2018 Integrated Report – On track towards a better Railway


Expected development of DB Group

Our forecasts for the development of DB Group and the business units in the 2019 financial year are based on our expectations of developments in the market, competition and environment, and the implementation success of the planned measures.

The 2019 financial year will be the first year that DB Group reports under the adoption of the new accounting reporting standard IFRS 16. The changes to the recognition of obligations from leasing contracts will also noticeably influence the income and financial position:

  • The elimination of leasing expenses as operating ex­­penses will lead to a significantly higher operating profit before depreciation (EBITDA) (~€ +0.8 billion).
  • EBIT will only be slightly positively affected, however, as a result of the additional depreciation on leased assets (~€ +25 million).
  • Capital expenditures will noticeably increase (~€ +1.0 billion).
  • ROCE will decrease to a fundamentally lower level (~–0.4 percentage points) as the capital employed will be disproportionately increased compared to EBIT.
  • In addition, financial debt as of December 31, 2019 will significantly increase on a one-time basis as a result of the inclusion of leasing liabilities (~€ +4.4 billion).