Interim Group management report
Overview
RECOVERY CONTINUES
Selected key figures € million | H1 2011 | H1 2010 | Change absolute | Change % |
| Passengers rail and bus* | 1,381 | 1,363 | + 18 | + 1,3 |
| Volume sold rail passenger transport (million pkm)* | 38,045 | 38,098 | - 53 | - 0.1 |
| Volume sold bus transport (million pkm)* | 4,720 | 4,776 | - 56 | - 1.2 |
| Volume sold rail freight transport (million tkm) | 56,784 | 52,588 | + 4,196 | + 8.0 |
| Train kilometers on track infrastructure (million train-path km) | 521.4 | 508.5 | + 12.9 | + 2.5 |
| Shipments in European land transport (thousand)** | 47,515 | 39,372 | + 8,143 | + 20.7 |
| Air freight volume (export) (thousand t)** | 583.2 | 586.8 | - 3.6 | - 0.6 |
| Ocean freight volume (export) (thousand TEU)** | 837.3 | 800.1 | + 37.2 | + 4.6 |
| Revenues | 18,876 | 16,102 | + 2,774 | + 17.2 |
| Revenues comparable | 17,280 | 16,102 | + 1,178 | + 7.3 |
| EBITDA adjusted | 2,559 | 2,197 | + 362 | + 16.5 |
| EBIT adjusted | 1,133 | 846 | + 287 | + 33.9 |
| Net profit | 648 | 392 | + 256 | + 65.3 |
| ROCE (%) | 7.2 | 5.9 | - | - |
| Net financial debt as of Jun 30, 2011 /Dec 31, 2010 | 17,290 | 16,939 | + 351 | + 2.1 |
| Gross capital expenditures | 2,689 | 2,502 | + 187 | + 7.5 |
| Net capital expenditures | 1,049 | 865 | + 184 | + 21.3 |
* Excluding Arriva.
** Preliminary figures.
During the first half of 2011 Deutsche Bahn Group (DB Group) was once again able to post significant increases in volume sold in certain segments and stayed on track for growth in an economic environment that remained dynamic. This applied in particular to rail freight transport as well as our worldwide transport and logistics activities, which continued to benefit from favorable global economic development. Development noted for our air freight activities in the first half of 2011 remained stable following the rapid growth rates posted in the previous year as this area of business recovered very quickly from the economic and financial crisis.
Our business units in passenger transport– excluding activities of Arriva – showed a generally stable performance. Gains were noted in the regional rail passenger transport while volume sold in long-distance transport contracted slightly in the first half of 2011 due to burdens generated by intensive construction work within the network, uncertainty among our customers due to the possibility of strikes, and the omission of one-time effects noted in the first half of 2010.
A slight increase in demand for train-path was seen in the infrastructure due to strong gains noted for freight transport.
Increased volume posted for rail freight transport and in the DB Schenker Logistics business unit were also reflected in a substantial increase in revenues.
Changes in the scope of consolidation also impacted on the income situation in the first half of 2011. Specifically, the inclusion of Arriva, a British passenger transport company, which was completely acquired at the end of August 2010, generated a significant contribution to revenues of about € 1.5 billion. Furthermore, following this acquisition, changes were made to the DB Group’s organizational structure which took effect as of January 1, 2011.
The overall development of profits was favorable in the period under review. As in the respective previous year’s period, development of DB Group was barely influenced by special items during the period under review. The adjusted profit figures and the adjusted profit and loss statement do not include special items for the period under review and the same year-ago period.
Due to the favorable economic development noted by the business units, in particular, net profit improved substantially.
We were able to notably increase our value management key figure, ROCE, in the period under review due to the substantially higher adjusted EBIT figure.
Overall development noted in the individual business units was favorable in the first half of 2011. Detailed information about the performance of the individual business units may be found in the chapter Business units.
As planned, we continued to move ahead with our Customer and Quality Initiative in the first half of 2011. Our Marketing, Engineering and Capex initiatives were also successful.
During the period under review capital expenditures rose and were driven by measures in the Capex initiative.
Additional funds from the economic stimulus packages effected the rail infrastructure.
As of June 30, 2011, net financial debt was higher than the figure posted on December 31, 2010 due to the first-time payment of a € 500 million dividend to the Federal Government by DB Group.
During the period under review DB Group once again benefited from very good access to the capital market and was able to obtain loans to refinance maturing financial debt at good conditions.
ASSESSMENT OF THE ECONOMIC SITUATION BY THE MANAGEMENT BOARD
Based on development noted during the period under review, the Management Board of Deutsche Bahn AG (DB AG) continues to view DB Group’s economic situation as positive.
During the period under review, DB Group reported increases in revenues, operating profit and ROCE, both on a comparable basis and after taking changes in the scope of consolidation into account.
Against the background of the favorable development noted in the first half of 2011, we anticipate that revenues will increase by about € 4 billion to substantially more than € 38 billion. The increase in revenues will be driven by organic growth and revenues generated by the acquisition of Arriva. This should also lead to a noticeable increase in profits (adjusted EBIT) to significantly more than € 2.0 billion. This means that our current expectations are better than those stated in the 2010 Annual Report.
We can confirm our forecast for ROCE, gross capital expenditures and net financial debt as disclosed in our 2010 Annual Report on page 135.
Last modified: 08.08.2011