2017 Integrated Report – Departure into a new era

Development in the year under review

  • Positive market and competitive environment.
  • Positive effects from the introduction of free WiFi, including in second class.
  • Quality improvements – especially as a result of the use of new vehicles.
  • Elimination of night travel.
  • Impaired by rail operation restrictions.

DB Long-Distance

2017

2016

Change

 


2015

absolute

%

Punctuality (rail) (%)

78.5

78.9

74.4

Rate of people making connections
(long distance transport/long-distance transport) (%)

85.8

85.9

86.1

Customer satisfaction (SI)

77

77

75

Passengers (rail) (million)

142.2

139.0

+3.2

+2.3

131.9

Passengers (long-distance bus) (million)

0.7

0.8

–0.1

–12.5

0.8

Volume sold (rail) (million pkm)

40,548

39,516

+1,032

+2.6

36,975

Volume sold (long-distance bus) (million pkm)

176.6

224.1

–47.5

–21.2

218.0

Volume produced (million train-path km)

140.5

144.1

–3.6

–2.5

138.4

Load factor (%)

55.5

52.9

51.8

Total revenues (€ million)

4,347

4,159

+188

+4.5

4,053

External revenues (€ million)

4,193

4,012

+181

+4.5

3,903

EBITDA adjusted (€ million)

611

419

+192

+45.8

438

EBIT adjusted (€ million)

381

173

+208

+120

165

Gross capital expenditures (€ million)

1,060

416

+644

+155

673

Employees as of Dec 31 (FTE)

15,993

16,326

–333

–2.0

16,339

Employee satisfaction (SI)

3.5

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

99.5

95.9

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

27.1

27.1

26.6

Specific final energy consumption compared to 2006 (based on pkm) (%)

–26.7

–22.9

–24.3

Punctuality fell slightly compared to the previous year’s level. At the beginning of the year under review, punctuality was well above 81% for several months. The reason for the slight decline in punctuality for the full-year was the development in the second half of 2017. Due to restrictions in rail operations and several technical issues and difficulties when the timetable changed in December, punctuality from October to December was well below the annual average.

As a result of the decrease in punctuality, the rate of people successfully making long-distance transport connections also declined slightly. #PUNCTUALITY

Customer satisfaction in the year under review was at the same level as in the previous year. To assess customer satisfaction, 15,300 customers are asked each year in six waves about their satisfaction with their latest journey. The positive developments resulting from the implementation of measures in six bundles (WiFi and cell phone reception, cleanliness of seats and restrooms, temperature, onboard railway staff, price perception and IC 1) were largely offset by the punctuality developments.

Performance development in rail transport was mainly positive.

  • The number of passengers and volume sold increased. Measures to promote services and the introduction of free WiFi, including in second class, were particularly strong development drivers. Market-driven stimuli were also positive. On the other hand, the restrictions in rail operations and the discontinuation of night and car train services in the previous year had a negative impact.
  • The decline in volume produced resulted from the elimination of services (Thalys, car and night trains). An increase in construction activity in the network also had a negative effect.
  • As the number of passengers increased, the load factor rose.

In bus transport, supply adjustments as well as loss of performance on individual lines led to a decline in the number of passengers and volume sold.

Economic development was pleasing; adjusted EBIT and EBITDA improved in particular due to a significant increase in income with a simultaneous decrease in expenses.

  • Revenues were better due to price and performance effects. Supportive effects also resulted from a less intense competitive environment.
  • The increase in other operating income (+7.4%) can essentially be attributed to the sale of vehicles and the reimbursement of nuclear fuel tax. Compensation and settlement payments for delayed deliveries of IC 2 and ICE 3 vehicles received in the previous year had an opposite effect.
  • The decrease in cost of materials (2.2%) was mainly driven by lower expenses for energy, commissions, maintenance and the discontinuation of overnight transport services.
  • The higher personnel expenses (+ 2.0%) resulted mainly from collective bargaining agreement wage increases.
  • Other operating expenses (+9.3%) mainly increased due to higher expenses for advertising, IT and travel support.
  • Depreciation (6.5%) decreased, partly because some ICE 1 and ICE 3 trains reached the end of their useful lives for accounting purposes. Procurements of ICE 3 and
    IC 2 trains countered this impact.

Capital expenditure activity was at a significantly higher level and was characterized by vehicle procurements (ICE 3 and ICE 4) as well as capital expenditures on the new ICE facility in cologne.

The number of employees as of December 31, 2017 declined slightly as a result of the adjustment to the night services.

Employee satisfaction is measured every two years. In the year under review, the focus was on follow-up processes to the 2016 survey. The completion rate of the follow-up workshops as part of the 2016 employee survey was once again at a very high level.

The share of women remained stable in the year under review.

The specific final energy consumption in traction continued to decline compared to 2016. The main driver of this improvement was the increased load factor. At the same time, we were able to further improve the energy efficiency of journeys. The constant improvement in the ENERGY-EFFICIENT DRIVING STYLE OF OUR LOCOMOTIVE DRIVERSNO. 08 was a decisive factor. A new feature was the “Triathlon” competition, which was held nationwide and rewarded energy efficiency and punctuality. Increasingly fuel-efficient new vehicles such as the IC 2 also had a positive effect.