Development of business units

Markets and strategy

DB Arriva continues to focus on its business transformation and performance improvement program to ensure a com­petitive cost base and improved operational efficiency. This continued to deliver good outcomes throughout 2022, with cost reductions and improved commercial governance for selecting the best contracts and ensuring longer-term sustainable growth. In 2022 DB Arriva introduced improvements to its organizational structure to support a new KPI-driven approach to managing operational and financial performance across the business. DB Arriva has also rolled out a new tender and contract management process.

In 2020, DB Arriva’s strategic review identified core markets where it can continue to thrive and grow in the future. In this review, portfolio adjustments were also defined in markets classified as “not part of the core business.” In terms of focus, good progress has been made and, among other things, the sale of activities in Sweden and Portugal was completed. DB Arriva has also concluded contracts for the sale of activities in Denmark and Serbia, as well as the bus business in Poland. These are expected to conclude in 2023. These transactions are part of the realignment of DB Arriva’s portfolio, which is a key element of its forward-looking strategy. The goal is to build a stronger, more competitive business in the long term. This enables more innovation and sustainable growth, while DB Arriva is closely tailored to the needs of its customers, passengers and the communities that it serves.

Customers are at the heart of the transformation program to build stronger and deeper relationships with clients. To achieve this, DB Arriva has, among other things, introduced a structured approach to key account management, using data and insights to build closer and deeper relationships with customers. By the end of 2022, more than 95% of contracted revenue was underpinned by structured key account management plans which means improved quality of conversations with clients, and improved insight of client needs and expectations.

Sustainability remains a core focus at DB Arriva as the business unit strives towards climate neutrality. Each business in each country has clearly defined targets to contribute to the goal. Four workstreams have been established: zero emissions buses and trains, ESG circularity (including buildings) and diversity and inclusion. DB Arriva launched its Zero Emission Institute in 2022 to support the transition to zero emissions bus fleets.

In October 2022, as part of its focus on sustainability, DB Arriva launched its new Inclusion Strategy, marking a significant milestone on its journey to becoming a more inclusive employer. The strategy, which has been developed with input from employees from across DB Arriva, comes with a set of clear targets and specifications that each of the DB Arriva businesses will need to achieve in the coming years. These targets include an increase in the number of leaders and managers from under-represented groups and an increase in the number of leaders and managers who are women. Key focus areas have been developed to improve its workforce, workplace, the experience of passengers and to ensure DB Arriva continues to support the communities it serves.

In 2022, DB Arriva conducted the biannual DB-wide employee survey as part of its employee engagement activities. Employee satisfaction has remained stable, with five DB Arriva businesses now outperforming the external benchmark. A key motivational driver for DB Arriva employees is the customer focus, which remains a strength. Employees are increasingly keen to invest in their personal development, supported by DB Arriva.

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