Development in the year under review

• Slight decline in volume produced leads to almost stable revenue development.
• Delays in vehicle deliveries require further replacement concepts.
• Profit was burdened by an increase in expenses with almost stable revenues.

Punctuality in rail transport was slightly increased. In bus transport, it was close to the previous year’s level.

Customer satisfaction in rail transport developed more or less steadily and was able to halt the downward trend of previous years. To assess customer satisfaction, about 25,000 customers (rail) and 1,500 customers (bus) are asked each year about their satisfaction in two waves. Customer satisfaction in bus transport declined slightly. The reasons for this are local challenges for individual companies, for example during the periodic conversion of the schedule or the conversion of a station in the course of the year.

Performance development was differentiated:

• In rail transport, performance losses marked the develop­ment of volume sold and volume produced. The number of passengers improved.
• Bus transport showed a consistently declining performance development.

The economic development of DB Regional is particularly affected by the development of the higher-­­revenue and higher-­­­performance rail line of business (share of revenues: 88%). The adjusted EBIT was exclusively generated in the rail line of business. Overall, the development in the year under review was challenging. The operating profit figures declined.

• Revenues were close to the previous year’s level, as positive effects from higher concession fees (for example due to contractually agreed adjustments for higher costs) were completely offset by declines resulting from performance losses in rail and bus transport.
• Other operating income (+10.4%/€ +37 million) increased mainly due to higher income from vehicle sales.

There were noticeable additional charges on the expenses side:

• The cost of materials (+0.7%/€ +39 million) was driven in particular by higher expenses for maintenance services.
• Personnel expenses (+3.8%/€ +77 million) rose as a result of collective bargaining agreements and the higher number of employees.
• Other operating expenses (–4.6%/€ –33 million) decreased mainly as a result of lower additions to provision.
• Depreciation (+2.2%/€ +14 million) increased mainly because of capital expenditures.

Capital expenditure activity increased slightly. In particular, capital expenditures were made in the procurement of multiple units for the West Ring traffic and in electric multiple units of the 1440 series for the Rechter Rhein tender, in diesel multiple units of the 632/633 series for the Sauerland Network and the Dreiech tender, as well as in the redesign of the 423 series of the Munich S-­­Bahn (metro).

76% of employees are employed in the rail line of business, with 24% in the bus line of business. The number of employees increased slightly in both lines of business.

Employee satisfaction is measured every two years. In the year under review, the focus was on the follow-­­up processes to the 2018 survey. The follow-­­up workshop implementation rate as part of the employee survey was once again at a very high level.

The share of women rose slightly in the year under review.

The specificfinal energy consumption in rail transport compared to 2006 (based on pkm) has decreased further. This was mainly due to a reduction in traction energy consumption (traction current and diesel). The delay in the energy-­­saving driving project in diesel transport had a dampening effect on this development. Reasons for the delays are an unexpectedly high cost for the integration of the telematics into vehicles and the data reengineering required by the different data formats of the various vehicle and engine manufacturers. In bus transport, the specificfinal energy consumption (in relation to bus kilometers) has also decreased compared with the previous year. However, it is still slightly above the specific value of 2006. The reason for this is the increasing provision of comfort features, which leads to higher energy consumption.