Capital expenditures fell to a low level, primarily due to the changes at Chiltern Railways regarding the new National Rail Contract.

The number of employees fell slightly.

• The recovery of demand continued, especially in the Netherlands and the Czech Republic.

• The effects of the Covid-19 pandemic have continued.

• Additional burdens due to higher energy prices.

Performance development in Mainland Europe was positive overall, driven by a recovery in demand:

• In rail transport, recovery effects led to an increase in demand, especially in Sweden and the Netherlands.
• In bus transport, the number of passengers and volume produced increased in all regions, mainly due to the Covid-19 pandemic recovery effects.

The economic development was positive, driven by a noticeable growth in income:

• The significant increase in revenues was mainly due to the continuing recovery in demand and higher concession fees due to general price adjustments in Sweden and Slovakia.
• Other operating income fell. A reduction in government Covid-19 support in the Netherlands was partly offset by higher releases of provisions in Portugal.

The expense side was significantly impacted by higher energy costs as well as recovery effects:

• The significant increase in the cost of materials was due in particular to higher fuel costs. In addition, more intensive maintenance also contributed to higher expenses.
• Other operating expenses also increased, mainly due to an increased number of temporary employees in Italy and one-off effects related to portfolio adjustments.
• Higher capital expenditures in the Netherlands in 2021 led to higher depreciation.
• Personnel expenses remained virtually unchanged.

The increase in capital expenditures also resulted from the completion of capital expenditure measures, particularly in Portugal and Slovakia.

The number of employees due to delays in rehiring temporary staff following the Covid-19 restrictions in some Eastern European markets, the impact of strategic deci­sions in non-core countries, and the cessation of transport contracts.