Development on the year under review
- Weaker stimuli from the market and competitive environment.
- Improvement in profits, particularly in land transport.
- Comprehensive initiatives for reducing costs, improving efficiency and digitalization.
DB Schenker | 2019 | 2018 | Change | 2017 | ||
absolute | % | |||||
| Customer satisfaction (SI) | 71 | 71 | – | – | 74 |
| Shipments in land transport (thousand) | 107,132 | 106,468 | + 664 | + 0.6 | 100,452 | |
| Air freight volume (export) (thousand t) | 1,186 | 1,304 | – 118 | – 9.0 | 1,300 | |
| Ocean freight volume (export) (thousand TEU) | 2.294 | 2.203 | + 91 | + 4.1 | 2,169 | |
| Total revenues (€ million) | 17,091 | 17,050 | + 41 | + 0.2 | 16,430 | |
| External revenues (€ million) | 17,018 | 16,973 | + 45 | + 0.3 | 16,345 | |
| Gross profit margin (%) | 36.1 | 34.8 | – | – | 34.3 | |
| EBITDA adjusted (€ million) | 1,082 | 703 | + 379 | + 53.9 | 676 | |
| EBIT adjusted (€ million) | 538 | 503 | + 35 | + 7.0 | 477 | |
| EBIT margin (adjusted) (%) | 3.1 | 3.0 | – | – | 2.9 | |
| Gross capital expenditures (€ million) | 662 | 273 | + 389 | + 142 | 246 | |
| Employees as of Dec 31 (FTE) | 76,153 | 75,817 | + 336 | + 0.4 | 71,888 |
| Employee satisfaction (SI) | – | 3.8 | – | – | – | |
| Employee satisfaction – follow-up workshop implementation rate (%) | 92.6 | – | – | – | 96.0 | |
| Share of women as of Dec 31 (%) | 36.1 | 35.7 | – | – | 35.5 | |
| Specific greenhouse gas emissions (land transport) compared to 2006 | – 24.0 | – 25.8 | – | – | –20.2 |
| Specific greenhouse gas emissions (air freight) compared to 2006 (based on tkm) (%) | – 9.1 | – 9.3 | – | – | –8.8 | |
| Specific greenhouse gas emissions (ocean freight) compared to 2006 (based on tkm) (%) | – 64.3 | – 61.2 | – | – | –60.7 | |
Customer satisfaction remained stable. Since 2017 we have been surveying about 15,000 customers annually in 28 countries on customer satisfaction.
Volume development was positive in land transport and ocean freight. As a result of the tense market situation, air freight volume declined markedly.
The economic development was encouraging. The operating profit figures were positive, partly as a result of an increase in income. Gross profit also rose, most clearly in contract logistics. The gross profit margin improved.
Revenues were generated 41% in land transport, 21% in air freight, 18% in ocean freight and 16% in contract logistics.
The adjusted EBIT was generated 32% in land transport, 32% in air freight, 17% in ocean freight and 15% in contract logistics.
- Revenue development was at the previous year’s level. The positive development in land transport, ocean freight and contract logistics, as well as overall positive exchange rate effects, were almost completely offset by declines in air freight.
- Other operating income (–7.2%/€ –20 million) decreased, partly as a result of lower income from the release of provisions and the disposal of property, plant and equipment.
The volume and freight rate developments were particularly noticeable on the expenses side:
- Cost of materials (–1.5%/€ –167 million) declined slightly due to air freight. Demand-related growth in ocean freight and exchange rate effects partially compensated for this.
- Personnel expenses (+5.4%/€ +176 million) rose as a result of a higher number of employees, mainly in contract logistics and land transport, as well as exchange rate factors.
- The decline in other operating expenses (–17.3%/€ –365 million), in particular in contract logistics, was mainly attributable to the IFRS 16 effect (opposite effect in depreciation).
- Depreciation (+172%/€ +344 million) increased due to the IFRS 16 effect.
Capital expenditure activity has increased significantly. The growth was mainly due to the IFRS 16 effect. Even adjusted for this impact, capital expenditure increased in the regions of Asia/Pacific and Europe, among others. Capital expenditures continued to focus on Europe.
At the end of the year under review, 29% of employees were employed in land transport, 9% in air freight, 7% in ocean freight and 32% in contract logistics. Overall, the number of employees was roughly at the level of the end of the previous year.
Employee satisfaction is measured every two years. In the year under review, the focus was on follow-up processes to the 2018 survey. The follow-up workshop implementation rate was stable at a very high level.
As of December 31, 2019, the share of women rose slightly.
In land transport, the reduction in greenhouse gas emissions compared to 2006 remained at the previous year’s level. Slight fluctuations can be attributed to volatility in the cargo mix, which affects weight utilization and therefore greenhouse gas efficiency.
The reduction in air transport is driven by the continuous replacement of older aircraft types by newer ones.
The significant reduction in ocean freight is primarily attributable to further consolidation of transport services. With the Ocean Network Express (ONE) and the merger of Maersk and Hamburg Süd, further synergies have been achieved in the services offered.
DB Schenker is actively working in the Clean Cargo Working Group (CCWG), in particular to ensure the data quality of the over 3,000 vessels covered, whose emissions and transport services are reported for 85% of container shipping.
In the energy consumption of stationary facilities, the significant reduction is attributable to various efficiency measures, but also to reduced energy consumption due to climatic conditions.
Land transport line of business
- Further development of the network and product portfolio and quality improvements with positive effects.
- Price effects had a positive impact.
| Land transport line of business | 2019 | 2018 | Change | ||
absolute | % | ||||
| Shipments in land transport (thousand) | 107,132 | 106,468 | + 664 | + 0.6 |
| Total revenues (€ million) | 7,125 | 7,092 | + 33 | + 0.5 | |
| External revenues (€ million) | 7,058 | 7,023 | + 35 | + 0.5 | |
EBITDA adjusted (€ million) | 341 | 196 | + 145 | + 74.0 | |
EBIT adjusted (€ million) | 172 | 125 | + 47 | + 37.6 | |
| Employees as of Dec 31 (FTE) | 21,811 | 21,580 | + 231 | + 1.1 |
Volume development was slightly positive in land transport.
The economic development was encouraging. The operating profit figures improved significantly as a result of a disproportionate increase in income.
- Revenue development adjusted for exchange rate effects was slightly higher, mainly due to price factors. Negative exchange rate effects led to a development close to the previous year’s level.
- Cost of materials decreased slightly. Exchange rate effects, in particular, had an impact on expenses. Adjusted for exchange rates, the cost of materials was at the previous year’s level.
- Personnel expenses increased due to the increase in the number of employees.
- As a result of the first-time application of IFRS 16, there was a shift from other operating expenses to depreciation.
- This resulted in a correspondingly positive effect on EBITDA, which subsequently developed significantly more positively than EBIT.
The number of employees increased in part due to taking on temporary workers.
Air freight line of business
- The collapse in demand and high available capacities led to a significant decline in freight rates.
- A range of measures for standardization and improving productivity are being implemented.
| Air freight line of business | 2019 | 2018 | Change | ||
absolute | % | ||||
| Air freight volume (export) (thousand t) | 1,186 | 1,304 | – 118 | – 9.0 |
| Total revenues (€ million) | 3,542 | 3,804 | – 262 | – 6.9 | |
| External revenues (€ million) | 3,542 | 3,804 | – 262 | – 6.9 | |
| EBITDA adjusted (€ million) | 204 | 186 | + 18 | + 9.7 | |
EBIT adjusted (€ million) | 172 | 178 | – 6 | – 3.4 | |
| Employees as of Dec 31 (FTE) | 6,883 | 7,032 | – 149 | – 2.1 |
Performance development declined significantly as a result of the global market slowdown.
The economic development was weaker: adjusted EBIT deteriorated as the decline in expenses was unable to fully compensate for performance-related weak income development.
- Revenue development declined as a result of performance and the freight rate development. This was partly offset by positive exchange rate effects.
- In line with the volume and freight rate development, cost of materials also decreased. Adjusted for exchange rate effects, the decline was even stronger.
- Personnel expenses increased as a result of wage increases and exchange rate effects.
- As a result of the first-time application of IFRS 16, there was a shift from other operating expenses to depreciation. Depreciation also increased due to an IT project.
- This resulted in a correspondingly positive effect on EBITDA, which subsequently developed more positively than EBIT.
The number of employees decreased as a result of the volume decline, particularly in the Asia/Pacific and Middle East and Africa regions.
Ocean freight line of business
- Increase in demand in the Full Container Load (FCL) division significantly surpassed market growth.
- Measures to improve efficiency in implementation.
- Tenders awarded for major projects in Europe, South America and the Asia/Pacific region.
Ocean freight line of business | 2019 | 2018 | Change | ||
absolute | % | ||||
| Ocean freight volume (export) (thousand TEU) | 2,294 | 2,203 | + 91 | + 4.1 |
| Total revenues (€ million) | 3,090 | 2,930 | + 160 | + 5.5 | |
| External revenues (€ million) | 3,090 | 2,930 | + 160 | + 5.5 | |
| EBITDA adjusted (€ million) | 104 | 84 | + 20 | + 23.8 | |
| EBIT adjusted (€ million) | 91 | 81 | + 10 | + 12.3 | |
| Employees as of Dec 31 (FTE) | 5,396 | 4,974 | + 422 | + 8.5 |
Performance development in ocean freight was positive. In particular, the high-volume trade between the Asia-Pacific region and Europe, as well as the development on the export routes to South America, had an impact.
The economic development was encouraging. Income increased more than the operating expenses. As a result, the operating profit figures increased significantly.
- Revenues increased, mainly driven by volume growth and exchange rate effects.
- Cost of materials also increased significantly as a result of increased volumes and exchange rate effects.
- Personnel expenses increased as a result of the service expansion and exchange rate factors.
- As a result of the first-time application of IFRS 16, there was a shift from other operating expenses to depreciation. Depreciation also increased due to an IT project.
- This resulted in a correspondingly positive effect on EBITDA, which subsequently developed more positively than EBIT.
The number of employees has increased as a result of business development.
Contract logistics line of business
- Good business development in the existing and new customer base.
- Implementation of measures to increase productivity.
- Shortage of skilled employees delays commissioning of new sites.
- Crisis in the automotive sector negatively impacts income development.
| Contract logistics line of business | 2019 | 2018 | Change | ||
absolute | % | ||||
| Warehouse space (million m²) | 8.4 | 8.3 | +0.1 | +1.2 |
| Total revenues (€ million) | 2,734 | 2,622 | + 112 | + 4.3 | |
| External revenues (€ million) | 2,733 | 2,621 | + 112 | + 4.3 | |
EBITDA adjusted (€ million) | 312 | 141 | + 171 | + 121 | |
EBIT adjusted (€ million) | 79 | 92 | – 13 | – 14.1 | |
| Employees as of Dec 31 (FTE) | 24,625 | 24,439 | + 186 | + 0.8 |
Economic development in contract logistics was dampened: adjusted EBIT deteriorated despite a slight increase in revenues, particularly as a result of the significant increase in personnel expenses.
- The development of revenues was slightly positive as a result of business expansions and growth in the existing business, particularly in Europe. Positive exchange rate effects support development.
- Cost of materials also increased, but only to a below-average extent. Exchange rate effects also had an expense-
increasing effect. - Personnel expenses increased as a result of a higher average number of employees and exchange rate effects.
- As a result of the first-time application of IFRS 16, there was a noticeable shift from other operating expenses to depreciation.
- This resulted in a correspondingly positive effect on EBITDA, which subsequently developed significantly more positively than EBIT.
The increase in the number of employees was due to the business expansion as well as the taking on of temporary workers.
