Domination and profit and loss transfer agreements

Domination and profit and loss transfer agreements
DOMINATION_AND_PROFI_AND_LOSS_TRANSFER_AGREEMENTS_ENG

Profit transfer and loss compensation between companies in Germany do not constitute intra-Group transactions. On the contrary, the profit and loss transfer agreement stipulates that the amount of profit distributed or the sum required to offset losses is not reset every year but is calculated automatically. The cash flow is based on the shareholder’s right to profits or obligation to compensate any losses. Notwithstanding this, DB Group ensures that Group companies have sufficient capital stock despite the obligation to offset potential losses generated by other companies within the Group.

Investors are only willing to provide capital if amortization and returns are ensured. A purely debt-based financing model is not commercially viable, as it is associated with high risks. Profits are essential for maintaining DB Group’s capital expenditure capacity. Profits generated are either retained or distributed to the Federal Government as the sole shareholder. The share of profit retained in DB Group increases the capital expenditure and borrowing capacity.

CASH FLOWS BETWEEN

DB AG AND DB INFRASTRUCTURE

COMPANIES / € million

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Total

 FROM CAPITAL INCREASES BY DB A G             

DB Netz AG

+600

+620

+5

+1,000

+1,125

+3,350

DB Station&
Service AG

+286

+28

+111

+14

+1,000

+1,439

Total

+600

+286

+28

+731

+14

+5

+1,000

+2,125

+4,789

FROM PROFIT AND LOSS TRANSFER AGREEMENTS TO (–)/ FROM (+) DB A G

             

DB Netz AG

+790

+181

+548

+324

+183

+260

+212

–146

–338

–768

+44

–307

–197

–66

–217

–81

–280

–390

–509

–402

+23

+139

–997

DB Station&
Service AG

+70

–0

+251

–37

–55

–69

–52

–90

–190

–150

–141

–155

–160

–169

–188

–203

–176

–186

–190

–146

+32

+61

–1,943

DB Energie GmbH

–34

–2

–29

–43

–47

–44

–111

–106

–18

–91

–38

+38

–62

+37

–39

–51

–35

–59

–12

+3

+66

–126

–803

Total

+826

+179

+770

+244

+81

+147

+49

–342

–546

–1,009

–135

–424

–419

–198

–444

–335

–491

–635

–711

–545

+121

+74

–3,743

DIVIDEND PAYMENT TO THE FEDER AL GOVERNMENT (FOR PREVIOUS YEAR)

             

DB AG

–500

–525

–525

–200

–700

–850

–600

–450

–650

–650

–5,650

(+) Cash inflow (–) Cash outflow