• Additional burdens due to weak performance development in the economic climate.
• Positive effects from Rail Freight Transport Campaign.
• Expansion of business in Belgium.
• Tracking of operating personnel to stabilize production.
• Operating profit development under pressure.

Performance development in Central Europe declined in particular due to the decline in crude steel and vehicle production in Germany. The business expansion in Belgium had a compensating effect. The capacity utilization (tons per train) was further improved slightly.

The economic development remains challenging. The increase in income was not able to offset the higher expenses, meaning that the operating profit figures declined.

• Despite the decline in performance, revenues were at the previous year’s level. This resulted, among other things, from higher revenues from purchased transport services, including to stabilize production in Germany. External revenues decreased due to performance.
• Other operating income increased significantly, mainly due to the train-path price support (opposite effects in revenues).

On the expenses side, there was an increase, driven by the personnel expenses and cost of materials:

• The cost of materials increased, particularly as a result of increased purchased transport services to stabilize production in Germany, among other things. In addition, price increases also had an impact.
• Personnel expenses increased as a result of collective bargaining agreements, as well as the tracking of operating personnel at DB Cargo AG.
• The increase in other operating expenses resulted primarily from higher purchased services. The cost-­­reducing IFRS 16 effect was more than compensated.
• The increase in depreciation was mainly due to the IFRS 16 effect.

Gross capital expenditures decreased due to lower capital expenditure measures. The IFRS 16 effect had an increasing effect.

The number of employees increased, mainly due to appointments in the operating area in Germany and as a result of the business expansion in Belgium and Italy.

• Decline in demand caused by the economic situation and negative effects in France.
• In Great Britain, uncertainties about the form of Brexit had an effect.
• Overall satisfactory business performance.

Performance development in Western Europe was differentiated. Volume produced grew. The volume sold was at the previous year’s level. Capacity (tons per train) decreased. Development in Spain had a positive effect. The renewed strikes in France and bad weather at the end of 2019 had a dampening effect.

Economic development was significantly higher than in the previous year: income increased more than expenses, so that the operating profit figures improved.

• Revenues increased as a result of the elimination of the negative effects from the previous year (strikes in France and severe weather in Europe), as well as growth in the metal and intermodal divisions, among other things.
• Other operating income increased mainly as a result of higher income from vehicle sales in Great Britain.

On the expenses side, there was an increase, driven by the cost of materials:

• Cost of materials increased, mainly as a result of higher purchased transport services. Among other things, lower maintenance expenses resulting from the takeover of maintenance services that were previously provided to the Group externally had a compensating effect.
• Personnel expenses increased slightly as a result of the ex­­­pansion of maintenance activities and salary adjustments.
• Other operating expenses declined as a result of the IFRS 16 effect (opposite effect in depreciation).
• Depreciation increased due to the IFRS 16 effect.

• Capital expenditures increased, particularly in Great Britain and because of the IFRS 16 effect.

As of December 31, 2019, the number of employees declined, mainly due to fluctuations and performance.

• Overall positive revenue development, in particular due to the Europe-­­Asia transport services.
• Price measures offset factor cost increases.
• Increase in personnel costs due to a tense labor market situation.
• Decline in volume sold in Poland caused by economic conditions.

Performance development in Eastern Europe in relation to volume sold and volume produced was weaker. The amount of freight carried fell markedly, partly due to lower capacity in the Polish seaports and declines in coal traffic.

Economic development was almost stable: the revenue growth was largely offset by higher factor costs, among other things.

• Revenues increased mainly as a result of price effects. In addition, logistics services and the Europe-­­Asia transport services also showed a positive development.
• Other operating income declined as a result of the elimination of positive effects from the sale of locomotives and freight cars in the previous year.

On the expenses side, there was an increase, driven by the cost of materials:

• Cost of materials increased significantly as a result of higher transport performance purchases for the China transport services.
• Personnel expenses increased due to wage increases, mainly driven by a tense labor market situation in Eastern Europe.
• Other operating expenses decreased significantly. This resulted from the IFRS 16 effect (opposite effect in depreciation).
• Depreciation increased significantly as a result of the IFRS 16 effect.

Capital expenditures increased as a result of the IFRS 16 effect.

Among other things, the number of employees increased slightly as a result of appointments for the Europe ― Asia corridor.