2017 Integrated Report – Departure into a new era

Development in the year under review

  • Higher revenues from price adjustments and higher volume produced by non-Group customers.
  • Increase in personnel expenses due to collective wage increases and a greater number of employees.
  • Maintenance expenses increased.

DB Netze Track

2017

2016

Change

 

2015

Absolute

%

Punctuality DB Group (rail) in Germany (%)

93.9

94.3

93.6

Punctuality (rail) in Germany 1) (%)

93.6

93.9

93.7

Customer satisfaction (SI)

67

69

68

Length of line operated (km)

33,348

33,241

+107

+0.3

33,193

Volume produced on track infrastructure (million train-path km)

1,072

1,066

+ 6

+ 0.6

1,053

thereof non-Group railways

331.3

321.9

+ 9.4

+ 2.9

289.9

share of non-Group railways (%)

30.9

30.2

27.5

Total revenues (€ million)

5,364

5,228

+ 136

+ 2.6

5,015

External revenues (€ million)

1,522

1,408

+ 114

+ 8.1

1,217

share of total revenues (%)

28.4

26.9

24.3

EBITDA adjusted (€ million)

1,484

1,484

1,491

EBIT adjusted (€ million)

687

561

+ 126

+ 22.5

568

Operating income after interest (€ million)

442

311

+ 131

+ 42.1

296

ROCE (%)

3.8

3.1

3.1

Capital employed as of Dec 31 (€ million)

17,866

17,821

+ 45

+ 0.3

18,082

Net financial debt as of Dec 31 (€ million)

9,386

10,396

– 1,010

– 9.7

10,696

Redemption coverage (%)

14.0

12.7

12.3

Gross capital expenditures (€ million)

6,601

6,226

+ 375

+ 6.0

5,823

Net capital expenditures (€ million)

660

688

– 28

– 4.1

914

Employees as of Dec 31 (FTE)

45,375

43,974

+ 1,401

+ 3.2

43,161

Employee satisfaction (SI)

3.7

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

99.1

99.0

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

18.8

18.6

17.7

Noise-remediated track kilometers in total (rounded) as of Dec 31 (km)

1,700

1,600

+100

+6.3

1,500

1) Non-Group and DB Group TOCs.

Punctuality of DB rail transport has declined slightly. The positive effects of Railway of the Future were weakened by the operating restrictions. #Punctuality

Customer satisfaction also deteriorated slightly. To assess this, about 240 customers are asked each year about their satisfaction with all of the services offered to them. Customers were particularly critical on infrastructure availability and construction works. The line closure at Rastatt. had an additional negative effect.

By contrast, performance development was slightly positive: train kilometers on track infrastructure increased due to higher demand from non-Group customers, especially from freight transport, but also from passenger transport. Demand from intra-Group customers for long-distance passenger transport and freight transport declined, which had a dampening effect.

However, economic performance was modest overall. The positive income trend was offset by the increase in personnel and maintenance expenses, leaving the adjusted EBITDA at the previous yearʼs level. Adjusted EBIT showed positive development due to lower depreciation.

  • Total revenues increased, with the negative effects of the operating restrictions offset by price adjustments and increases in demand.
  • Other operating income increased (+ 2.4%), mainly due to higher income from property sales and posting of fixed assets, as well as a rise in revenue from the sale
    of scrap. This was counteracted by lower income from government subsidies and the rehabilitation of existing ecological damage.
  • Cost of materials increased (+ 3.3%), driven primarily by higher maintenance expenses for quality-related measures and the remediation of severe weather damage. This was counteracted by lower expenses for energy, amongst other factors.
  • The increase in personnel expenses (+ 6.5%) was primarily attributable to wage adjustments and the higher number of employees.
  • The decline in other operating expenses (– 0.6%) is partly due to lower expenses from the disposal of property, plant and equipment. This was counteracted by higher expenses for IT services, grants for third-party facilities and leases, amongst others.
  • Depreciation (– 13.7%) declined due to a lower level of property, plant and equipment and due to lower un­­planned impairment charges and higher write-ups.

Operating income after interest also improved in the year under review, further supported by lower interest expenses, which led to an improvement in net operating interest.

The positive profit development driven by an almost un­­­changed capital employed resulted in an increase in the ROCE.

Net financial debt fell, primarily due to the capital increase at DB Netz AG. This also slightly improved the redemption coverage.The volume of capital expenditures for new construction and expansion projects and for the existing network in­­creased. Net capital expenditures fell as a result of a marked increase in investment grants in accordance with the LuFV II.

The number of employees rose, mainly due to increases to cover existing and future staffing requirements, especially in the maintenance and construction project areas.

Employee satisfaction is measured every two years. In the year under review, the focus was on follow-up processes. The follow-up workshop implementation rate for the 2016 employee survey was again very high.

The share of women rose slightly during the year under review.

Within the framework of the noise remediation program. we also carried out noise remediation measures on additional lines in the year under review.