Investor Relations - Group management report

Overview

++ Positive effects from the world economy’s noticeable recovery during the 2010 financial year ++ Rail freight transport and worldwide logistics post significant rates of increase ++ Favorable forecast for the 2011 financial year ++

Business performance

++ Revenues rise sharply by about 17 % to € 34.4 billion (11 % comparable basis) ++ Adjusted EBIT improves to € 1.9 billion ++ Inclusion of DB Arriva has considerable impact ++

Financial situation

++ Ratings confirmed in the year under review ++ Net financial debt rose because of Arriva acquisition ++ Gross capital expenditures again at high level ++

Sustainability

++ Sustainability is an important foundation for future viability ++ Further development of corporate culture gets underway ++ Climate protection program and “green” products are further developed ++

Additional information

++ Stuttgart 21 Project mediation talks completed ++ Partial conclusion of investigations of companies in freight forwarding industry ++ Overall conditions change for long-distance bus transport ++

Events after the balance sheet date

++ Sector-wide agreement in SPNV sector takes effect ++ Round of wage talks concluded with EVG ++ Additional compensatory services agreed for S-Bahn (metro) Berlin ++

Business and overall conditions

++ Successful takeover of the passenger transport company Arriva ++ Notable economic recovery seen in 2010 ++ Transport markets resume growth ++

Development of business units

++ Service restrictions hamper development of passenger transport business ++ Transport and Logistics division benefits from strong economic recovery ++ Infrastructure business units note substantially heavier demand from non-Group customers ++

Strategy

++ Economic and financial crisis successfully mastered ++ Vision and strategy confirmed ++ Customer and quality initiative started ++

Technology and procurement

++ Focus on securing efficiency of the integrated rail system ++ Master plan T gives new orientation to Rail Technology and Services Board division ++ Procurement volume rises significantly again ++

Risk report

++ Integrated risk management ensures transparency ++ Material risks in areas of market, production, technology and procurement market ++ Risk portfolio free of existence-threatening risks ++

Outlook

++ Economic growth expected to continue at slower pace ++ Revenues and profits anticipated to grow in 2011 financial year ++ Outlook remains clouded by uncertainty ++