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Capital expenditures increased significantly
Capital expenditures (€ million) | 2018 | 2017 | Change | ||
absolute | % | ||||
Gross capital expenditures | 11,205 | 10,464 | + 741 | + 7.1 | |
Investment grants | 7,209 | 6,724 | + 485 | + 7.2 | |
Net capital expenditures | 3,996 | 3,740 | + 256 | + 6.8 | |
The increase in gross capital expenditures was mainly due to expenditures on track infrastructure and vehicles. In addition, extensions to rental agreements, which are valued as finance leases, had the effect of increasing capital expenditures.
Investment grants also increased significantly. They are unchanged at about 64% of gross capital expenditures (previous year: 64%).
The increase in net capital expenditures was largely driven by DB Cargo (primarily procurement of locomotives and freight cars and capitalization of self-generated software) and the Other division (primarily extensions to rental agreements). At DB Long-Distance, capital expenditures increased slightly at a high level because of further additions of ICE 4 and IC 2 trains. By contrast, net capital expenditures at DB Regional and DB Netze Track in particular decreased.
Our capital expenditure activities focused especially on measures to improve performance and efficiency in the area of track infrastructure and the rejuvenation of our vehicle fleet. The structure of gross capital expenditures shifted primarily because of larger capital expenditures in locomotives at DB Cargo, slightly in favor of the area of Freight Transport and Logistics.
Capital expenditure priorities unchanged in Germany
Gross capital expenditures by regions (€ million) | 2018 | 2017 | Change | ||
absolute | % | ||||
Germany | 10,682 | 9,906 | + 776 | + 7.8 | |
Europe (excluding Germany) | 506 | 546 | – 40 | – 7.3 | |
Asia/Pacific | 79 | 61 | + 18 | + 29.5 | |
North America | 16 | 9 | + 7 | + 77.8 | |
Rest of world | 5 | 5 | – | – | |
Consolidation | – 83 | – 63 | – 20 | + 31.7 | |
DB Group | 11,205 | 10,464 | + 741 | + 7.1 | |
Net capital expenditures by regions (€ million) | 2018 | 2017 | Veränderung | ||
absolut | % | ||||
Germany | 3,487 | 3,184 | + 303 | + 9.5 | |
Europe (excluding Germany) | 492 | 544 | – 52 | – 9.6 | |
Asia/Pacific | 79 | 61 | + 18 | + 29.5 | |
North America | 16 | 9 | + 7 | + 77.8 | |
Rest of world | 5 | 5 | – | – | |
Consolidation | – 83 | – 63 | – 20 | + 31.7 | |
DB Group | 3,996 | 3,740 | + 256 | + 6.8 | |
In the regional breakdown of gross capital expenditures, the focus remained on Germany. Here the increase can be explained particularly by procurement of freight cars at DB Cargo (€ +259 million) and infrastructure measures at DB Netze Track and DB Netze Stations.
In Europe (excluding Germany) capital expenditures decreased. Here, lower capital expenditures at DB Arriva in Great Britain and Denmark in particular had an impact. In contrast, capital expenditures by DB Arriva in the Netherlands increased, amongst others. In the Asia/Pacific region, DB Schenker increased its capital expenditures in logistical facilities in the United Arab Emirates.
Investment grants primarily for infrastructure
Of the investment grants received by DB Group in the year under review (€ 7,209 million), almost all of them (€ 7,178 million) related to infrastructure. The most important financing sources for infrastructure capital expenditures are grants, mostly from the Federal Government, the Federal states and local authorities.
Most of these are based on the LuFV and the Federal Rail Infrastructure Extension Act (Bundesschienenwegeausbaugesetz; BSWAG). Further investment grants were provided as a result of the Municipal Transport Financing Act (Gemeindeverkehrsfinanzierungsgesetz; GVFG), the noise remediation program of the Federal Government and as part of the ZIP. The European Union allocates grants (Trans-European Networks; TEN and Connecting Europe Facility; CEF) for infrastructure capital expenditures on TEN.
In addition to investment grants, DB Group also receives (significantly lower) grants recognized as income, mainly also in respect of infrastructure.
On the balance sheet, investment grants are directly deducted from the cost of purchase and cost of production of the assets to which they relate. The recognition of all grants is such that the responsible Federal agencies can conduct comprehensive checks to ensure that they are spent in accordance with their purpose and the law.
A transparent description of the various forms of grants is available online.
