Markets and strategy

In 2020, regional rail passenger transport and public transport suffered significantly from the pandemic-related restrictions on public life and the associated change in the demand for mobility among commuters and leisure passengers. In the medium term, however, we assume that the trends for further transport growth in local transport are intact. These include the continued attractiveness of modern metropolitan areas, the influx of families in particular into suburban areas, combined with a professional commute to the metropolitan areas, and the continued high importance of environmental and climate protection, as well as increasing acceptance of sharing services. Increasing regionalization funds will create stability in the coming years. We also expect further positive stimuli for German local transport from the climate package. DB Regional intends to continue to benefit from this positive market environment as the largest provider.

DB Regional is oriented towards the Strong Rail strate­­­gy and interprets it for local transport under the slogan “Regio­n­-al and urban mobility.” We understand local transport in terms of all modes of transport and, in cooperation with intra-Group partners such as ioki, CleverShuttle or Mobimeo, we are bringing together regional rail passenger transport, bus, sharing and pooling offers and, in future, our platform solutions as well. 1414 New forms of mobility To the Strong Rail strategy

In order to achieve the objectives, the strategy of DB Regional consists of the three strategic areas of the Strong Rail strategy:

• More robust: Thanks to modern vehicles and the increasing use of digitalization and automation opportunities in operation and maintenance, DB Regional contributes to a sustained improvement in quality and an ap­­­precia­tion in the value of regional rail passenger transport. In ad­­dition to these aspects, more capacity is also required. To this end, DB Regional, in consultation with the public transport authorities, intends to gradually increase the fleet strength and systematically invest in the redesign of existing vehicles and in a sustainable improvement in quality. Sufficient and qualified personnel are also of great importance for a robust operation. 44 Fleet and depot expansion To the Strong Rail strategy
• More powerful: DB Regional is strengthening its functional operation, maintenance and vehicles with the aim of further improving quality and achieving economies of scale through standardization and transparency. This increases competitiveness and DB Regional is preparing for the possible increase in fragmented awarded tenders. 88 Strong admin To the Strong Rail strategy At the same time, the DB Excellence Systemwill continue to be implemented in operations and maintenance. 99 Stable processes To the Strong Rail strategyDriving assistance systems are increasingly being used, platforms and IT systems are being developed to allow customer assistants to be digitally networked, and new planning and scheduling systems incorporating AI are being rolled out. Operations and maintenance were linked by automating data on the technical vehicle condition and transmitting it to maintenance during the journey. The fleet is equipped with sensors and transmission facilities.
• More modern: Together with intra-Group partners, DB Regional is expanding cross-mobility solutions and making it possible to connect regional rail passenger transport and local public transport to facilitate intelligent expansion. DB Regional intends to defend its position as the leading provider of urban and regional mobility in Germany in future and to further strengthen it with innovations and a greater customer focus. 1313 Digital platforms To the Strong Rail strategy 1414 New forms of mobility To the Strong Rail strategy 1515 Smart services To the Strong Rail strategy