Business development

Capital expenditures

Capital expenditures (€ million)

2020

2019

Change

absolute

%

 

Gross capital expenditures 

14,402

13,093

+1,309

+10.0

     thereof integrated rail system

13,128

11,713

+1,415

+12.1

  Investment grants

8,516

7,447

+1,069

+14.4

     thereof integrated rail system

8,494

7,412

+1,082

+14.6

Net capital expenditures 

5,886

5,646

+240

+4.3

     thereof integrated rail system

4,634

4,301

+333

+7.7

The increase in gross capital expenditures was driven by the integrated rail system and resulted primarily from higher capital expenditures in infrastructure. The conclusion of new leasing contracts and the extension of existing leasing contracts also increased capital expenditures.

Investment grants, which are almost exclusively allocated to the integrated rail system, also increased significantly. They accounted for about 59 % of gross capital expenditures (previous year: about 57 %).

Net capital expenditures were also significantly higher. Among other things, the increase in capital expenditures
on the existing network at
DB Netze Track along with the conclusion of new leasing contracts and extension of existing leasing contracts for office buildings had an impact on the integrated rail system.

The focus of our capital expenditure activities continues to center on the integrated rail system for measures to improve performance and efficiency in the rail infrastructure sector as well as measures to rejuvenate and develop our vehicle fleet.

Gross capital expenditures
by regions 
(€ million)

2020

2019

Change

absolute

%

 

Germany 

13,282

11,826

+1,456

+12.3

Europe (excluding Germany)

1,012

1,186

174

14.7

Asia/Pacific

182

133

+49

+36.8

North America

38

37

+1

+2.7

Rest of world

8

13

5

38.5

Consolidation

120

102

18

+17.6

DB Group 

14,402

13,093

+1,309

+10.0

Net capital expenditures
by regions
 
(€ million)

2020

2019

Change

absolute

%

 

Germany 

4,788

4,414

+374

+8.5

Europe (excluding Germany)

990

1,151

161

14.0

Asia/Pacific

182

133

+49

+36.8

North America

38

37

+1

+2.7

Rest of world

8

13

5

38.5

Consolidation

120

102

18

+17.6

DB Group 

5,886

5,646

+240

+4.3

In terms of the regional distribution of gross capital expenditure, the focus remained on Germany. The increase is mainly due to infrastructure measures and the capitalization of leasing agreements.

Capital expenditures have also decreased in Europe (excluding Germany). Lower capital expenditures at DB Arriva, mainly as a result of the cessation of the ARN franchise, were partially offset by an increased capital expenditure activity by DB Schenker in France, Poland and Italy, among others.

In the Asia/Pacific region, DB Schenker invested more heavily in logistics facilities in China and Singapore.

Of the investment grants received by DB Group in 2020, the vast majority related to infrastructure. The most important funding sources for capital expenditures on infrastructure are grants, mostly from the Federal Government and from Federal states and local authorities.

Infrastructure grants and capital expenditures (€ billion)
Infrastructure_grants_ENG

Most of these are based on the LuFV and the German Federal Rail Infrastructure Extension Act (Bundesschienenwegeausbaugesetz; BSWAG). Further investment grants were provided in accordance with the GVFG, the Federal Government’s noise remediation program and to equip the infrastructure with the European Rail Traffic Management System (ERTMS). The European Union allocates grants (Trans-European Networks; TEN and Connecting Europe Facility; CEF) for infrastructure capital expenditures on TEN.

In addition to investment grants, DB Group also receives (significantly lower) grants recognized as income, also main­ly in respect of infrastructure.

On the balance sheet, investment grants are directly deducted from the purchase and manufacturing costs of the assets to which they relate. The reporting of all grants is such that the competent Federal agencies can conduct comprehensive checks to ensure that they are spent in accordance with their purpose and the law.

A description of the various forms of grants is available online.

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