Integrated Interim Report 2019 – Germany needs a strong rail system

Notes to the consolidated financial statements

Changes in DB Group

Movements in the group of fully consolidated companies of DB Group are detailed in the following:

(Number)

Germany
Jun 30,

2019

Interna-
tional

Jun 30,

2019

Total

Jun 30,
2019

Total
Jun 30,
2018

Total
Dec 31,
2018

FULLY CONSOLIDATED
SUBSIDIARIES

     

As of Jan 1

125

430

555

578

578

Additions

0

4

4

3

9

Additions due to changes
in type of inclusion

0

0

0

0

3

Disposals

1

8

9

5

35

Disposals due to changes
in type of inclusion

1

0

1

0

0

Total 

123

426

549

576

555

Additions of companies and parts of companies

The additions of companies to the scope of consolidation consist exclusively of newly established companies.

Purchase price allocation VT-Arriva (acquired in 2018)

The net assets of VT-ARRIVA Személyszállító es Szolgáltató Kft. (VTArriva), Székesfehérvár/Hungary which was acquired in the previous year (provisional purchase price allocation as of December 31, 2018), including the adjustments of assets and liabilities in accordance with IFRS 3, are shown in the following after the completed purchase price allocation:

(€ million) 

Carrying 
amount

Adjustment

Fair
value

Property, plant and equipment

76

–26

50

Intangiable assets

0

101

101

Available-for-sale financial assets

0

0

Inventories

1

1

Trade receivables

17

17

Other receivables and other assets

3

3

Cash and cash equivalents

17

17

Deferred tax assets

0

2

2

Assets

114

77

191

Financial debt 

55

55

Liabilities

12

12

Deferred tax liabilities

4

9

13

Liabilities

71

9

80

     thereof recognized contingent liabilities
     in accordance with IFRS3

Non-controlling interests

Net assets acquired

43

68

111

Purchase price paid in cash
and cash equivalents

10

10

Cash and cash equivalents acquired

17

17

Inflow of cash and cash equivalents
due to transactions

7

7

The definitive purchase price allocation has resulted in the following adjustments in relation to the assets and liabilities:

(€ million)

Adjustment

Property, plant and equipment

–26

Intangible assets

13

Deferred tax assets

2

Deferred tax liabilities

1

Total 

–12

This has resulted in the following calculation of goodwill:

(€ million)

VT-Arriva

PURCHASE PRICE

 

Payments made

10

  Outstanding purchase price payments

52

Outstanding purchase price payments

62

  Fair value of the amount of equity held before the acquisition

61

  Fair value of net assets acquired

111

Goodwill

12

Disposals of companies and parts of companies

The disposals from the scope of consolidation relate to eight liquidations and one sale. The sale has not resulted in an inflow of cash.

Effects on the consolidated statement of income

In total, the impact of the changes in the scope of consolidation which have occurred compared with the first half of 2018 in relation to the consolidated statement of income is not material, and is shown in the following overview:

Jan 1 to Jun 30, 2019
(€ million)

DB Group

Thereof 
due to additions
to scope of
consolidation

Amounts
due to disposials
from scope of
consolidation

Revenues

22,014

43

Inventory changes and internally
produced and capitalized assets

1,490

Overall performance

23,504

43

0

Other operating income 

1,118

1

Cost of material 

–10,877

–13

Personnel expenses 

–8,998

–14

2

Depreciation and impairments

–1,809

–13

Other operating expenses

–2,309

–2

Operating profit (EBIT)

629

2

2

Results from investments accounted
for using the equity method

–4

Net interest income 

–345

–1

Other financial result

–3

–3

1

Financial result

–352

–4

1

Profit before taxes on income

277

–2

3

Taxes on income

–72

–1

Net profit

205

–3

3

The revenues attributable to changes in the scope of consolidation are as follows:

Jan 1 to Dec 31, 2019
(€ million)

Revenues due to

Additions
to scope of
consolidation

Disposials 
from scope of
consolidation

VT-Arriva 1)

40

Etihad Rail DB Operations LLC 1)
Abu Dhabi/United Arab Emirates

3

Total

43

1) Acquired during the previous year.