Development in the year under review
- Personnel expenses increased as a result of collective bargaining agreements and a higher number of employees.
- Optimization of the service companies.
- Digitalization and Group projects advanced.
| Subsidiaries/other | 2018 | 2017 | Change | ||
absolute | % | ||||
| Total revenues (€ million) | 4,990 | 4,854 | +136 | +2.8 | |
| External revenues (€ million) | 573 | 627 | –54 | –8.6 | |
EBITDA adjusted (€ million) | –200 | –136 | –64 | +47.1 | |
| EBIT adjusted (€ million) | –453 | –392 | –61 | +15,6 | |
Gross capital expenditures (€ million) | 511 | 358 | +153 | +42.7 | |
Net capital expenditures (€ million) | 508 | 357 | +151 | +42.3 | |
Employees as of Dec 31 (FTE) | 53,877 | 51,937 | +1,940 | +3.7 | |
The area Subsidiaries/other encompasses the governance functions (such as corporate development, finance and treasury, and Human Resources) and the dependent administrative service units (such as Shared Service Center accounting and HR services) of the holding company DB AG. This segment also bundles the legally independent administrative service units within DB Group (such as DB Temporary Work and DB JobService) and the independent operating service units (such as DB Vehicle Maintenance and DB Systel) which provide services to several DB Group business units.
The increase in total revenues resulted primarily from higher revenues generated with intra-Group customers, including in connection with an increased IT project business at DB Systel, projects in the area of construction works in infrastructure at DB Bahnbau, and for security and cleaning services. There was a counteracting effect partially from the decrease in construction and project business at DB Bahnbau with non-Group customers.
The decrease in operating profit came about primarily because of collective bargaining effects in personnel expenses, an increase in IT services expenses and project costs as a result of measures to improve reliability and product quality.
Higher capital expenditures resulted inter alia from contract extensions for two rental properties which are treated as finance leases. Beyond that, capital expenditures for Group projects increased, including in the area of digitalization and as a consequence of the purchase of construction vehicles at DB Bahnbau.
The number of employees increased, partly as a result of additional recruitment for Group projects and service commissions and the increase in in-house production volumes, especially at DB E &C, DB Systel, DB Services, DB Vehicle Maintenance and DB Security.