DB Group has published its integrated report today, showing a comprehensive picture of the development of DB Group in the 2021 financial year, which continued to be noticeably influenced by the effects of the Covid-19 pandemic.
For the first time, the Integrated Report takes into account the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). DB Group thus takes account of the particular importance of the issue of climate protection.
The development of DB Group in 2021 shows a noticeable recovery. Double-digit percentage growth in revenues, exceeding the level achieved in 2019, the year before the pandemic: Revenues rose 18.4% year on year, to €47.3bn. The main revenue driver was DB Schenker. Revenues also increased in the Integrated Rail System (mainly passenger transport and rail infrastructure in Germany as well as rail freight transport) with DB Cargo also posting further growth.
Adjusted operating profit (EBIT adjusted) still remained negative at €-1.6bn. Compared to 2020 the loss was considerably lower (2020: €-2.9bn). An agreement with the Federal Government means that DB Group will cover half of the pandemic-related losses in its core business itself by 2024. In 2021, DB Group saved more than €1bn on general, administrative and personnel expenses.
DB Schenker saw the biggest uptrend. It generated the highest EBIT in its history, €1.2bn, which stabilised the DB Group’s financial position. DB Schenker performed well in volatile times and ensured stable supply chains worldwide. It was a successful year for LSPs across the world. DB Arriva significantly reduced its operating loss.
Net loss for the year, including extraordinary items, interest and taxes, recovered even more significantly, by nearly €5bn to €-900m (2020: €-5.7bn). The train-path price support related to Covid-19 from the Federal Government implemented in 2021 and the absence of the effect of the impairment loss on investments recognised in the previous year also had a positive impact here.
It had more passengers on its long distance trains in 2021 than in 2020. About 82m passengers took DB’s long distance trains in 2021 (2020: 81 million). The 2020 figure includes two pre-pandemic months at the beginning of 2020. On a comparable basis, roughly 30% more people took DB’s long distance trains between March and December 2021 than in the same period in 2020.
DB Arriva, the DB Group’s local transport operator in Europe, transported nearly 11% more passengers in 2021.
Demand for rail freight transport rose again. DB Cargo increased its freight carried by 6.3% and its volume sold by 7.9%.
Train km on track infrastructure rose by about 4% to 1.1bn train-path km.
DB Group increased its capital expenditures despite the pandemic – for more transport by rail, better offers for customers and climate-friendly growth. Gross capital expenditures rose by 6.8% to about €15.4bn last year. Net capital expenditures were up 7.7% to about €6.3bn. Around 93% of gross capital expenditures are invested in the core business rail in Germany (Integrated Rail System). At €29.1bn, net financial debt as of December 31, 2021 was slightly lower than at the end of 2020, despite the high level of capital expenditures.
In 2022, DB Group expects to generate an operating profit and to increase its revenues to over €48bn. There is of course a great deal of uncertainty associated with any type of forecast in light of the unforeseeable impact of the war in Ukraine and other developments.
Source: DB Schenker
