Opportunity and risk report Deutsche Bahn 2021

Procurement and energy market

Depending on the market conditions, the purchase prices for raw materials, energy, and transport and construction services may fluctuate significantly. In addition, there is the risk of sustained price momentum, particularly in the construction and logistics sectors.

The Ukraine war and, in particular, the sanctions imposed on Russia as a result and Russia’s possible reactions to them are already resulting in significant price increases, not only for gas and oil, but also for raw materials. These developments may be significantly exacerbated by further shortages in supply quantities, the suspension of deliveries or bans on imports. This may result in significant risks in terms of energy costs and construction prices.

Among other things, we counter the risk of energy price increases by using appropriate derivative financial instruments and concluding long-term procurement contracts. However, these safeguards only have an effect for a limited period, and limit opportunities arising from falling energy prices.

This means that, depending on the market and competitive situation, it may not be possible or may only be possible to a very limited extent to pass increased costs on to the cus­­­tomer in the short term. This in turn has a negative impact on margins.

The bundling of requirements and the optimization of procurement processes create opportunities for leveraging further potential in procurement prices.

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