Markets and strategy
DB Arriva connects communities in various European countries, and continuously invests in new vehicles, improving passenger information systems and developing new mobility solutions to complement traditional passenger modes. This in turn helps the company achieve sustainable positions across its core markets. Furthermore, DB Arriva continues to improve its position by participating in tenders across its markets. Some examples of such investment in technology, products and new tenders are:
- UK Bus has introduced a standardized operating model under a new function that creates a foundation for operational excellence and unlocks additional potential. UK Bus has appointed a national Operations Director, supported by a team to improve operational excellence through various programs of changes.
- UK Trains and Mainland Europe were successful in various tender processes. The successes included direct awarding and extensions of existing contracts, such as those for Chiltern Railways.
Employees are a critical component in DB Arriva’s success. Each year DB Arriva continues to evolve its approach to continually improve engagement with employees, including through a wide range of opportunities for employees to share their ideas and views. This feeds the development of action planning to enable our continual development, making Arriva an even better place to work.
In 2021, DB Arriva was able to maintain the level of employee satisfaction, benchmarking well against external comparisons and supporting our employer of choice vision.
DB Arriva’s commitment to the environment and to the wider sustainability agenda is an integral part of its corporate culture. Central to this is transitioning to zero emissions vehicles where possible, reducing fuel consumption, improving air quality and reducing carbon emissions. DB Arriva has committed to helping shape a sustainable future and in 2021 began developing a new sustainability strategy which will be rolled out in 2022. The strategy will set ambitious targets with a focus on zero emissions vehicle transition for both bus and rail operations in Europe, circularity, green procurement, and diversity and inclusion.
In 2020, DB Arriva undertook a strategic review to ensure the business can continue to thrive and grow in the future. The majority of European markets have been evaluated as core and there will be no change, however certain markets identified as non-core are under evaluation to establish divestment opportunities. The outcome will be a more focused business facilitating even greater innovation and sustain-able growth, whilst also closely aligning their business to the needs of their clients, passengers and the communities they serve. This process is ongoing, and no decisions have yet been made.
In 2021, DB Arriva continued to take appropriate management actions to reduce its cost base to make it more competitive, and throughout the year maintained discipline around its capital expenditures. Such action included, for example, successfully closing its three defined benefit pension schemes to future accrual, resulting in one-off closure costs of € 30 million. As a result of the management actions taken, DB Arriva is able to invest in its growth markets.
In addition, DB Arriva launched a company-wide performance improvement program to identify and implement cost savings and commercial initiatives to build a more efficient and competitive business for the long term. In 2021, DB Arriva began to roll out new tender and contract management processes and introduced a key performance indicator approach to drive performance across the business. Customers sit at the heart of this improvement program, with DB Arriva focused on using data and building insights in order to build closer and deeper relationships to meet DB Arriva’s customers’ needs and expectations.
