Additional indicators for the assets, financial position and results of operations

The economic development of DB Group in 2023 will be marked by additional burdens from the implementation of additional measures for quality stabilization and quality increases, higher energy prices and tariff developments. In addition, we expect the freight rate level at DB Schenker to normalize, as well as additional burdens from inflation. A further recovery in demand in rail passenger transport and the implementation of countermeasures will partially compensate for this.

Revenue development is therefore likely to be considerably weaker in 2023 and could also lead to a slight decline. Development of profits will be significantly negative. We will continue our quality and capital expenditure initiative for the Integrated Rail System with large capital expenditures. We thus intend to improve our quality and customer satisfaction, drive forward digitalization (including IT security improvements) and increase our performance capability.

Capital expenditures in 2023 are expected to be significantly above the 2022 level. Among other things, higher vehicle capital expenditures at DB Long-Distance and higher capital expenditures on track infrastructure, as well as measures to stabilize quality and increase capacity, are noticeable here.

Efficient liquidity management is once again a top priority for us in 2023. We are focusing on continually forecasting the cash flow from operating activities, as this is our main source of cash and cash equivalents. We produce liquidity forecasts every month on the basis of a 12-month liquidity plan.

In 2023, we must redeem financial liabilities (excluding current bank liabilities) at about the same level as in 2022. Funding needs for this are met by issuing public and non-­public bonds. Roadshows are planned in Europe and Asia in conjunction with the bond issues. In addition, we are expecting to take out short-term loans in 2023 for advance financing of the measures to stabilize the operating quality of the infrastructure. The discussions with the Federal Government regarding the future financing of the track infrastructure have not yet been completed.

We continue to have adequate financial leeway for our capital market activities from our debt issuance programs and our commercial paper program. The guaranteed credit facilities serve as a fallback in the event of interrupted access to the capital market. At the beginning of 2023, we issued one senior bond through DB Finance. Our short- and medium-term liquidity supply is therefore also secure in 2023.

The majority of our gross capital expenditures in 2023 will again be covered by investment grants. In addition, a further equity measure from the Federal Government is planned as part of the Federal Government’s Climate Action Program. The net capital expenditures to be financed by DB Group will likely also not be fully covered by internal sources in 2023.

We still plan to divest DB Arriva in the medium term.

Net financial debt is expected to increase significantly as of December 31, 2023, taking into account increased net capital expenditures and measures to stabilize quality and increase track infrastructure capacity.

We will also continue our M&A activities in a selective and focused manner in 2023.