2017 Integrated Report – Departure into a new era

Development in the year under review

  • Positive development of demand from non-Group
    customers in stationary energy, counteracted by decline
    in Group-internal demand for traction current
    .
  • Revenues up due to rise in sales of stationary energy.
  • Development of operating profit weakened by EEG arrears and elimination of one-off effects.

DB Netze Energy

2017

2016

Change

 2015

absolute

%

Supply reliability (%)

99.99 1) 

99.99 1)

99.99

Customer satisfaction 2) (SI)

80

78

Customer satisfaction traction current and diesel 2) (SI)

80

78

Customer satisfaction electricity and gas plus (Group customers) 2) (SI)

79

77

Customer satisfaction electricity and gas plus (non-Group customers) 2) (SI)

82

83

Traction current (16.7 Hz and direct current) (GWh)

8,284

8,902

– 618

– 6.9

8,644

Traction current pass-through (16.7 Hz) (GWh)

1,906

1,419

+487

+34.3

1,181

Stationary energy (50 Hz and 16.7 Hz) (GWh)

19,331

17,589

+ 1,742

+ 9.9

14,865

Diesel fuel (million l)

436.1

433.7

+ 2.4

+ 0.6

427.1

Total revenues (€ million)

2,794

2,779

+ 15

+ 0.5

2,812

External revenues (€ million)

1,301

1,194

+ 107

+ 9.0

1,128

EBITDA adjusted (€ million)

141

197

– 56

– 28.4

133

EBIT adjusted (€ million)

72

126

– 54

– 42.9

66

ROCE (%)

6.7

14.3

7.0

Capital employed as of Dec 31 (€ million)

1,081

878

+ 203

+ 23.1

937

Net financial debt as of Dec 31 (€ million)

630

390

+ 240

+ 61.5

254

Redemption coverage (%)

17.7

32.9

27.9

Gross capital expenditures (€ million)

177

174

+ 3

+ 1.7

167

Net capital expenditures (€ million)

53

52

+ 1

+ 1.9

68

Employees as of Dec 31 (FTE)

1,721

1,736

– 15

– 0.9

1,726

Employee satisfaction (SI)

3.8

Employee satisfaction – follow-up workshop implementation rate (%)

100

100

Share of women in Germany as of Dec 31 (%)

13.5

13.3

13.2

Share of renewable energies in the DB traction current mix (%)

44.0 3)

42.0 4)

42.0 4)

1) Preliminary figures (not rounded).
2) No survey conducted in 2017.
3) Preliminary figure.
4) Consolidated share for non-Group and DB Group TOCs.

Supply reliability remained at its previous high level. 

We survey about 230 customers each year regarding customer satisfaction. The survey cycle was moved from the fourth to the first quarter during the year under review and there was therefore no measurement of customer satisfaction in the year under review.

Development was uneven in volume terms:

  • Sales of traction current declined. In addition to operating restrictions, the negative effects of customers switching over to pass-through also played a role here.
  • The traction current volume passed through on behalf of non-Group customers increased due to an increase in demand from existing customers and the switchover from full electricity supply to pass-through.
  • In stationary energy, the sales volume for non-Group customers continued to increase substantially. This was attributable both to an expansion of business with existing industrial customers and effects from the portfolio optimization segment.
  • Demand for diesel fuels was slightly up. Decreases in demand from Group customers due to weather damage and line closures were counteracted by an increase in demand from existing and new non-Group customers.

Economic performance in the year under review was below that of the previous year, which had benefited from positive one-off effects. Higher income was unable to offset the increase in expenses, which was driven by higher energy expenses; the operating profit figures deteriorated as a result. 

  • Revenues were slightly up on the previous year, helped by development of non-Group sales of stationary energy and pass-through as well as increases in revenue from mineral oil products driven by market prices. Internal revenues declined due to the drop in demand for traction current and the reduction in selling prices due to better purchasing conditions.
  • Other operating income rose (+ 5.8%) because of network operating services for the S-Bahn (metro) Berlin and the provision of facilities for Group customers.
  • Cost of materials increased (+ 3.1%) because of the development in demand in the stationary energy business and because of EEG arrears for previous years due to changes in legislation (EEG Amendment, 2017). Higher expenses on mineral oil products were due to developments in prices on the primary energy markets. This was counteracted by an improvement in purchasing conditions for traction current. Development was also dampened by the absence of one-off effects from the final settlement on the joint venture power plant, which had the effect of reducing expenses in the previous year.
  • Personnel expenses (+ 3.4%) increased as a result of collective bargaining agreements.
  • Other operating expenses (– 1.3%) remained virtually unchanged.
  • The decrease in depreciation (– 2.8%) resulted from the absence of unscheduled depreciation and reductions in the useful life of property, plant and equipment in the previous year.

The decrease in operating profit, accompanied by an in­­crease in capital employed, resulted in a weakening of the ROCE. The increase in capital employed is due in particular to the increase in inventory and higher trade receivables from non-­­Group customers as a result of balance-sheet-date effects.

Redemption coverage decreased significantly due to a decline in operating cash flow accompanied by a significant increase in net financial debt. This significant increase in net financial debt was driven by an increase in capital employed.

Capital expenditure activities were roughly at the same level as the previous year. The slight increase in gross capital expenditures reflects the higher capital expenditures – driven by higher investment grants from LuFV II – in the renovation of traction current lines, traction current switch­­ing systems and centralized converters.

The number of employees was virtually unchanged.

Employee satisfaction is measured every two years. In the year under review, the focus was on follow-up processes. All planned follow-up workshops on the employee survey were once again implemented.

The share of women again increased slightly.

The share of renewable energies in the DB traction current mix. continued to expand.