Development in the year under review
- Performance and profit development continues to decline due to the economic environment in industries predisposedto rail transport.
- Global impact of the Covid-19 pandemic on supply chains.
DB Cargo | 2020 | 2019 | Change | 2018 | ||
absolute | % | |||||
Punctuality (%) | 76.9 | 74.0 | – | – | 72.8 | |
Customer satisfaction (SI) | 68 | 61 | – | – | 60 | |
Freight carried (million t) | 213.1 | 232.0 | –18.9 | –8.1 | 255.5 | |
Volume sold (million tkm) | 78,670 | 85,005 | –6,335 | –7.5 | 88,237 | |
Volume produced (million train-path km) | 156.8 | 162.5 | –5.7 | –3.5 | 165.8 | |
Capacity utilization (t per train) | 501.7 | 523.2 | –21.5 | –4.1 | 532.3 | |
Total revenues (€ million) | 4,119 | 4,449 | –330 | –7.4 | 4,460 | |
External revenues (€ million) | 3,854 | 4,188 | –334 | –8.0 | 4,177 | |
EBITDA adjusted (€ million) | –321 | 13 | –334 | – | 54 | |
EBIT adjusted (€ million) | –728 | –308 | –420 | +136 | –190 | |
EBIT margin (adjusted) (%) | –17.7 | –6.9 | – | – | –4.3 | |
Gross capital expenditures (€ million) | 452 | 570 | –118 | –20.7 | 587 | |
Employees as of Dec 31 (FTE) | 30,052 | 29,525 | +527 | +1.8 | 28,842 | |
Employee satisfaction (SI) | 3.9 | – | – | – | 3.5 | |
Share of women as of Dec 31 (%) | 11.5 | 11.5 | – | – | 11.5 | |
Specific final energy consumption compared to 2006 (based on tkm) (%) | –23.1 | –21.0 | – | – | –20.4 | |
Quiet active freight cars in Germany 1)as of Dec 31 | 60,180 | 57,644 | +2,536 | +4.4 | 50,409 | |
1) Excluding wagons rented from third parties.
The punctuality of DB Cargo improved significantly in 2020, mainly due to developments in Germany and Eastern Europe. A performance-related increase in resource availability, which increased the stability of the production system, had a positive effect.
Customer satisfaction has improved noticeably throughout the entire transport chain. In 2020, about 770 customers across Europe took part in the satisfaction survey.
The performance development declined noticeably overall as a result of the effects of Covid-19 and the economic downturn in industries predisposed to rail transport. At the beginning of the Covid-19 pandemic, in April and May 2020, volume sold declined significantly. Since the summer of 2020, it has recovered significantly and, from October 2020, it was at least at the same level as in the previous year.
The economic development remained tense. Declining income and slightly higher overall expenses led to a significant decline in operating profit figures:
- Revenues fell noticeably. Performance declines in the logistics sector and lower volume sold could only be partially offset by growth in Europe-Asia traffic.
- Other operating income (–8.7 %/€ –41 million) also declined significantly, mainly as a result of lower sales of locomotives and freight cars.
On the expenses side, there were additional charges, driven by depreciation and personnel expenses. Cost of materials expenditure developed in the opposite direction:
- Personnel expenses (+1.7 %/€ +30 million) increased as a result of collective bargaining and the increase in personnel, especially in Central Europe.
- The significant increase in depreciation (+26.8 %/€ +86 million) was driven by unscheduled depreciation on software.
- Other operating expenses (–0.6 %/€ –4 million) were close to the previous year’s level.
- Cost of materials (–2.4 %/€ –63 million) decreased mainly due to lower expenses for train paths, energy and purchased transport services, as a result of volume decreases. This was partly supported by positive exchange rate effects. Higher maintenance expenses were, in contrast, primarily due to an increase in material consumption in the course of the installation of GPS devices in freight cars.
Gross capital expenditures declined as a result of delayed procurement of freight cars in Central Europe.
The number of employees increased, especially in Central Europe.
Employee satisfaction rose significantly due to improvements in occupational health and safety and an improved working climate in the team, and was thus at a good level. The compass index was in the average range at 58 %.
The share of women remained stable.
The specific final energy consumption compared to 2006 on rail was further reduced.
- Operating profit development under pressure as a result of the Covid-19 pandemic – significantly negative effects due to Covid-19-related production interruptions, especially in the automotive industry.
- New transport services has a partially compensating effect.
- Addition of operating personnel.
Central Europe region | 2020 | 2019 | Change | ||
absolute | % | ||||
Freight carried (million t) | 214.1 | 225.2 | –11.1 | –4.9 | |
Volume sold (million tkm) | 63,886 | 68,265 | –4,379 | –6.4 | |
Volume produced (million train-path km) | 125.7 | 127.3 | –1.6 | –1.3 | |
Total revenues (€ million) | 4,595 | 4,859 | –264 | –5.4 | |
External revenues (€ million) | 3,075 | 3,375 | –300 | –8.9 | |
EBITDA adjusted (€ million) | –308 | –9 | –299 | – | |
EBIT adjusted (€ million) | –599 | –230 | –369 | +160 | |
Gross capital expenditures (€ million) | 325 | 455 | –130 | –28.6 | |
Employees as of Dec 31 (FTE) | 21,798 | 19,741 | +2,057 | +10.4 | |
Performance development in Central Europe declined overall due to the impact of the Covid-19 pandemic on the steel and automotive industries and on combined transport. From the summer of 2020 an upward trend began again, which, together with positive effects from new transport services in Belgium, was able to partially compensate for the negative effects.
The economic development remains challenging. As a result of lower income and increased expenses, the operating profit figures fell significantly.
- Revenues fell noticeably as a result of the decrease in performance.
- In addition, other operating income declined mainly as a result of a decline in services provided to non-Group customers. Higher subsidies for the conversion of freight cars to whisper brakes, among other things, helped mitigate this.
On the expenses side, there was a slight increase, driven by the depreciation and personnel expenses:
- Depreciation increased significantly due to the procurement of multisystem locomotives, increased capital expenditures in freight cars and the leasing of freight cars via a finance lease, as well as unscheduled depreciation on software.
- Personnel expenses increased as a result of collective bargaining and the addition of operating personnel, mainly in Germany.
- Other operating expenses also increased, primarily due to losses from scrapping, rental obligations for locomotives, and higher expenses for data services due to equipping the freight car fleet with telematics equipment.
- Cost of materials, on the other hand, decreased as a result of lower purchased transport services, as well as train-path and energy expenses. By contrast, higher maintenance expenses increased expenses.
Gross capital expenditures fell, driven by a delayed procurement of freight cars.
The number of employees increased, mainly due to appointments in the operating area in Germany and as a result of business expansion in Belgium and Italy.
- Decline in demand in all countries due to Covid-19.
- Positive effects from new transport services in the United Kingdom and France.
Western Europe region | 2020 | 2019 | Change | ||
absolute | % | ||||
Freight carried (million t) | 40.9 | 46.4 | –5.5 | –11.9 | |
Volume sold (million tkm) | 10,197 | 11,906 | –1,709 | –14.4 | |
Volume produced (million train-path km) | 23.5 | 27.3 | –3.8 | –13.9 | |
Total revenues (€ million) | 618 | 675 | –57 | –8.4 | |
External revenues (€ million) | 483 | 546 | –63 | –11.5 | |
EBITDA adjusted (€ million) | 37 | 91 | –54 | –59.3 | |
EBIT adjusted (€ million) | –53 | 15 | –68 | – | |
Gross capital expenditures (€ million) | 60 | 82 | –22 | –26.8 | |
Employees as of Dec 31 (FTE) | 4,248 | 4,190 | +58 | +1.4 | |
Performance development in Western Europe declined overall. Volume produced and volume sold recorded declines, mainly due to the Covid-19 pandemic and strikes in France at the beginning of 2020. New transport services in France and the United Kingdom had a partially compensatory effect.
Economic development dulled noticeably as a result of performance development. The operating profit figures deteriorated significantly:
- Revenues declined significantly due to performance. Effects from the first-time inclusion of SEMAT(previously at equity) partially compensated.
- In addition, other operating income also declined significantly as a result of the elimination of one-off effects, including those related to locomotive sales in the United Kingdom.
On the expenses side, there was a disproportionate decline:
- Cost of materials decreased, mainly due to lower volumes resulting from the Covid-19 pandemic. This was supported by lower infrastructure utilization costs in France.
- Personnel expenses declined primarily due to currency exchange rate fluctuations. Effects from short-time work (among others at DB Cargo UK) were almost completely absorbed by the first-time inclusion of SEMAT.
- Other operating expenses declined due to lower travel and representation expenses due to the lower travel activity because of the Covid-19 pandemic and partly due to short-time work.
- Conversely, depreciation increased due to the first-time inclusion of SEMAT.
Capital expenditures decreased considerably, in particular due to adjustments made in the United Kingdom in connection with the first-time application of IFRS 16 the previous year.
The number of employees increased slightly as a result of the first-time inclusion of SEMAT.
- Overall noticeable positive revenue development, in particular as a result of Europe-Asia transport services.
- Positive development in Romania.
- Covid-19-related disruptions to supply chains.
Eastern Europe region | 2020 | 2019 | Change | ||
absolute | % | ||||
Freight carried (million t) | 14.8 | 15.5 | –0.7 | –4.5 | |
Volume sold (million tkm) | 4,587 | 4,834 | –247 | –5.1 | |
Volume produced (million train-path km) | 7.6 | 7.9 | –0.3 | –3.8 | |
Total revenues (€ million) | 498 | 411 | +87 | +21.2 | |
External revenues (€ million) | 296 | 267 | +29 | +10.9 | |
EBITDA adjusted (€ million) | 30 | 35 | –5 | –14.3 | |
EBIT adjusted (€ million) | 4 | 12 | –8 | –66.7 | |
Gross capital expenditures (€ million) | 38 | 33 | +5 | +15.2 | |
Employees as of Dec 31 (FTE) | 4,006 | 3,950 | +56 | +1.4 | |
Due to Covid-19-related declines in transport at DB Cargo Polska (mainly coal and steel), the performance development was negative. The development in Romania, Hungary and Bulgaria slightly compensated for this.
Economic development remains challenging: revenue increases were offset by higher expenses. The operating profit figures declined.
- Revenues increased significantly due to the positive development of transport to/from China, supported by additional transports in Romania. This was offset by the reduction in transport services as a result of the Covid-19 pandemic and exchange rate effects.
- Other operating income declined slightly as a resultof lower income from locomotive sales.
The expenses side experienced a significant increase, driven by positive business development in the Eurasian corridor:
- Cost of materials increased significantly as a result of higher volumes of purchased transport services for connections to China. Adjusted for exchange rate effects, the increase was even steeper.
- Depreciation increased due to capital expenditures.
- Personnel expenses were at the previous year’s level. Negative exchange rate effects were almost entirely compensated for by a lower number of employees in Poland, among other areas.
- Other operating expenses were also at the same level as in the previous year.
Capital expenditures have increased significantly, mainly as a result of the acquisition of locomotives in Romania.
The number of employees rose slightly, particularly due to the positive development in Romania, among others.
