• Countermeasures are partially mitigating effects from significant cost pressure.
• Performance in London is improving despite the persistently challenging market environment.
• Final patient transport contracts expired.

Overall performance development declined slightly, driven by the current negative market development and portfolio changes.

Economic development shows revenue growth as well as higher expenses for driver costs, driver training and digitalization projects, for example, leading to reduced operating profit.

• Revenue development was positive, mainly as a result of passenger revenue growth, revenues from bus sales and exchange rate effects. This was offset by the cessation of contracts in non-­­emergency patient transport.
• There were significant additional liabilities on the expense side, particularly in terms of personnel expenses.
• Cost of materials increased slightly as a result of higher expenses for maintenance and the procurement of buses for resale. These were largely compensated by exchange rate effects and slightly lower energy expenses due to lower performance.
• Personnel expenses increased, mainly as a result of collective bargaining agreements, a shortage of drivers and the absence of a one-­­off effect related to a pension liability management exercise from the previous year.
• Other operating expenses fell due to the IFRS 16 effect (opposite effect in depreciation). Increased expenses for driver training and digitalization projects (contactless payment systems) partially compensated for this.
• Depreciation increased significantly as a result of the IFRS 16 effect.

Capital expenditures also increased significantly as a result of the IFRS 16 effect and digitalization projects.

The number of employees fell, largely due to the cessation of the non-­­emergency patient transport contracts.

• Cessation of the ATW franchise in October 2018.

Performance development was impacted by the cessation of the ATW franchise (October 2018).

The development of the operating profit was slightly positive as expenses fell more than income. The development was particularly driven by the cessation of the ATW franchise, as well as the ongoing delays in implementing infrastructure projects at Arriva Rail North. The significant increase in adjusted EBITDA was a result of the IFRS 16 effect.

• Revenues decreased due to the cessation of the ATW franchise. Higher passenger revenues and positive exchange rate effects partially compensated for this.
• Other operating income increased, mainly as a result of utilizing provisions for impending losses and additional financing for project costs. This was partly offset by the cessation of the ATW franchise.

The development of expense items was driven by the cessation of the ATW franchise. Higher expenses for infrastructure utilization partly compensated for this:

• The significant increase in cost of materials was mainly caused by higher expenses for infrastructure utilization and lower performance-­­related income due to construction work. Negative exchange rate effects had an increasing effect as well.
• Personnel expenses decreased due to the cessation of the ATW franchise. This was partly offset by a higher number of employees at Arriva Rail North.
• Other operating expenses decreased significantly due to the IFRS 16 effects (opposite effect in depreciation) and the cessation of the ATW franchise in particular.
• Depreciation increased significantly due to the IFRS 16 effect.
• Capital expenditures also increased significantly as a result of the IFRS 16 effect.

The number of employees increased due to recruitment at Arriva Rail North.

• Acquisition of VT-­­Arriva in Hungary in December 2018 had positive effects.
• Implementation of countermeasures in response to the challenging market environment with ongoing cost pressures, including driver shortages in Central and Eastern Europe.

Performance development in the Mainland Europe line of business was largely positive:

• In rail transport, the number of passengers and the volume sold increased mainly as a result of the development in Sweden. The cessation of a transport contract in the Netherlands had a slight dampening effect. The volume produced remained virtually the same.
• The number of bus passengers generally rose because of the acquisition of VT-­­Arriva (December 2018). The volume produced was at the previous year’s level.

Economic development was weakened as a result of a challenging market environment, among other factors. Positive effects were partly a result of expanding business in Hungary (acquisition of VT-­­Arriva). The increase in adjusted EBITDA was a result of the IFRS 16 effect.

• Revenue development was positive, mainly due to the acquisition of VT-­­Arriva and performance gains in Sweden. In contrast, the cessation of transport contracts in Denmark and the Netherlands, as well as exchange rate effects, had a dampening effect.
• Other operating income fell slightly.

The development of expense items was significantly driven by the acquisition of VT-­­Arriva as well as increased operating costs:

• The significant increase in cost of materials was mainly driven by the acquisition of VT-­­Arriva, higher maintenance expenses and the impact of fuel tax refunds in the Netherlands in the previous year, relating to earlier years.
• Personnel expenses increased slightly. The effects resulting from the acquisition of VT-­­Arriva were largely compensated by the cessation of transport contracts.
• The decline in other operating expenses mainly resulted from the IFRS 16 effect (opposite effect in depreciation).
• Depreciation increased significantly due to the IFRS 16 effect.
• Capital expenditures increased significantly, mainly as a result of the IFRS 16 effect and the procurement of buses. This was countered by the completion of capital expenditures in the previous year relating to the Northern Lines contract in the Netherlands, due to start in December 2020.

The number of employees fell, due in large part to the cessation of transport contracts.

The external revenue structure did not change significantly. The cessation of transport contracts contributed to the decline in Denmark and the Netherlands.