2017 Integrated Report – Departure into a new era

Future direction of DB Group

Future business policy

We want to assert our market positions in the 2018 financial year and stimulate further organic growth in our business units. We have defined the strategic directions for the coming years in our strategy DB2020+, which we consistently pursue. In the 2018 financial year, we will continue implementing the second phase of Railway of the Future. In addition to the weak development in the year under review, our focus in this process is in particular on punctuality. #Punctuality

Future strategic focus

Our strategy DB2020+, which is based on a sustainability approach, continues to be the compass for DB Groupʼs strategic focus. The focus is on addressing the three main areas of action – culture of quality, digital expertise and performance capability, which were specifically derived from the challenges of the integrated rail system. Our objective remains to improve the competitiveness of the integrated rail system, to continue to grow internationally and to ensure the future fitness of DB Group particularly by employing digital technologies.

Future sales markets

Our opportunities for growth in the German passenger transport market are limited due to the high level of competition and restrictions imposed by antitrust laws. As a result, we are primarily focused on defending our strong market position and improving the competitive position of the railways in intermodal competition. Over the medium term, we foresee a shift to demand-driven road transport in the German passenger transport market as new data-based business models are established. Autonomous driving, for example, will lead to ever fewer people having to own their own car. At the same time, autonomous transport on the road could potentially make certain areas of public transport inde­­pendent of stops/stations and schedules, and thus en­­hance flexibility. Our growth potential in the area of passenger transport services lies in countries outside of Germany and in cross-border long-distance rail passenger transport services.

In the area of rail freight transport, our focus continues to be on the European market. We are well positioned in all of the central European corridors and can offer service connections to locations as far afield as China.

We also do not expect significant changes in the freight forwarding and logistics division in 2018. DB Schenker is already very well represented in all key markets and regions.