Development in the year under review
- Performance development impacted by Covid-19.
- Decline in revenues, partially mitigated by government support.
- Cessation of the ARN franchise on March 1, 2020.
DB Arriva | 2020 | 2019 | Change | 2018 | ||
absolute | % | |||||
Punctuality (rail) (United Kingdom, Denmark, Sweden, the Netherlands, | 93.1 | 89.3 | – | – | 89.8 | |
Customer satisfaction bus and rail in the United Kingdom (SI) | 80 | 78 | – | – | 79 | |
Passengers bus and rail (million) | 1,179 | 2,214 | –1,035 | –46.7 | 1,998 | |
Volume sold (rail) (million pkm) | 4,494 | 12,617 | –8,123 | –64.4 | 12,999 | |
Volume produced (bus) (million bus km) | 927.7 | 1,065 | –137.3 | –12.9 | 1,074 | |
Volume produced (rail) (million train-path km) | 111.3 | 168.9 | –57.6 | –34.1 | 177.6 | |
Total revenues (€ million) | 3,990 | 5,410 | –1,420 | –26.2 | 5,441 | |
External revenues (€ million) | 3,988 | 5,405 | –1,417 | –26.2 | 5,433 | |
EBITDA adjusted (€ million) | 51 | 752 | –701 | –93.2 | 575 | |
EBIT adjusted (€ million) | –431 | 289 | –720 | – | 300 | |
Gross capital expenditures (€ million) | 457 | 718 | –261 | –36.4 | 326 | |
Employees as of Dec 31 (FTE) | 46,008 | 52,331 | –6,323 | –12.1 | 53,056 | |
Employee satisfaction (SI) | 3.8 | – | – | – | 3.6 | |
Share of women as of Dec 31 (%) | 14.7 | 14.9 | – | – | 16.9 | |
Specific greenhouse gas emissions (rail) compared to 2006 (based on rail car units) (%) | –12.2 | –9.7 | – | – | –12.3 | |
Specific greenhouse gas emissions (bus) compared to 2006 (based on bus km) (%) | –16.2 | –10.1 | – | – | –18.2 | |
The development in the year under review was influenced by two key factors:
- the impact of the Covid-19 pandemic, and
- the cessation of the ARN franchise on March 1, 2020.
Punctuality in rail passenger transport (United Kingdom, Denmark, Sweden, the Netherlands, Poland and the Czech Republic) increased significantly, mainly driven by the cessation of the ARN franchise as well as lower capacity utilization and lower passenger numbers due to the Covid-19 pandemic.
In the United Kingdom, DB Arriva operates services with continued high customer satisfaction ratings. The satisfaction index increased in 2020, primarily due to the impact of the cessation of the ARN franchise. UK Bus’s satisfaction ratings continue to be high compared to industry norms (the industry satisfaction ratings in 2020 have been impacted by the Covid-19 pandemic).
Performance development was strongly negative due to the Covid-19 pandemic: the number of passengers (bus and rail) decreased significantly. The same is true for volume produced.
The economic development was significantly below the previous year primarily driven by lower overall income:
- Revenues declined strongly primarily due to the decrease in volumes as well as exchange rate effects. Government support measures and new transport contracts had a positive dampening effect.
- Other operating income (+ 27.7 %/€ + 86 million) increased in the opposite direction and had some dampening effects. The increase was driven by utilization of the provision for the impending losses for the ARN franchise and government support relating to the Covid-19 pandemic.
Total expenses were lower, driven by the development of cost of materials and personnel expenses:
- The significant decrease in cost of materials (– 19.6 %/€ – 349 million) was particularly impacted by the cessation of the ARN franchise and the reduced fuel consumption due to the Covid-19 pandemic, partially offset by increased costs for track access at UK trains.
- The decrease in personnel expenses (– 13.0 %/€ – 315 million) is the result of the cessation of the ARN franchise and exchange rate effects.
The development of the remaining expense items was negative, but only partly offsetting:
- Other operating expenses (+ 3.7 %/€ + 29 million) increased, particularly due to Covid-19 effects including provisions for future contract losses. This was partially offset by the cessation of the ARN franchise and reduced franchise payments due to the government support measures.
- Depreciation (+ 4.1 %/€ + 19 million) was higher, mainly characterized by reassessment effects and new contracts in Mainland Europe partially offset by the cessation of the ARN franchise.
Capital expenditures decreased mainly as a result of the cessation of the ARN franchise and of vehicle projects being postponed due to the Covid-19 pandemic.
The number of employees fell, largely as a result of the cessation of the ARN franchise.
Employee satisfaction increased slightly, among other things due to the increased importance of occupational health and safety and the improved provision of necessary work equipment, and was on a good level. The compass index was 58 %, rated as average.
The share of women decreasd slightly. DB Arriva is committed to strengthening workplace diversity to ensure it is fully representing the diverse communities it serves.
DB Arriva’s specific greenhouse gas emissions fell in bus and train transport. Driver telematics made an important contribution to the reduction in emissions. This ensures a reduction in heavy acceleration and braking in both buses and trains. Our bus fleet is becoming more efficient and environmentally friendly every year thanks to an increasing proportion of Euro VI engines.
- Negative effects mainly due to the Covid-19 pandemic, partially mitigated by government support measures.
UK Bus line of business | 2020 | 2019 | Change | ||
absolute | % | ||||
Passengers (million) | 366.9 | 716.5 | –349.6 | –48.8 | |
Volume produced (million bus km) | 298.0 | 345.9 | –47.9 | –13.8 | |
Total revenues (€ million) | 838 | 1,076 | –238 | –22.1 | |
External revenues (€ million) | 837 | 1,074 | –237 | –22.1 | |
EBITDA adjusted (€ million) | 29 | 134 | –105 | –78.4 | |
EBIT adjusted (€ million) | –69 | 44 | –113 | – | |
Gross capital expenditures (€ million) | 36 | 64 | –28 | –43.8 | |
Employees as of Dec 31 (FTE) | 14,806 | 15,130 | –324 | –2.1 | |
The performance development at UK Bus declined strongly due to the Covid-19 effects.
The economic development also declined strongly and led to a significant deterioration in operating profit figures driven by revenue losses:
- The revenue development was strongly negative mainly due to declines in passenger numbers relating to the Covid-19 pandemic. Exchange rate effects had an additional negative effect.
- Other operating income increased significantly in the opposite direction, primarily due to the Covid-19 support measures such as the Covid-19 Bus Services Support Grant and the Coronavirus Job Retention Scheme (furlough support).
On the expenses side, there were almost no changes overall. Lower personnel expenses and cost of materials were partially offset by increased depreciation:
- The decrease in cost of materials was particularly the result of the weaker performance development. This was largely offset by higher expenses relating to the cessation of the bus sales business of Arriva Bus&Coach, as well as higher maintenance expenses.
- Personnel expenses decreased slightly as a result of performance development as well as exchange rate effects. Covid-19 support through furlough support is included in other operating income above.
- Other operating expenses decreased mainly due to exchange rate effects. Adjusted for this effect other operating expenses remained roughly unchanged.
- Depreciation increased in the opposite direction due to the 2019 capital expenditures and reassessment of assets.
The number of employees declined slightly.
- Negative effects mainly due to the Covid-19 pandemic, partially mitigated by government support measures.
- Hibernation of services in Grand Central and subsequent cancellation of the planned Grand Central Blackpool extension.
- Cessation of the ARN franchise on March 1, 2020.
- Direct award of the CrossCountry franchise for three years from October 18, 2020.
UK Trains line of business | 2020 | 2019 | Change | ||
absolute | % | ||||
Passengers (million) | 120.5 | 354.8 | –234.3 | –66.0 | |
Volume sold (million pkm) | 2,943 | 10,264 | –7,321 | –71.3 | |
Volume produced (million train-path km) | 57.7 | 115.8 | –58.1 | –50.2 | |
Total revenues (€ million) | 1,286 | 2,190 | –904 | –41.3 | |
External revenues (€ million) | 1,255 | 2,137 | –882 | –41.3 | |
EBITDA adjusted (€ million) | 38 | 220 | –182 | –82.7 | |
EBIT adjusted (€ million) | –36 | 80 | –116 | – | |
Gross capital expenditures (€ million) | 47 | 277 | –230 | –83.0 | |
Employees as of Dec 31 (FTE) | 4,948 | 11,215 | –6,267 | –55.9 | |
The performance development at UK Trains was negatively impacted by the patronage impact of the Covid-19 pandemic and the cessation of the ARN franchise on March 1, 2020.
The economic development was also characterized by these effects. As a result, the operating profit figures declined significantly due to a drop in revenues:
- Revenues decreased strongly mainly due to the negative volume development, which was partially mitigated by government Covid-19 support measures.
- Other operating income decreased as well, but only slightly, mainly due to exchange rate effects.
On the expenses side the declining performance development and the cessation of the ARN franchise resulted in a significant reduction in expenses:
- The significant decline in cost of materials resulted primarily from the cessation of the ARN franchise and Covid-19-related service reductions, partially offset by higher track access costs at CrossCountry.
- The decrease of personnel expenses resulted mainly from the cessation of the ARN franchise.
- Other operating expenses declined significantly, mainly due to the cessation of the ARN franchise as well as reduced franchise payments relating to the government Covid-19 support measures.
- Depreciation significantly decreased due to cessation of the ARN franchise.
The reduction of capital expenditures was also a result of the cessation of the ARN franchise.
The significant decrease in the number of employees was mainly driven by the cessation of the ARN franchise.
Negative effects from the Covid-19 pandemic, partially mitigated by government support measures.
Mainland Europe line of business | 2020 | 2019 | Change | ||
absolute | % | ||||
Passengers (bus) (million) | 610.2 | 1,018 | –407.8 | –40.1 | |
Passengers (rail) (million) | 81.5 | 125.4 | –43.9 | –35.0 | |
Volume sold (rail) (million pkm) | 1,551 | 2,353 | –802 | –34.1 | |
Volume produced (bus) (million bus km) | 629.7 | 719.5 | –89.8 | –12.5 | |
Volume produced (rail) (million train-path km) | 53.6 | 53.2 | +0.4 | +0.8 | |
Total revenues (€ million) | 2,034 | 2,321 | –287 | –12.4 | |
External revenues (€ million) | 1,894 | 2,182 | –288 | –13.2 | |
EBITDA adjusted (€ million) | 50 | 402 | –352 | –87.6 | |
EBIT adjusted (€ million) | –220 | 174 | –394 | – | |
Gross capital expenditures (€ million) | 370 | 377 | –7 | –1.9 | |
Employees as of Dec 31 (FTE) | 25,897 | 25,572 | +325 | +1.3 | |
The performance development at Mainland Europe was impacted by the Covid-19 pandemic:
- In rail transport the number of passengers and volume sold significantly decreased. Covid-19 pandemic reductions on volume produced were offset by positive effects from new transport contracts in the Czech Republic.
- In bus transport, passenger numbers and volume produced significantly decreased, mainly as a result of the Covid-19 pandemic with the impact variable across each country depending on the respective intensity of restrictions.
The economic development was negative:
- The revenue development was significantly negative, mainly related to Covid-19 effects. Exchange rate effects had a negative effect as well. New services in the Czech Republic had a positive effect.
- In contrast, other operating income increased primarily due to the Covid-19 support measures.
On the expenses side, the relief from the performance reductions was more than offset by additional expenses:
- The significant decrease in cost of materials was mainly driven by lower fuel expenses due to the Covid-19-related service reductions. New transport contracts in the Czech Republic had an adverse effect.
- Personnel expenses remained roughly stable.
- Other operating expenses increased significantly, primarily due to Covid-19 effects including the creation of provisions for impending losses.
- Depreciation rose significantly, mainly due to effects from reassessment of assets in relation to Covid-19 pandemic as well as capital expenditure activities for new bus and rail contracts.
The number of employees increased slightly, mainly due to the new transport contracts in the Czech Republic.
The external revenue structure changed only slightly, mainly due to effects from new transport contracts in the Czech Republic. The revenue share of Sweden increased as well. In contrast the revenue share of Spain declined.
