2017 Integrated Report – Departure into a new era

Domination and profit and loss transfer agreements 

Profit transfers and losses offset do not constitute business relationships. On the contrary, the profit and loss transfer agreement stipulates that the amount of profit distributed or the sum required to offset losses is not reset every year but is calculated automatically. The flow of capital is based on the shareholder’s right to profits or obligation to compensate any losses. Notwithstanding this, DB Group ensures that Group companies have sufficient capital stock despite the obligation to offset potential losses generated by other companies within the Group.

Capital providers are only willing to provide capital if amortization and returns are guaranteed. A purely debt-based financing model is not commercially viable, as it is associated with high risks. Profits are essential for maintaining DB Group’s capital expenditure capacity. Profits generated are either retained or distributed to the Federal Government as the sole shareholder. The share of profit retained in the company increases the Group’s capital expenditure and borrowing capacity. 

Cash flows between
DBAG and DB
infrastructure companies in Mio.

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Total

FROMPROFITANDLOSSTRANSFERAGREEMENT

DB Netz AG

+790

+181

+548

+324

+183

+260

+212

146

338

768

+44

307

197

66

217

81

280

390

248

DB Station&Service AG

+70

0

+251

37

55

69

52

90

190

150

141

155

160

169

188

203

176

186

1,700

DB Energie GmbH

34

2

29

43

47

44

111

106

18

91

38

+38

62

+37

39

51

35

59

734

From capital increases by DBAG

DB Netz AG

+600

+620

+5

+1,000

+2,125

DB Station&Service AG

+286

+28

+111

+14

+439

(+) Inflow of capital to subsidiary
(–) Outflow of capital to DBAG