Deutsche Bahn · Revenues comparable 39,165 39,293 –128 – 0.3 Profit before taxes on income 1) 876 1,525 – 649 – 42.6 Net profit for the year 1) 649 1,459 –810 – 55.5

Deutsche Bahn 2013 Annual ReportDB2020 – Our compass, even in challenging timesD

euts

che

Bahn

2013

Ann

ual R

epor

t

Selected key figures [ € million ] 2013 2012

Change

absolute %

Revenues adjusted 39,119 39,296 – 177 – 0.5Revenues comparable 39,165 39,293 – 128 – 0.3Profit before taxes on income 1) 876 1,525 – 649 – 42.6Net profit for the year 1) 649 1,459 – 810 – 55.5EBITDA adjusted 5,139 5,601 – 462 – 8.2EBIT adjusted 2,236 2,708 – 472 – 17.4Non-current assets as of Dec 31 1) 43,949 44,241 –292 – 0.7Current assets as of Dec 31 8,945 8,284 + 661 + 8.0Equity as of Dec 31 1) 14,912 14,978 – 66 – 0.4Net financial debt as of Dec 31 16,362 16,366 – 4 –Total assets as of Dec 31 1) 52,894 52,525 + 369 + 0.7Capital employed as of Dec 31 1) 33,086 32,642 + 444 + 1.4Return on capital employed (ROCE) (%) 6.8 8.3 – –Redemption coverage (%) 20.5 22.1 – –Gearing 1) 110 109 – –Net financial debt /EBITDA 3.2 2.9 – –Gross capital expenditures 8,224 8,053 + 171 +2.1Net capital expenditures 3,412 3,487 –75 –2.2Cash flow from operating activities 3,730 4,094 – 364 – 8.9

Pa ssenger tr ansPortPassengers (million) 4,355 4,120 +235 + 5.7r ail Pa ssenger tr ansPortPunctuality passenger transport (rail ) in Germany (%) 94.1 94.6 – –Passengers (million) 2,235 2,213 +22 + 1.0 thereof in Germany 2,016 1,974 + 42 +2.1Volume sold (million pkm) 88,746 88,433 + 313 + 0.4Volume produced (million train-path km) 765.8 760.2 + 5.6 + 0.7r ail freight tr ansPortFreight carried (million t) 390.1 398.7 – 8.6 –2.2Volume sold (million tkm) 104,259 105,894 – 1,635 – 1.5r ail infr a structureTotal punctuality in Germany (%) 93.8 94.3 – –Train kilometers on track infrastructure (million train-path km) 1,035 1,039 – 4 – 0.4 thereof non-Group railways 247.4 230.6 + 16.8 + 7.3 Share of non-Group railways (%) 23.9 22.2 – –Station stops (million) 146.2 146.4 – 0.2 – 0.1 thereof non-Group railways 27.2 26.6 + 0.6 +2.3Bus tr ansPortPassengers (million) 2,120 1,968 + 152 + 7.7Volume sold 2) (million pkm) 8,375 8,421 – 46 – 0.5Volume produced (million bus km) 1,574 1,424 + 150 + 10.5freight forwarding and logisticsShipments in European land transport (thousand ) 95,543 95,325 +218 + 0.2Air freight volume (export) (thousand t) 1,092 1,095 – 3 – 0.3Ocean freight volume (export) (thousand TEU) 1,891 1,905 – 14 – 0.7

Order book passenger transport as of Dec 31 (€ billion) 87.5 79.5 + 8.0 + 10.1Length of line operated (km) 33,448 33,505 – 57 – 0.2Passenger stations 5,668 5,645 +23 + 0.4Rating Moody’s /Standard & Poor’s /Fitch Aa1 /AA /AA Aa1 /AA /AA – –

Employees as of Dec 31 (FTE) 295,653 287,508 + 8,145 +2.8Employer attractiveness – rank 22 31 + 9 –Share of female employees (%) 22.6 22.5 – –

Track kilometers noise remediated in total (km) 1,300 1,200 + 100 + 8.3 Share of freight cars refitted with whisper brakes (%) 10.7 8.9 – –

1) Previous year’s figure adjusted.2) Excluding DB Arriva.

At a glance

æ † ¥

World-wide presence

DB BAhn LonG-DistAnce

euRopeAustria, Belgium, czech Republic, Denmark, France, Germany, hungary, the netherlands, poland, switzerland

DB BAhn ReGionAL

euRopeGermany

DB ARRivA

euRopecroatia, czech Republic, Denmark, Great Britain, hungary, italy, the netherlands, poland, portugal, serbia, slovakia, slovenia, spain, sweden

DB schenkeR RAiL

euRopeBelgium, Bulgaria, Denmark, France, Germany, Great Britain, hungary, italy, the netherlands, poland, Romania, Russia, spain, sweden, switzerland

DB schenkeR LoGistics

euRope Albania, Austria, Belarus, Belgium, Bosnia, Bulgaria, croatia, cyprus, czech Republic, Denmark, estonia, Finland, France, Georgia, Germany, Great Britain, Greece, hungary, iceland, ireland, italy, Latvia, Lithu-ania, Luxembourg, Macedonia, Malta, Republic of Moldova, the netherlands, norway, poland, portugal, Romania, Russia, serbia, slovakia, slovenia, spain, sweden, switzerland, turkey, ukraine

AsiA/pAciFicArmenia, Australia, Azerbaijan, Bahrain, Bangladesh, cambodia, china, hong kong, india, indonesia, iran, iraq, israel, Japan, Jordan, kazakhstan, kyrgyzstan, korea, kuwait, Laos, Lebanon, Macao, Malaysia, Maldives, Mauritius, Myanmar, new Zealand, oman, pakistan, palestinian areas, philippines, Qatar, saudi Arabia, singapore, sri Lanka, syria, taiwan, tajikistan, thailand, turkmenistan, united Arab emirates, uzbekistan, vietnam, Yemen

AFRicA Algeria, Angola, Botswana, Djibouti, egypt, ethiopia, Ghana, kenya, Madagascar, Mauritania, Morocco, namibia, nigeria, senegal, south Africa, tanzania, tunisia, uganda, Zambia, Zimbabwe

AMeRicAs Argentina, Aruba, Barbados, Bolivia, Brazil, canada, chile, colombia, costa Rica, cuba, curacao, Dominican Republic, ecuador, el salvador, Guatemala, Guyana, honduras, Mexico, nicaragua, panama, paraguay, peru, trinidad and tobago, uruguay, usA, venezuela

DB seRvices

euRopeGermany

DB netZe tRAck

euRopeGermany

DB netZe stAtions

euRopeGermany

DB netZe eneRGY

euRopeGermany

Our fleet and networks

Wor

ld-w

ide

pres

ence

/Our

flee

t and

net

wor

ks



Contents

1 20 YeARs oF Deutsche BAhn

A MoDeL FoR success

with A BRiGht FutuRe

39 to ouR stAkehoLDeRs

40 chairman’s letter

44 the Management Boards of DB AG

and DB ML AG

48 Report of the supervisory Board

53 corporate Governance report

62 Financial communication

64 compliance and privacy report

67 GRoup MAnAGeMent RepoRt

68 overview

70 DB Group

92 Business and overall conditions

105 economic position

122 customer and quality

126 social

135 environmental

144 Development of business units

180 Additional information

183 opportunity and risk report

193 events after the balance sheet date

194 outlook

201 consoLiDAteD FinAnciAL

stAteMents

202 consolidated statement of income

203 consolidated balance sheet

204 consolidated statement of cash flows

205 consolidated statement of

changes in equity

206 notes to the consolidated financial

statements

290 Auditor’s report

291 ADDitionAL inFoRMAtion

292 Glossary

295 List of abbreviations

296 Financial calendar and contact information

coveR

u2 At a glance

u3 world-wide presence

u4 our fleet and networks

u5 10-year summary

u7 DB2020 strategy

A

B

C

D

DB2020 Strategy

Our future:Sustainably successful

Our three dimensions

Our four strategic directions

Resource preservation/ emissions and

noise reduction

Cultural change/employee

satisfactionCustomer

and qualityProfitable

growth

EnvironmentalEco-pioneer

SocialTop employer

EconomicProfitable market

leader

20 years of Deutsche Bahn

A model for success with a bright future

20 yeArs of Deutsche BAhn

1995 1996 1997 1998 1999 2000 2001 2002 20031994

rAtIo

of PersonneL

eXPenses

to reVenues

DeBt

In BILLIons

of euros

STARTING POINT 1993

Percent

roce

eBIt In

BILLIons of

euros

1994A A

Deutsche Bahn AG is a young company, one which is

nonetheless steeped in tradition. The merger of

Deutsche Bundesbahn with Deutsche Reichsbahn and the

spin-off of the corporate operations into Deutsche Bahn AG

officially comes into effect on January 1, 1994. The

transformation of the former public authorities into an

Aktiengesellschaft (joint stock corporation) – together with

the introduction of competition on the rails – represents a

crucial element in the attainment of the objectives underlying

the German rail reform. These comprise: “Reducing

the burden on the taxpayer” and “More transport by rail.”

INAuGuRATION ceRemONy IN BeRlIN

At the inauguration ceremony at Berlin central station – today’s ostbahnhof (east station) – the merger of the two state

railways is symbolized by the “fusion” of the rail network maps for West and east. Matthias Wissmann (the former federal Minister of transport) and heinz Dürr (the former ceo and

chairman of the Management Board of Deutsche Bahn AG) present the certificate of incorporation.

A MoDeL for success WIth A BrIGht future

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

1994


1994 1997 1998 1999 2000 2001 2002 20031995 1996

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

nÜrnBerG

BAMBerG

erfurt BeBrA

eIchenBerG hALLe (s.)

DresDen

LeIPZIG

BerLIn

MAGDeBurG

stenDAL hAnnoVer

ÜLZen

hAMBurG

strALsunD LÜBecK

hAGenoW LAnD

nÜrnBerG

BAMBerG

erfurt BeBrA


DresDen

LeIPZIG

BerLIn

MAGDeBurG

stenDAL hAnnoVer

ÜLZen

hAMBurG

strALsunD LÜBecK

hAGenoW LAnD

OVeRVIeW OF GeRmAN

uNIFIcATION

TRANSPORT PROJecTS

nureMBerG

BAMBerG

erfurt BeBrA


DresDen

LeIPZIG

BerLIn

MAGDeBurG

stenDAL hAnoVer

ÜLZen

hAMBurG

strALsunD LÜBecK

hAGenoW LAnD

1995A A

Deutsche Bahn’s second financial year is characterized

by improved productivity, a tangible rise in transport volume

and an increase in revenues in passenger transport,

plus the implementation of numerous major infrastructure

projects, at the forefront of which are the German

unification transport projects.

ReGIONAlIzATION OF ReGIONAl TRANSPORT

the regionalization Act for regional transport becomes law. the issue of responsibility for regional rail transport changes over from

the federal Government to the states, which have to decide autonomously on tasks and expenses. overall, since 1996, about

190 procedures comprising roughly 410 million train kilometers were brought to the market and awarded.

1996A A

The implementation of the German Regionalization

Act marks the start of a new era in regional rail passenger

transport in Germany, triggering the rise of intense

competition in the rail passenger transport market. New

competitors penetrate the market. In the long-distance

transport context, the second generation of ICE high-speed

trains is launched.

1994 1995 1996 1999 2000 2001 2002 20031997 1998

1997A A

The reorganization of Deutsche Bahn into an integrated

mobility and transport services group progresses, the drivers

being modernization, market proximity and a more

customer-oriented approach. Internationalizing the business

is slowly gaining in significance.

1998A A

The restructuring process continues, however the progress

made and the improvement in the earnings situation

are overshadowed by the tragic train crash in Eschede in

1998. The temporary loss of the entire ICE 1 fleet results

in significant constraints on quality and capacity, with

the continued provision of long-distance transport services

only being possible as a result of the extraordinary

efforts of our employees.

mODeRNIzATION OF leIPzIG ceNTRAl STATION

europe’s largest terminal station is reopened in 1997 after extensive renovation work, with a new three-level shopping center and

underground parking under the 270-meter-long concourse. today, the Promenaden (shopping mall) at Leipzig central station is

home to 142 stores and restaurants. A total of € 250 million was spent on modernization and reconstruction. In addition, the

first DB lounges are opened here and in frankfurt am Main in 1997.

lAuNcH OF THe NeW AND uPGRADeD

BeRlIN–HANOVeR lINe

the major Berlin–hanover project, including the renovation and extension of the Lehrter railway, is implemented as part of

the federal transport Infrastructure Plan under the name German unification transport project 4. the costs incurred in relation to the construction of the new and extended lines amount

to approximately € 2.6 billion. numerous test and acceptance runs were done with the Ice s at speeds of up to 331 km/h.


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

1995 – 1998


1994 1995 1996 1997 1998 2001 2002 200320001999

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

the Ice 3 Is the fIrst

trAIn In GerMAny ABLe to

trAVeL At thIs sPeeD

1999A A

Following the spin-off of the Long-Distance Transport,

Regional Transport, Freight Transport, Track and Passenger

Stations business units, DB Group is managed by Deutsche

Bahn AG as a holding company. Deutsche Bahn concludes a

collective bargaining agreement with the unions, which

embodies the commitment entered into by the company in

1994 to refrain from carrying out forced redundancies.

€ 45 billion have been invested by the Federal Government

and Deutsche Bahn in the modernization and improvement

of the railway system since 1994. For the first time, tickets can

be booked online using the Surf & Rail service.

lAuNcH OF THe Ice 3

the Ice 3 sets new standards in technology. these trains reach top speeds of 300 km/h with an output of 8,000 kW and

can also easily handle gradients of 4 %, providing our customers with an entirely new traveling experience.

2000A A

Increased capital expenditures in infrastructure, rolling stock

and stations lays new foundations for improving the

competitiveness of the railways in the transport market. The

creation of a European rail freight transport network

is kicked off by the establishment of the Railion joint venture

and the acquisition of the freight transport business

of the Dutch railway operator NS Groep.

OPeNING OF THe NeW AIRPORT TRAIN

STATION IN FRANKFuRT Am mAIN

After four years of construction work, the first train station in Germany to directly connect an airport to the long-distance

rail network is opened in frankfurt in 1999. It remains Germany’s largest airport train station today, and is used by just

under 26,000 passengers and visitors daily.

1994 1995 1996 1997 1998 1999 2000 2002 20032001

OVeRVIeW OF OPeRATIONS

cONTROl ceNTeRS

operations control center

LeIPZIG DuIsBurG

KArLsruhe

MunIch

hAnoVer

BerLIn

frAnKfurt AM MAIn

2001A A

The implementation of the restructuring and capital

expenditures program continues. The “Rail Initiative” with its

three pillars of “Restructuring, Performance and Growth”

dictates the new strategic direction, with all measures being

in furtherance of one of the three overarching objectives.

The freight transport line of business of the Danish state

railway becomes part of the Railion joint venture.

lAuNcH OF DB cARSHARING

the introduction of the DB carsharing car hire system not only constitutes a further step towards combining

private and rail transport but also a practical and environmentally friendly service for our customers. today, more than

3,000 flinkster car-sharing vehicles are available for immediate use in more than 140 cities.

NeW OPeRATIONS cONTROl ceNTeR IN muNIcH

the seven regional operations control centers form part of the integral system of DB netze track for securing and managing

the railway operations in Germany. Management of the railway operations at the nationwide level takes place at the

network control center in frankfurt am Main.


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

1999 – 2001


1994 1995 1996 1997 1998 1999 2000 2001 20032002

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

In rAIL freIGht

trAnsPort In euroPe

(BAseD on tKM)

In euroPeAn

LAnD trAnsPort

(BAseD on

reVenues)

In GLoBAL

AIr freIGht

(BAseD on t)

In GLoBAL

oceAn freIGht

(BAseD on teu)

In GLoBAL

contrAct LoGIstIcs

(BAseD on

reVenues)

mARKeT POSITIONS OF DB ScHeNKeR (2012)

2002A A

Deutsche Bahn becomes a global player following

its takeover of Stinnes and the latter’s subsidiary Schenker.

The launch of the newly constructed Cologne – Rhine/Main

line results in a new main artery for high-speed transport in

Germany. The flooding of the Elbe causes considerable

damage to the rail infrastructure.

GlOBAl lOGISTIcAl KNOW-HOW By

VIRTue OF DB ScHeNKeR

With its takeover of the globally active company stinnes AG and the associated schenker Group, Deutsche Bahn significantly

strengthens its position in the area of transport and logistics and now also assumes a leading market position in the areas

of european land transport, air and ocean freight, and contract logistics. schenker and Deutsche Bahn’s rail freight

transport operations are now run under the name DB schenker as part of the transport and Logistics division.

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

MILLIon

euros

adjusted operating profit before interest and reimbursements for special burdens. such reim-bursements were paid by the federal Government until 2002 for special burdens incurred

by Deutsche reichsbahn.

2003A A

In the tenth year of the German rail reform, Deutsche Bahn

for the first time generates positive operating profit under its

own steam. Capital expenditures once more amount to

more than € 9 billion. Among other things, DB Netze Track

puts 34 electronic interlockings into operation, more

than in any other year to date.

lAuNcH OF THe BeRlIN–HAmBuRG Ice lINe

the expanded Berlin–hamburg line is successfully launched in December 2004. the newly extended high-speed line

reduces the journey time between these two cities by 30 minutes to approximately one and a half hours.

2004A A

Ten years after the formation of Deutsche Bahn AG, the

positive performance, revenue and profit figures are a proof

of the success of the entrepreneurial approach and

the integrated structure of DB Group. The fast ICE connection

to Hamburg marks the start of a new era of high-speed

transport in Northern Germany.

mIllIONTH ONlINe cuSTOmeR

the online services are gradually extended further and are becoming increasingly popular. ever more rail passengers are

using the information and reservation options online. today, the Internet and automatic ticketing machines are the

most important sales channels.


2005 2006 2007 2008 2009 2010 2011 2012 20132004

2002 – 2004


1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

2004 2006 2007 2008 2009 2010 2011 2012 20132005

the new electronic interlocking is put into operation at the central station in frankfurt am

Main. A total of 33 electronic interlockings projects entailing capital expenditures

in the amount of approximately € 900 million are implemented in 2005.

the overhaul of the 50,000- square-meter roof area of the frankfurt central station is completed.

roof AreA of

the frAnKfurt

centrAL stAtIon

neW eLectronIc

InterLocKInGs

STReNGTHeNING OF POSITION AS leADING

GlOBAl lOGISTIcS SeRVIceS PROVIDeR

the acquisition of BAX Global serves to strengthen our position as a leading global logistics services provider, and enables us

to assume a strong position in the global markets for transport and logistics services: in europe, with DB schenker Logistics

and DB schenker rail, in the us market with the newly acquired operations of BAX, and in Asia with the combined

strength of DB schenker Logistics and BAX. BAX is integrated into the DB schenker network.

2005A A

The takeover of BAX increases the clout of the global network

of DB Schenker. The first test freight train from China

takes only 16 days to arrive in Germany. In Berlin,

the successful lowering of the “bridging segments” marks

the final phase in the construction of the new central

station. The mobility chain is extended through

the expansion of the car-sharing and Call-a-Bike services.

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Joints

87 m

43.5

m

15 m

abou

t 68

m

lowering devicehoisting device

about 183 m

50 m

Vertical assembly of the bridging segments

Lowering of the two bridging segments

completion of the structural work

BeRlIN ceNTRAl STATION:

lOWeRING OF THe BRIDGING SeGmeNTS

2006A A

Deutsche Bahn pushes forward with the expansion of its

global transport and logistics business, reinforcing

its presence in the Asia-Pacific region. In addition, Deutsche

Bahn is designated a “National Sponsor” and official

transport and logistics services provider for the

2006 FIFA World Cup. Approximately 15 million World Cup

visitors travel by train during this four-week

sporting event. In Berlin, the new central station is

opened at a spectacular opening ceremony.

OPeNING OF BeRlIN ceNTRAl STATION

In addition to many other major projects bringing about a strategic strengthening of the core business in Germany, the new

central station in Berlin opens in 2006. It is the largest cross-over train station hub in europe. the station building is divided into

two main levels for rail transport and three connecting and retail levels with approximately 15,000 square meters of floor space

for approximately 80 retail outlets. Approximately 300,000 passengers and visitors pass through Berlin central station daily.


2004 2005 2007 2008 2009 2010 2011 2012 20132006

20

05 – 2006


1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

2004 2005 2006 2008 2009 2010 2011 2012 20132007

DIrect connectIons

frAnKfurt–PArIs Per DAy

DIstAnce

frAnKfurt–PArIs

Journey tIMe

frAnKfurt–PArIs

2007A A

2007 is marked by developments on the internationalization

front. In the area of passenger transport, Deutsche

Bahn takes over the Danish bus company Pan Bus and also

gains entry to the UK passenger transport market with

its takeover of Laing Rail. In the area of rail freight transport,

the company expands its European network with

the takeover of both the English market leader EWS and

the Spanish operator Transfesa.

cOPeNHAGeN TO BecOme PART OF THe

INTeRNATIONAl Ice NeTWORK

At the beginning of December, an Ice departs from Berlin and hamburg to Denmark for the first time. copenhagen

has since become another destination served by our Ices. the continued expansion of our passenger transport services

within europe serves to further reinforce our leading position in the cross-border european rail passenger transport market.

FAST Ice cONNecTION TO PARIS

the new connections to Paris from frankfurt am Main and stuttgart are launched in June 2007. one year later, we are already

able to welcome our millionth passenger on these routes.

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

ReDeSIGN Ice 1 FleeT

MuLtIPLe

unIts to

Be renoVAteD

By 2008

MILLIon euros

to Be InVesteD In

MoDernIZAtIon

the Ice 1 fleet is modernized after approxi-mately 15 years in operation, with particular

emphasis on the interiors, which are adapted in line with the design of the Ice 3.

KILoMeters

eVery yeAr

Are trAVeLeD By

eAch trAIn

2008A A

2008 is dominated by the outbreak of the financial crisis

and the preparations for the IPO of DB Mobility Logistics AG.

The rail freight transport network is extended to include

operations in Italy, Denmark, Switzerland and Poland.

Deutsche Bahn concludes a service and financing agreement

with respect to the existing network, thereby undertaking

to maintain the infrastructure according to binding quality

criteria and to spend at least € 1 billion on maintenance

and at least € 500 million on capital expenditures every year.

The Federal Government agrees to invest € 2.5 billion

every year in the existing network.

OPeNING OF THe S-BAHN (meTRO)

STATION AT HAmBuRG AIRPORT

the s-Bahn in hamburg takes on the transport route to hamburg Airport in December. With the new s-Bahn station

hamburg Airport is linked to the s-Bahn network.

PlANNeD IPO OF DB mOBIlITy lOGISTIcS AG

In early summer, the federal Government and the German parliament (Bundestag) decide in favor of the partial privatization

of DB Mobility Logistics AG, and IPo preparations are completed within only a few months. however, the initial listing

is then postponed indefinitely in the wake of the dramatic developments on the global stock markets.


2004 2005 2006 2007 2009 2010 2011 2012 20132008

2007 – 2008


1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

2004 2005 2006 2007 2008 2010 2011 2012 20132009

hKG

scL

eZe

cWB

VcP

DXB

PVG

frA/hhn LuX /AMs

MIA

eWr

yyZ orD

IAh

AtL

syD

AIR FReIGHT NeTWORK OF DB ScHeNKeR

FIRST cO₂-FRee RAIl FReIGHT TRANSPORT SeRVIceS

since 2009, eco Plus has enabled the co₂-free transport of freight by rail. the advantage of this solution is that no co₂ is

produced and therefore does not subsequently have to be offset. eco Plus is available on all routes within Germany, entirely

regardless of the type or quantity of the transported freight.

NeW AIR FReIGHT HuB AT FRANKFuRT AIRPORT

Integrated logistics centers such as the hub at frankfurt Airport keep the momentum going for global movements of

commodities. At the new air freight hub for europe, air freight consignments from all over the world are bundled,

temporarily stored and prepared for onward carriage.

2009A A

The global financial and economic crisis also has an adverse

effect on the business of Deutsche Bahn. In addition,

technical problems with the S-Bahn in Berlin and the trains

in the ICE 3 fleet cause significant operational issues.

The environmental offensive DB Eco Program is launched and

DB Schenker Rail offers CO₂-free transport solutions

for the first time.

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

countries with DB Arriva

countries without DB Arriva

As of 2013

euROPeAN OPeRATIONS

OF DB ARRIVA

2010A A

In the first year following the economic crisis, tangible signs

of recovery can once more be discerned. With its takeover

of Arriva, Deutsche Bahn significantly increases its presence

in the European passenger transport market. Our

DB Navigator app is downloaded more than one million

times. The Stuttgart 21 construction project is the

center of attention. A special event is celebrated: the 175th

anniversary of the railway in Germany.

TAKeOVeR OF ARRIVA

the acquisition of the uK-based passenger transport company Arriva in 2010 enables us to close the final major gap in our

Group portfolio. All of our regional transport operations outside of Germany, with the exception of cross-border transport

services to and from Germany, are bundled together within the new DB Arriva business unit, which today comprises bus and/or rail

transport services in 14 european countries.


2004 2005 2006 2007 2008 2009 2011 2012 20132010

200

9 – 2010


1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

2004 2005 2006 2007 2008 2009 2010 2012 20132011

PreVentIonIntroduction of low-co₂ processes and prevention of emissions to the greatest possible extent. examples: avoidance of empty trips, use of regenerative sources of energy, prevention

of resource depletion.

reDuctIonProposal of best possible methods to shift modes of

transport (for example, DBs hangartner, eco oceanLane) and introduction of modern (fleet)

technology (for example, e-freight, gateway concept, energy-saving travel, eco-warehousing).

coMPensAtIon compensation as supplementary measure to reduction. examples: supporting gold standard environmental projects or

initiating own projects.

2011A A

Improvements in operational quality and services

take precedence in 2011. Capital expenditures in stabilizing

operations during the winter period, the modernization

of the ICE 2 fleet, orders placed for new regional transport

trains and the ICx are all steps to ensure Deutsche Bahn’s

future viability. At the same time, the international business

of DB Schenker and DB Arriva continues to grow.

NeW cONTRAcT FOR SuPPly OF HyDROPOWeR WITH RWe

Pursuant to a long-term supply agreement for the purchase of electricity from hydropower newly concluded with rWe

in 2011, the proportion of electricity from hydropower in the traction current mix will rise. from 2014 onwards, approximately

900 gigawatt hours of electricity will additionally be obtained from hydropower every year.

INTRODucTION OF ecO SOluTIONS

In May 2011, DB schenker presents its new portfolio of green services. under the name eco solutions, we offer environmentally friendly solutions for all modes of transport – from the railways

to land transport and air and ocean freight to warehousing logistics. the eco solutions are reinforced by the new eco₂PhAnt, which symbolizes the reduction in co₂ emissions which customers can

attain in the transport of their freights. each eco₂PhAnt represents a 5-ton reduction in co₂ emissions – approximately

as much as an elephant actually weighs.

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

ecOlOGIcAl DImeNSION: ecO-PIONeeR

Deutsche Bahn takes climate change very seriously and continually strives to make a significant contribution to climate protection by shifting traffic onto the rails and linking

various modes of transport with the particularly environmentally friendly rail transport. In its

capacity as eco-pioneer for “green products,” DB Group is setting standards for climate-friendly mobility and logistics services.

SOcIAl DImeNSION: TOP emPlOyeR

together with the challenge of providing future-oriented mobility and logistics solutions for an aging society, the effect of demographic change on the labor market is also of the

utmost relevance. In this connection, Deutsche Bahn and many other employers find themselves

under increasingly intense pressure to find suitable new talent – from school and university graduates to individuals with long-stand-ing professional experience.

ecONOmIc DImeNSION: PROFITABle

mARKeT leADeR

the international division of labor means that global commodity movements continue to be of importance. the great demand for regionally

sourced commodities constitutes a challenge to Deutsche Bahn to provide tailor-made global

logistics solutions. In addition, new markets have opened up in the wake of the liberalization of the european transport markets. A further challenge is posed by prevailing uncertainty as to future economic developments.

2012/2013A A

The beginning of 2012 marks the launch of the new

and sustainable DB2020 strategy, which broadens the scope

of the strategic approach to include social and

environmental dimensions. The modernization measures

are implemented at top speed and the Katzenberg Tunnel,

the third longest rail tunnel in Germany, is opened.


2004 2005 2006 2007 2008 2009 2010 2011 20132012 2013

2011

– 20

13

AVerAGe cAPItAL

eXPenDItures

Per yeAr

More trAnsPort

By rAIL In freIGht

trAnsPort

More trAnsPort

By rAIL In PAssenGer

trAnsPort

AnnuAL feDerAL funDs

for the rAILWAys

sInce 1994

InfrAstructure

custoMers

SuBSTANTIAl cAPITAl exPeNDITuReS IN INFRASTRucTuRe

We have ourselves contributed almost one-third of the more than € 100 billion invested in rail infrastructure since the German rail

reform, something that could only be achieved by a Deutsche Bahn AG which is economically strong and enterprise-driven.

FuNcTIONING cOmPeTITION ON THe RAIlS

Approximately 390 customers were active on our rail network in 2013. this figure is unprecedented in europe and clearly shows the degree

of competition prevailing in the rail network in Germany. the services offered by our competitors are also increasing every year.

POSITIVe DeVelOPmeNTS IN PASSeNGeR

AND FReIGHT TRANSPORT

Volume sold in both rail passenger and rail freight transport have increased significantly since 1994,

representing a clear reversal of the negative trend prevailing prior to the German rail reform.

cONSIDeRABle ReDucTION OF BuRDeN ON FeDeRAl BuDGeT

overall, the amount of state funds spent annually for the railways, including the shortfall in the federal railroad fund, has

fallen by € 3.5 billion since 1994. Adjusted for inflation, the federal Government’s annual expenditure in this regard has actually

decreased by 38 % or almost € 8 billion.

Taking stock after 20 years of Deutsche Bahn

A A

The German rail reform laid the foundations for the revival

of rail transport in Germany after years of decline and

made it a very successful competitor on a European level.

A A

DouBLe reVenues

to € 70 BILLIon

Be one of the toP 10

eMPLoyers In GerMAny

reDuce co₂

eMIssIons By 20 %

Social

Ecological

Economic

Continuing the success story

DB2020 — Our compass, auch in schwierigen Zeiten

DB2020 — Our compass, even in challenging times

As a profitable market leader, we offer our customers first-class mobility and logistics solutions.

Economic A A

Economic A A

Positioning ourselves as a profitable market leader in the markets in which we are active.

In order to achieve economic success, we intend first and

foremost to invest in our business – our networks,

our infrastructure and our fleets – with a view to winning over

our customers with a first-class product range of

the highest quality. Two strategic directions are essential

if we are to achieve this leadership goal: continued

focus on customer and quality on the one hand, and on

continued profitable growth on the other. We want

to generate revenues of € 70 billion in 2020 – this corresponds

to a doubling of our revenues over a ten-year period.

Ensuring reasonable profitability and the financial stability

of the company are the central pillars of this goal

for us. We are therefore concentrating on exploiting market

opportunities and developing our business in a

consistent and sustainable manner and with a focus on

the high quality of our services.

mAKING ATTRAcTIVe OFFeRS

the transport agreement for the hamburg s-Bahn (metro) has been extended by 15 years until 2033. the range of ser-vices which will be offered by the hamburg s-Bahn pursuant to the new transport agreement as of December 2018 will entail numerous improvements for the benefit of customers. We will be investing approximately € 400 million in the procurement of 60 new vehicles and in the modernization of our two workshops. the new energy-saving vehicles will be equipped with air-conditioning units, integrated cars and modern passenger information systems. A test run with eight vehicles is planned for 2016.

A A

PluGGING GAPS IN OuR NeTWORK

We have broadened our range of long-distance bus services with a view to plugging gaps in our existing range of railway services. the Ic bus is seamlessly integrated into our timetable and pricing systems. the customer receives a ticket which is valid for both trains and buses. the Ic bus is used on routes which cannot readily be serviced by train, for example because they are not connected to the grid.

A A

STReNGTHeNING OuR

ReGIONAl PReSeNce

DB Arriva has taken over the eastern european operations of Veolia and thus become the largest international provider of pas-senger transport services in the region. this acquisition will enable us to expand our existing business in Poland, slovakia and the czech republic, and to enter the croatian, serbian and slovenian markets, thereby increasing the number of european countries in which DB Arriva is active to 14. Veolia’s eastern european business has a workforce numbering more than 6,300 employees and operates more than 3,400 vehicles at approximately 60 locations. Its core business relates to inner-city and regional bus trans-port services, with its extended portfolio also comprising school bus, long-distance and charter transport services.

A A

exPANDING INFRASTRucTuRe

In December, the city tunnel in Leipzig, with its two single-track channels, 1,438 meters long, was opened with a parallel run, rallies from all termini of the new s-Bahn (metro) network and a big inauguration ceremony. the fast north-south corridor, which passes under Leipzig city center, will enable us to offer new, direct regional connections and considerably reduce journey times. the project covers a total of 5.3 kilometers and involves costs of € 960 million. It also marks the launch of the new s-Bahn (metro) Mitteldeutschland service. the public transport authorities have requested a new color concept for the new s-Bahn (metro) service instead of the red color scheme typi cally associated with DB Bahn regio. We have invested more than € 200 million in the acquisition of 51 talent 2 electric multiple units.

A A

BROADeNING HORIzONS

We have established a joint venture with etihad rail for the provision of rail freight transport services on the Arabian Peninsula. DB schenker rail is responsible for recruiting more than 200 employees who will play an essential role in gradually setting up the rail operations and in maintaining the vehicle fleet.

A A

eNSuRING mOBIle AcceSS

since september, passengers also wishing to have mobile access when traveling can go online via Wifi for half an hour without charge at 105 stations within Germany. In addition to the major hubs, medium-sized stations and some heavily used s-Bahn (metro) stations now also have Wifi access. In recent years, use of hotspots at stations has risen by an average of 20 % per year.

A A

PROVIDING ReAl-TIme INFORmATION

the innovation study DB Zugradar (train radar) displays actual train movements on an interactive map. DB Zugradar shows the approximately 39,000 train journeys every day by linking more than one million operational train movement notifications to approximately 8,000 timetable data sets relating to rail passenger and rail freight transport in real time on a daily basis. the application supports access paths such as Internet browsers, tablet Pcs and smartphones.

A A

DeVelOPING TAIlOR-mADe cONcePTS

In Delbrück, we have implemented a new city bus concept which we intend to use to ensure mobility by providing a range of services which is better tailored to the needs of all generations, for example evening services or improvements to short-dis-tance services in city centers. new are the city bus connections which are serviced by a small fleet of red Delbrück buses and cater to the particular needs of the inhabitants of all ten districts in Delbrück.

A A

KeePING THINGS cleAN

Whether on our platforms, in our buil dings or in our trains: we want our customers to feel comfortable at all times. We have a multitude of employees whose job it is to ensure that this is the case. clean toilets in our trains, in particular, are absolu tely essential. Passenger surveys show just how important the subject of clean -liness is for our customers. As a result, we have increased our cleaning efforts while in service in our Ice trains and hired an additional 50 em-ployees to this end. Particularly on our heavily frequented connections, toilets are now cleaned twice as often as was previously the case.

A A

TRyING OuT INNOVATIONS

our video travel centers provide an entirely new form of advisory services. Individual ticket sales are concluded by completely virtual means: equipped with a camera and microphone, our travel advisors appear on video screens in the station and can then provide travel advice to customers, who can then obtain a printed ticket from the delivery chute.

A A

lOOKING FOR THe Feel-GOOD FAcTOR

In our Zuglabor (train lab), we conduct open dialog with our customers to discover passengers’ preferences and the areas in which they consider there to be room for improvement. We have already conducted three train lab campaigns since 2011 on the subject of train interiors and have already implemented changes in line with customers’ wishes, such as separate backrests and a different method of seat allocation in multi- purpose cars. our fourth train lab in 2013 related to the travel experience and the question of what we can do to make our passengers even more comfortable.

A A

SocialA A

Soci

al

As a top employer, we are able to recruit and retain

qualified skilled employees to work with enthusiasm for

us and our customers.

SocialA A

Being rated a top employer at both the national

and international level.

For us as a leading provider of mobility and logistics services,

everything revolves around the individual. Contented

employees mean satisfied customers and thus the sustained

success of our business, which is why we aim to become

one of the top 10 employers in Germany and also achieve top

rankings at the international level by 2020. As a top

employer, we are able to recruit and retain qualified skilled

employees to work with enthusiasm for us and our customers.

To achieve this, we have decided to increase our

attractiveness as an employer, improve employee satisfaction

in the long term and strengthen our position in the

face of demographic challenges. We want to be able to offer

our employees good prospects and opportunities

for personal development over their entire professional

lives with DB Group.

Soci

al

DeVelOPING INNOVATIVe OFFeRS

In the context of a pilot project, we equipped 120 customer relations employees in the area of regional transport services with tablet computers to enable them to access online information, knowledge data-bases and Web-based advanced training options while carrying out their responsibilities on board our trains. this is an innovative approach to staff training which opens up new learning formats for our employees.

A A

ImPROVING OuR emPlOyeeS’ WORK-lIFe BAlANce

We have opened our first in-house day care center “Bahnbini” in frankfurt am Main for the children of employees in all our business units. the facility provides qualified day care from 6 a.m. to 8 p.m. for 90 children aged between 12 months and six years on premises of more than 2,000 square meters. these attractive opening hours and the fact that the facility does not close during the summer vacation period means that working parents, particularly those who work shifts, have more leeway in organizational terms. “Bahnbini” supplements the 150 or so day care places already available throughout Germany. We additionally provide assistance and advice on alternative day care arrangements.

A A

leARNING FROm FeeDBAcK

A central element in the change in the corporate culture was the first DB Group-wide employee survey conducted in the fall of 2012, which gave our employees the opportunity to express their satisfac-tion with the company and their jobs. the survey also revealed some room for improvement. Almost 30,000 specific measures for change have been agreed upon in more than 10,700 follow-up workshops involving execu tives and em-ployees in Germany, while approximately 3,000 follow-up activities took place in the international entities of DB schenker Logistics and DB schenker rail, and 41 plans for action were initiated at DB Arriva.

A A

cONTINuING cORPORATe

culTuRe cHANGe PROceSS

the campaign for a change in corporate culture launched in 2010 is a central component of our sustainable DB2020 strategy and serves to strengthen our employees’ sense of belonging and community. our DB2020 strategy has imposed new standards throughout all of the divisions of DB Group. central-ized, regional and international dialog events have created a new culture of dialog within DB Group, promoting the open exchange of ideas and collective shaping of our corporate culture. for example, with regard to DB Group’s finance department, national and inter-national conferences have been held with a view to strengthening the self-image of this sphere of activity of DB Group.

A A

PROVIDING GOOD

FuTuRe PROSPecTS

Approximately 3,800 school graduates commenced their professional train ing or a work-study program with us at DB Group in 2013. As one of the largest employers in Germany, we consider the training of a young skilled workforce to be a matter of corporate and social responsibility, our focus being on ensur-ing the high quality of the training we provide. We offer considerable ad-vantages to young professionals in the form of our own in-house training centers, experienced supervisors and a practice-based training approach.

A A

RecRuITING NeW TAleNT

At DB netze track our recruitment activities are primarily focused on the following occupational training pro fessions: underground construction workers/track engineers, electricians and railway workers in operational service specialized in track systems. In 2013, we had a total of approximately 330 training places for prospective traffic controllers available, 80 places more than in 2012. traffic controllers generally complete a three-year course of training to become railway workers in operational service specialized in track systems, during which they learn the principles of railway operation, for example the building and routing of trains and the operation of various interlocking tech-nologies.

A A

ImPROVING AWAReNeSS

our “A job like no other” employment campaign was launched in Germany in november 2012. It was publicized us-ing all forms of media, such as tV, print, radio and billboard advertising. our employees were involved in the role of ambassadors from the outset. the campaign depicts employees in typical workplace situations which demonstrate the diversity and multifaceted nature of the 500 different job profiles available at DB Group. A central element of the campaign is the new careers section of the Group’s website, which is also supplemented by the Group’s presence on social media plat-forms and innovative event formats. the campaign brought about an average increase in the number of applications of 30 % in 2013. We also recorded a con-siderable improvement in our employer ranking.

A A

INITIATING DIAlOGue

DB netze stations has developed a combination of a simulated game and a conference on the future in the form of its “Dialog stations2020,” which has employed quiz questions, “event cards” and discussion rounds to introduce the DB2020 strategy to 3,000 DB netze stations employees in a playful manner, and stimulate their interest in the project.

A A

exPlOITING POTeNTIAl

the DB Award was conferred for the eleventh time in 2013, with all of the 300,000 DB employees worldwide being invited to put themselves forward. A new category this year was “environment,” introduced in the context of the DB2020 strategy. eligible to take part in the competition are projects which go far beyond the day-to-day business and can be shown to already have been successfully implemented. A further award is the special corporate citizenship prize. one of the winning projects in 2013 was an innovative feat of engineering, the “train Mover,” a positioning device capable of moving 450-ton trains on and off the railway tracks, an exercise which had previously always required the use of a haulage engine. the “train Mover” reduces the amount of time needed by 40 minutes, with the result that the trains can resume service more quickly. this innovative device is only one of many ideas which received the DB Award.

A A

FINDING SOluTIONS

A joint “operational working hours project” was initiated for the multiple unit drivers of DB Bahn regio. current working conditions, issues and suggestions for improve-ment in the shift and manpower scheduling context were discussed and specific ideas for viable solutions developed and adopted over the course of four successive workshops. In addition to having a positive effect on the structuring of shift work, this project addressed issues such as “employee-oriented vacation scheduling,” “trou-bleshooters for problems” and “avoidance of information overloads” and produced real results. since 2009, approximately 8,000 shift workers at approximately 130 locations throughout DB Group have been involved in the planning of their own duty rosters.

A A

As an eco-pioneer, our products set standards

for the efficient use of available resources.

EnvironmentalA A

En

viro

nm

enta

l

EnvironmentalA A

Expanding our leading environmental position as

an eco-pioneer.

We aim to become an eco-pioneer by 2020 by reducing our

CO₂ emissions and noise pollution in the rail transport

context, and also by taking a conservationist approach to the

use of our resources. As an international leading mobility

and logistics service provider, we are responsible

for providing environmentally sound transport services.

Environmental friendliness is part of our brand

and performance pledge. Today, the railways already have a

significant edge over other means of transport in terms

of energy efficiency. Environmentally friendly services will, in

the future, be an – if not the – essential factor behind the

purchasing decisions of more and more customers. We aim

to offer a diverse range of green products and services

and reduce our CO₂ emissions globally by 20 % by 2020.

En

viro

nm

enta

l

PReVeNTING emISSIONS

on April 1, we entered a new environmental dimension and since that date approxi-mately five million Bahncard and travel pass holders have been traveling in our 100 % eco-powered Ice, Ic and ec trains at no extra charge. the eco-power for the average distance of the routes traveled is purchased additionally and physically fed into the traction power grid, where it replaces the same amount of conventional traction current mix. Direct purchasing of electricity from renewable sources serves to ensure that no co₂ is generated in the first place. the calculation is reviewed by tÜV süd.

A A

FAcIlITATING e-mOBIlITy

We have launched an innovative pilot project to promote electromobility in Garmisch-Partenkirchen. thanks to e-flinkster, electric cars are directly on hand at the train station and provide passengers with a noise- and emissions-free means of onward travel to their final destination. this location at the train station was previously unused space which now provides parking space and charging points for electric cars. e-flinkster also offers unbeatable advantages to tourists, who can arrive at the train station, get into an electric car and continue their journey in a comfortable and environmentally sound manner.

A A

OFFeRING INceNTIVeS

DB netz has been charging a noise-based remuneration component for loud freight trains since June. this so-called noise-based train-path pricing system is a further tool for ensuring the reduction of rail noise on a sustained basis, and provides train operating companies with an additional financial incentive to use quieter freight cars.

A A

DePlOyING GReeN TecHNOlOGy

We continually review and test the use of new technologies and fuels, such as hybrid engines and second-generation biodiesel, with a view to applying the most modern and envi-ronmentally friendly technologies available on the market. thus, for example, the first truck to run on so-called frozen biogas was put into operation in sweden at the end of March.

A A

GReeNIFyING TRAcTION POWeR

We have also further increased the amount of eco-power we purchase, which now represents 35 % of the total amount of electricity purchased by us. to this end, DB energy, our energy provider, has contracted two additional north sea wind parks in the Krummhörn municipality near emden. DB energy has further more concluded an agreement with VerBunD, the leading electricity company in Austria, for the supply of eco-power obtained from hydropower for the rail transport operations in Germany, which will cover approxi-mately 3 % of the German traction power requirements.

A A

lOWeRING NOISe leVelS

We have set ourselves the goal of halving the level of rail noise between 2000 and 2020. the recent accreditation of the LL brake shoe means that we can now gradually fit our freight cars with noise-reducing “whisper brakes.” these composite brake shoes cut the rolling noise made by freight cars in half because they prevent wheel abrasion and enable the cars to roll more quietly.

A A

TeSTING AlTeRNATIVeS

We are also constantly expanding our green vehicle fleet in the area of bus transport services. for example, DB Arriva has commissioned 21 new biogas-fueled buses and 77 new hybrid buses in the united Kingdom. We have had some previous experience in the use of biogas-fueled buses in sweden and the netherlands.

A A

OPeNING GReeN TeRmINAlS

DB schenker has developed a concept for the energy- efficient and sustainable operation of warehouse facilities and for the reduction of co₂ emissions by up to 35 %. In rudná near Prague, for example, we have commenced operations at a new terminal comprising a warehouse with a surface area of over 8,000 square meters and 92 loading bays, six of which are designed for jumbo trailers. the good transport links to and from the new facility mean that goods can be handled at a considerably faster and more efficient pace. the terminal has been fitted out in line with the most up-to-date safety and environmental standards. In addition to an in-house photovoltaic service station and a solar-powered system for heating water, the building’s environmentally sustainable facilities also include intelligent lighting systems, an efficient heating, ventilation and air-conditioning system, and a liquid petroleum gas vehicle filling station.

A A

eNHANcING e-mOBIlITy

We also opt for electric vehicles for our company cars and intend to gradually expand our fleet of electric vehicles in the future. thus, for example, employees of DB services can choose an electric vehicle which runs entirely on eco-power as their company car and thus make a contribution towards reducing co₂ emissions.

A A

ATo our stakeholders40 Chairman’s letter44 The Management Boards of DB AG and DB ML AG

46 Mandates of the members of the Management Boards48 Report of the Supervisory Board48 Supervisory Board meetings49 Meetings of the Supervisory Board committees50 Corporate governance51 Annual financial statements51 Changes in the composition of the Management Board and the Supervisory Board53 Corporate governance report53 Statement of compliance53 Cooperation between the Management Board and Supervisory Board55 Transparency55 Risk management55 Compliance56 Accounting and auditing56 Efficiency audit of the Supervisory Board56 Compensation report62 Financial communication62 Investor relations62 Ratings63 Bond issues64 Compliance and privacy report64 Compliance65 Privacy

ATo our stakeholders

40 chairman’s leTTer

44 The managemenT boards of db ag and db ml ag

46 mandates of the members of the management boards

48 reporT of The supervisory board

48 supervisory board meetings 49 meetings of the supervisory board

committees 50 corporate governance 5 1 annual financial statements 5 1 changes in the composition

of the management board and the supervisory board

53 corporaTe governance reporT

53 statement of compliance 53 cooperation between the management

board and supervisory board 55 Transparency 55 risk management 55 compliance 56 accounting and auditing 56 efficiency audit of the

supervisory board 56 compensation report

62 financial communicaTion

62 investor relations 62 ratings 63 bond issues

64 compliance and privacy reporT

64 compliance 65 privacy

40 deuTsche bahn group 2013 AnnuAL REPoRT

Chairman’s letterA A

dr. rÜdiger grube

CEo AnD ChAIRMAn oF ThE MAnAGEMEnT BoARD oF DEuTSChE BAhn AG

41To our sTakeholders ChAIRMAn’S LETTER

This year’s Annual Report is marked by a special anniversary: Deutsche Bahn AG publishes its 20th

annual balance sheet.

The rail reform of 1993 cleared the way for the founding of DB AG. The entire rail system was

then newly regulated, and tracks, stations and the traction current grid were opened to competition.

Twenty years later some 390 customers use our infrastructure – more than ever before, and more

than in any other country in the world.

The merger of the Bundesbahn and the Reichsbahn into DB AG was

and is a showcase of successful reunification of West and East. The

excellent results that we have realized after 20 years of rail reform are

primarily due to the efforts of the DB team which has grown together.

Fortunately, current trends in mobility are also pointing towards rail.

however, the next 20 years will not be automatically successful, as

shown by the year 2013, which involved many challenges for us.

The difficult economic situation in Europe and the moderate growth of the global economy

were noticeable in our transport and logistics business, above all in rail freight transport.

Additional burdens for DB Group resulted from increased factor costs, above all for personnel

and energy, as well as from above-average storm damage.

In this challenging year we were nevertheless successful in keeping our revenues above

€ 39 billion; the same level as in the previous year. operating profit (EBIT) remained below our

expectations at € 2.2 billion, while EBIT growth in the second half of 2013 accelerated again

due to the slight economic recovery.

Demand in passenger transport for rail in Germany grew again. Despite unusually severe

weather, 42 million more passengers traveled on our trains. We expect passenger numbers to

grow further in the future. This is also because we were able to win

over 70 percentage of all tenders for regional transport in Germany in

2013. The basic precondition for further growth in passenger numbers

is and will remain the quality of our products, upon which we will place

our main focus in the future as well.

We have also increased the number of our employees and trainees. In 2013, Deutsche Bahn

hired some 11,500 new employees, and took on more than 3,800 trainees and dual degree students

in Germany alone. We were thus one of the leading companies in Germany in terms of new hires.


In addition to the new future collective wage agreement, in spring 2013 we agreed to raise wages

in two stages, a one-time payment as well as an increase in the company pension benefits for about

130,000 workers subject to collective wage agreements. All of these steps highlight our ambitious

goal to be one of the largest, safest and most attractive employers in Germany. on the other

hand, the conclusion of the collective wage agreements were connected with additional costs of

about € 220 million more than in the previous year. As one of the largest energy consumers in

Germany, we were also affected to a large extent by the increased surcharge from the German

Renewable Energy Act. This added costs of almost € 60 million in 2013 alone.

The weather was another large challenge. The long winter with snow and freezing temperatures

until Easter added costs of some € 50 million which burdened the result already at the beginning

of the year. Then came the devastating floods in spring and

summer. Floodwaters on the Elbe, Saale and Danube affected

many of our colleagues personally, and in certain regions para-

lyzed rail transport. Altogether the floods caused economic

damage of over € 100 million. Particularly the weeks-long closure

of the high-speed line Berlin–hanover led to significant lost revenues. The hurricane-force

storms Xaver and Christian were also not expected, and caused massive cuts in train service in

the second half of the year.

But there were also positive highlights! The new flagship of our ICE fleet rolled out. The first

four ICE 3 trains from the 407 series were delivered to us at the end of 2013. The entire ICE 2 fleet

had previously undergone a new design. over half of the IC fleet was also already modernized.

And in regional transport, in 2013 a further 134 trains of the type Talent 2 have started operating

and offer a noticeably more comfortable journey. Furthermore, even more trains and over 100

train stations have been equipped with WiFi, where our customers now receive 30 complementary

minutes of Internet access.

There was also visible progress in infrastructure development: with the city tunnel in Leipzig,

six new train stations and the S-Bahn (metro) Mitteldeutschland all became operational. The

first tunnels were begun for Stuttgart 21 and the new line construction Wendlingen–ulm. We also

completed the modernization of 247 medium and smaller train stations throughout Germany.

nevertheless, the assurance of stable operations in the rail

network will require significantly higher public sector capital

expenditures, particularly to maintain the existing infrastruc-

ture over the long term.

The eco-power campaign in long-distance transport was a further

milestone in 2013. Three-quarters of all long-distance trips were

operated with 100 percentage of the electricity coming from renewable energy sources. We were

able to meet not only our customers’ demands but also our own aspiration of being an eco-pioneer.

43To our sTakeholders ChAIRMAn’S LETTER

In 2013 we were able to increase the share of renewable energy in

traction current to about 35 percent. We have thereby already met the

goal we had set for ourselves for 2020.

Again in 2013, we were able to expand our international mobility

and logistics network as well. With the acquisition of the East Euro-

pean business of Veolia Transdev by DB Arriva, the joint venture with

Etihad Rail for rail freight transport in the Arabian Peninsula and

with new logistics centers in Singapore, Finland, the Czech Republic,

the netherlands and Switzerland, the course has been set for further profitable growth.

We were still able to make enormous progress despite a difficult year: we won more passengers,

more tenders for regional transport, significantly more new hires and considerably more eco-

power in traction current.

Even in volatile times we adhered strictly to our DB 2020 strategy for holistic and sustainable

success of our company. We have set our sights firmly on our three goals: to become a profitable

market leader focused on customers and quality, a top employer

and an eco-pioneer. This is demonstrated by the many improvements

which you will be able to read about in this Annual Report.

In the interests of our customers, our employees and our environ-

ment we are firmly resolved to follow further the path of the German

rail reform and carry the successes of the past 20 years into the

future. not all of this is in the hands of our company, as the balance sheet for 2013 clearly shows.

however, Deutsche Bahn is very well prepared for this journey.

Dr. Rüdiger Grube

CEo and Chairman of the Management Board

of Deutsche Bahn AG


The Management Boards of DB AG and DB ML AGA A

45To our sTakeholders ThE MAnAGEMEnT BoARDS oF DB AG AnD DB ML AG

Dr. Heike Hanagarth

rail Technology

born in 1959

appointed until 2016

since 2013 in

deutsche bahn group

A deutsche bahn ag

A db mobility logistics ag

Dr. Richard Lutz

cfo

born in 1964


since 1994 in

deutsche bahn group

A deutsche bahn ag


Gerd Becht

compliance, privacy, legal

affairs and group security

born in 1952


since 2009 in

deutsche bahn group

A deutsche bahn ag


Ulrich Weber

human resources

born in 1950


since 2009 in

deutsche bahn group

A deutsche bahn ag


Dr. Volker Kefer

infrastructure and

services

born in 1956


since 2006 in

deutsche bahn group

A deutsche bahn ag


Ulrich Homburg

passenger Transport

born in 1955


since 2000 in

deutsche bahn group


Dr. Karl-Friedrich Rausch

Transport and logistics

born in 1951


since 2001 in

deutsche bahn group


Dr. Rüdiger Grube

ceo and chairman

born in 1951


since 2009 in

deutsche bahn group

A deutsche bahn ag


information with respect to the cvs are available at:

www.db.de/man-board

from left to right:


MAndAtes of the MeMbers of the MAnAgeMent boArds

Deutsche Bahn AG managemenT board

Dr. Rüdiger Grube

Chief Executive officer and Chairman of the Management Board, Chief Executive officer and Chairman of the Management Board of DB Mobility Logistics AG, hamburga) A DB netz AG 1) (Chairman)

A DEVK Deutsche Eisenbahn Versicherung Lebensversicherungsverein a.G. Betriebliche Sozialeinrichtung der Deutschen Bahn A DEVK Deutsche Eisenbahn Versicherung Sach- und huK-Versicherungsverein a.G Betriebliche Sozialeinrichtung der Deutschen Bahn

b) A Allianz SE (Advisory Board) A Deutsche Bank AG (Advisory Board operating region Stuttgart)

Gerd Becht

Compliance, Privacy, Legal Affairs and Group Security,Member of the Management Board of DB Mobility Logistics AG, Bad homburga) A DB Schenker Rail AG 1)

A Schenker AG 1)

A DB International Gmbh 1)

A DB Sicherheit Gmbh 1)

A DEVK Rückversicherungs- und Beteiligungs-Aktiengesellschaft

b) A DEVK Deutsche Eisenbahn Versicherung Sach- und huK-Versicherungsverein a.G. Betriebliche Sozialeinrichtung der Deutschen Bahn (Advisory Board)

Dr. Heike Hanagarth

Rail Technology,Member of the Management Board of DB Mobility Logistics AG, oberteuringen– Since December 1, 2013 –

Dr. Volker Kefer

Infrastructure and Services,Member of the Management Board of DB Mobility Logistics AG, Erlangena) A DB Energie Gmbh 1) (Chairman)

A DB International Gmbh 1) (Chairman) A DB ProjektBau Gmbh 1) (Chairman) A DB Station & Service AG 1) (Chairman) A DB Systemtechnik Gmbh 1)

b) A DB Dienstleistungen Gmbh 1) (Advisory Board, Chairman)

A DEVK Deutsche Eisenbahn Versicherung Sach- und huK-Versicherungsverein a.G. Betriebliche Sozialeinrichtung der Deutschen Bahn (Advisory Board)

Dr. Richard Lutz

Chief Financial officer,Member of the Management Board of DB Mobility Logistics AG, hoppegarten (Mark)a) A DB netz AG 1)

b) A Arriva Plc, Sunderland/Great Britain 1) (Board of Directors)

Ulrich Weber

human Resources,Member of the Management Board of DB Mobility Logistics AG, Krefelda) A DB Schenker Rail AG 1)

A Schenker AG 1)

A DB Gastronomie Gmbh 1) (Chairman) A DB JobService Gmbh 1) (Chairman) A DEVK Deutsche Eisenbahn Versicherung Lebensversicherungsverein a.G. Betriebliche Sozialeinrichtung der Deutschen Bahn A DEVK Deutsche Eisenbahn Versicherung Sach- und huK-Versicherungsverein a.G. Betriebliche Sozialeinrichtung der Deutschen Bahn A hDI-Gerling Industrie Versicherung AG

b) A DB Zeitarbeit Gmbh 1) (Advisory Board, Chairman) A Sparda-Bank West eG

DB Mobility Logistics AGmanagemenT board

Dr. Rüdiger Grube

Chief Executive officer and Chairman of the Management Board,Chief Executive officer and Chairman of the Management Board of Deutsche Bahn AG, hamburga) A DB netz AG 1) (Chairman)

A DEVK Deutsche Eisenbahn Versicherung Lebensversicherungsverein a.G. Betriebliche Sozialeinrichtung der Deutschen Bahn A DEVK Deutsche Eisenbahn Versicherung Sach- und huK-Versicherungsverein a.G. Betriebliche Sozialeinrichtung der Deutschen Bahn

b) A Allianz SE (Advisory Board) A Deutsche Bank AG (Advisory Board operating region Stuttgart)

47To our sTakeholders ThE MAnAGEMEnT BoARDS oF DB AG AnD DB ML AG

Gerd Becht

Compliance, Privacy, Legal Affairs and Group Security,Member of the Management Board of Deutsche Bahn AG,Bad homburga) A DB Schenker Rail AG 1)

A Schenker AG 1)

A DB International Gmbh 1)

A DB Sicherheit Gmbh 1)

A DEVK Rückversicherungs- und Beteiligungs-Aktiengesellschaft

b) A DEVK Deutsche Eisenbahn Versicherung Sach- und huK-Versicherungsverein a.G. Betriebliche Sozialeinrichtung der Deutschen Bahn (Advisory Board)

Dr. Heike Hanagarth

Rail Technology,Member of the Management Board of Deutsche Bahn AG,oberteuringen– Since December 1, 2013 –

Ulrich Homburg

Passenger Transport, Glashüttena) A DB Fernverkehr AG 1) (Chairman)

A DB Regio AG 1) (Chairman) A DB Vertrieb Gmbh 1) (Chairman) A DEVK Allgemeine Lebensversicherungs-AG


Dr. Volker Kefer

Services,Member of the Management Board of Deutsche Bahn AG,Erlangena) A DB Energie Gmbh 1) (Chairman)

A DB International Gmbh 1) (Chairman) A DB ProjektBau Gmbh 1) (Chairman) A DB Station & Service AG 1) (Chairman) A DB Systemtechnik Gmbh 1)

b) A DB Dienstleistungen Gmbh 1) (Advisory Board, Chairman) A DEVK Deutsche Eisenbahn Versicherung Sach- und huK-Versicherungsverein a.G. Betriebliche Sozialeinrichtung der Deutschen Bahn (Advisory Board)

Dr. Richard Lutz

Chief Financial officer,Member of the Management Board of Deutsche Bahn AG,hoppegarten (Mark)a) A DB netz AG 1)


Dr. Karl-Friedrich Rausch

Transport and Logistics,Weiterstadta) A DB Schenker Rail AG 1) (Chairman) A DB Schenker Rail Deutschland AG 1) (Chairman)

A Schenker AG 1) (Chairman) A DEVK Deutsche Eisenbahn Versicherung Sach- und huK-Versicherungsverein a.G. Betriebliche Sozialeinrichtung der Deutschen Bahn

b) A DB uS holding Corporation, Tarrytown/uSA 1) (Board of Directors)

Ulrich Weber

human Resources,Member of the Management Board of Deutsche Bahn AG,Krefelda) A DB Schenker Rail AG 1)

A Schenker AG 1)

A DB Gastronomie Gmbh 1) (Chairman) A DB JobService Gmbh 1) (Chairman) A DEVK Deutsche Eisenbahn Versicherung Lebensversicherungsverein a.G. Betriebliche Sozialeinrichtung der Deutschen Bahn A DEVK Deutsche Eisenbahn Versicherung Sach- und huK-Versicherungsverein a.G. Betriebliche Sozialeinrichtung der Deutschen Bahn A hDI-Gerling Industrie Versicherung AG

b) A DB Zeitarbeit Gmbh 1) (Advisory Board, Chairman) A Sparda-Bank West eG

1) Mandate within the Group.

a) Membership of other Supervisory Boards required by law.

b) Membership of comparable control committees of German and foreign

commercial enterprises.

Information about mandates is as at December 31, 2013 or the time of

leaving the services of the company in 2013. If appointed after December 31,

2013, the time of appointment is used.


In view of the integrated Group management structure, the

report of the Supervisory Board of Deutsche Bahn AG

(DB AG) also includes, for information purposes only, the

report of the Supervisory Board of DB Mobility Logistics AG

(DB ML AG).

In the year under review, the Supervisory Boards of DB AG

and DB ML AG observed the entire responsibilities incumbent

upon them by virtue of the law, the company’s Articles of

Association and its bylaws. The Supervisory Boards exten-

sively advised and supervised the respective Management

Boards in their management of the companies and business

operations. The Management Boards reported regularly,

without delay and in detail to the Supervisory Boards re -

garding corporate planning and the business, strategic and

financial development of DB AG and its subsidiaries as well

as DB ML AG and its subsidiaries. All significant business

events were discussed by the Supervisory Boards and the

responsible committees based on Management Boards’

reports. Significant deviations in the actual business develop -

ment were explained by the respective Management Board

and examined by the respective Supervisory Board. The

Chairmen of the Supervisory Boards of DB AG and DB ML AG

maintained close contact at all times with the Management

Board Chairman of DB AG and DB ML AG, who regularly

reported on the latest business developments at DB AG

and/or DB ML AG, upcoming business decisions and risk

management.

supervisory boArd Meetings

DB AGThe Supervisory Board of DB AG was involved in all decisions

of fundamental significance for DB AG.

In the year under review, the Supervisory Board of DB AG

met for four ordinary meetings, two extraordinary meetings

and one strategy meeting. Four Supervisory Board members

fully participated in less than half of the meetings held in the

year under review. In six cases, resolutions were adopted by

written ballot. Meetings of the Executive Committee, the

Personnel Committee and the Audit and Compliance Com-

mittee were held in preparation for the meetings of the

Supervisory Board of DB AG.

The main issues discussed in the plenary meetings were the

development of the Deutsche Bahn Group’s (DB Group) rev-

enues, profit and employment situation, as well as signifi-

cant capital expenditures, equity investment and divestment

projects. The Supervisory Board also discussed the strategy

of DB Group and of the Group divisions at its meetings and

at a special strategy meeting. Following the ruling made in

the extraordinary meeting of the Supervisory Board on

March 5, 2013 regarding the continuation of the major Stutt-

gart 21 /Wendlingen–ulm project, the Supervisory Board

intensively dealt with the progress and cost development of

the project in all further meetings during the year under

review. Furthermore, the Supervisory Board discussed the

vehicle situation in rail transport in detail. It addressed the

persistent late delivery of previously ordered rolling stock

for regional and long-distance transport and addressed the

resulting operational and financial consequences and dam-

ages in connection with potential collusion among rail sup-

pliers and resulting damage claims. In addition, the Supervi-

sory Board approved multiple vehicle procurement plans for

rail passenger and rail freight transport. As regards the tem-

porarily reduced schedule in Mainz introduced as a result of

a lack of transport inspectors, the Supervisory Board was

informed in detail about the staffing situation in the Group

and the revision of personnel planning. Furthermore, it inten -

sively addressed issues in the financing of rail infrastructure.

In December, the Supervisory Board approved DB Group’s

budget and capital expenditures planning for the year 2014.

DB ML AGThe Supervisory Board of DB ML AG was involved in all deci-

sions of fundamental significance for DB ML AG.

In the year under review, the Supervisory Board of

DB ML AG met for four ordinary meetings, two extraordinary

meetings and one strategy meeting. Two Supervisory Board

members fully participated in less than half of the meetings

held in the year under review. In three cases, resolutions

were adopted by written ballot. Meetings of the Executive

Report of the Supervisory BoardA A

49To our sTakeholders REPoRT oF ThE SuPERVISoRy BoARD

Committee, the Personnel Committee and the Audit and Com -

pliance Committee were held in preparation for the Supervi-

sory Board meetings.

The main issues discussed in the plenary meetings were

the development of DB Mobility Logistics Group’s (DB ML

Group) revenue, profit and employment situation, as well as

significant capital expenditures, equity investment and

divest ment projects. The Supervisory Board also discussed

the strategy of DB ML Group and of the Group divisions at

its meetings and at a special strategy meeting. Furthermore,

the Supervisory Board discussed the vehicle situation in rail

transport in detail. It addressed the persistent late delivery

of previously ordered rolling stock for regional and long-

distance transport and addressed the resulting operational

and financial consequences and damages in connection with

potential collusion among rail suppliers and resulting damage

claims. In addition, the Supervisory Board approved multiple

vehicle procurement plans for rail passenger and rail freight

transport. As regards the temporarily reduced schedule in

Mainz introduced as a result of a lack of transport inspec-

tors, the Supervisory Board was informed in detail about the

staffing situation in the Group and the revision of personnel

planning. In December, the Supervisory Board approved

DB ML Group’s budget and capital expenditures planning

for the 2014 financial year.

Meetings of the supervisory boArd coMMittees

DB AGThe Supervisory Board of DB AG has established four perma-

nent committees to efficiently facilitate its work. The Super-

visory Board’s Executive Committee met five times in the

year under review and was in regular contact with the Man-

agement Board regarding all major business policy issues. In

its meetings, it focused in particular on preparing the focal

topics for each of the Supervisory Board meetings.

The Audit and Compliance Committee met five times

during the year under review, addressing, in particular, the

Group’s current financial situation and individual business

units, the quarterly and half-year financial statements, the

review findings concerning these, and the half-yearly review

of major capital expenditure projects. The Audit and Compli-

ance Committee discussed the continuation of the major

Stuttgart 21 project and the progress of costs associated with

the project. Furthermore, it addressed changes to internal

reporting, updates in corporate governance as well as changes

in accounting principles and to the internal controlling

system necessitated by the German Accounting Law Mod-

ernization Act (BilMoG). The Committee also prepared the

2013 efficiency tests carried out on a cyclical basis by the

Supervisory Board and reported their results. The Audit and

Compliance Committee also received regular information on

professor dr. dr. uTz-hellmuTh felchT

ChAIRMAn oF ThE SuPERVISoRy BoARD oF DEuTSChE BAhn AG


compliance-related investigations and internal audit find-

ings. In addition, the committee discussed the hiring of an

auditor for the financial statements and the progress of the

auditing process. The Chairman of the Audit and Compliance

Committee was in regular contact with the Chief Financial

officer and the external auditor, and reported regularly and in

detail on the committee’s work to the full Supervisory Board.

The Personnel Committee met seven times in the year

under review to prepare Management Board-related matters

for discussion by the Supervisory Board. In particular, advice

was given on the appointment of Dr. hanagarth as Manage-

ment Board member for Rail Technology during an extraor-

dinary meeting of the Supervisory Board on July 22, 2013 as

well as the reappointments of Mr. Becht and Mr. Weber during

the year under review. Furthermore, the committee prepared

data concerning the Management Board members’ perfor-

mance target attainment for 2012 and the Management

Board’s performance target agreements for the year under

review.

The Mediation Committee established in accordance with

section 27 (3) of the German Co-Determination Act (MitbestG)

did not have occasion to meet in the year under review.

DB ML AGThe Supervisory Board of DB ML AG has established four

permanent committees to efficiently facilitate its work. The

Supervisory Board’s Executive Committee met five times in

the year under review and was in regular contact with the

Management Board regarding all major business policy issues.

In its meetings, it focused in particular on preparing the

focal topics for each of the Supervisory Board meetings.

The Audit and Compliance Committee met five times

during the year under review, addressing, in particular, the

Group’s current financial situation and individual business

units, the quarterly and half-year financial statements and

the review findings concerning these. Furthermore, it ad -

dressed changes to internal reporting, updates in corporate

governance as well as changes in accounting principles and

to the internal controlling system necessitated by the

German Accounting Law Modernization Act (BilMoG). The

Committee also prepared the 2013 efficiency tests carried

out on a cyclical basis by the Supervisory Board and reported

their results. The Audit and Compliance Committee also

received regular information on compliance-related investi-

gations and internal audit findings. In addition, the com-

mittee discussed the hiring of an auditor for the financial

statements and the progress of the auditing process. The

Chairman of the Audit and Compliance Committee was in

regular contact with the Chief Financial officer and the ex -

ternal auditor, and reported regularly and in detail on the

committee’s work to the full Supervisory Board.

The Personnel Committee met seven times in the year

under review to prepare Management Board-related matters

for discussion by the Supervisory Board. In particular, advice

was given on the appointment of Dr. hanagarth as Manage-

ment Board member for Rail Technology during an extraor-

dinary meeting of the Supervisory Board on July 22, 2013 as

well as the reappointments of Mr. homburg, Mr. Becht and

Mr. Weber during the period under review. Furthermore, the

committee prepared data concerning the Management

Board members’ performance target attainment for 2012 and

the Management Board’s performance target agreements

for the year under review.

The Mediation Committee established in accordance with

section 27 (3) of the German Co-Determination Act (MitbestG)

did not have occasion to meet in the year under review.

corporAte governAnce

During the year under review, the Management Boards and

Supervisory Boards of DB AG and DB ML AG again considered

the further development of corporate governance. In a Cab-

inet decision on July 1, 2009, the German Federal Govern-

ment adopted the Public Corporate Governance Code. The

Public Corporate Governance Code outlines key provisions

of applicable law governing the management and supervi -

sion of unlisted companies in which the German government

holds a majority stake, and sets forth internationally and

nationally recognized standards for proper and responsible

corporate governance. The Supervisory Boards of DB AG and

DB ML AG dealt with the application of the Public Corporate

Governance Code within DB Group and adopted the necessary

resolutions.


AnnuAl finAnciAl stAteMents

DB AGThe annual financial statements and management report

for DB AG as prepared by the Management Board and the

consolidated financial statements and Group management

report for the period ending on December 31, 2013 were

audited and awarded an unqualified audit opinion by Price-

waterhouseCoopers AG (PwC), the auditor appointed by

res olution at the Annual General Meeting. The auditor also

reviewed the risk early warning system as part of the annual

audit of the financial statements, noting no objections.

The auditor’s report was reviewed by the Audit and Com-

pliance Committee in its meeting held on March 24, 2014 and

was discussed in full at the Supervisory Board’s financial

statements meeting held on March 26, 2014 in the presence

of the auditors who signed the audit reports. The auditors

reported on the salient audit findings and were available to

answer questions. The Supervisory Board concurred with the

audit findings.

The Supervisory Board reviewed the annual financial

statements and management report of DB AG, the consoli-

dated financial statements and Group management report

for the year under review, and the proposal for the appro-

priation of profits, noting no objections. The DB AG financial

statements for the 2013 financial year were approved and

thereby adopted.

The auditor additionally reviewed the report on relation-

ships with affiliated companies prepared by the Management

Board. The auditors issued an unqualified audit opinion and

reported on their audit findings.

The Supervisory Board also reviewed this report, raising

no objections concerning the Management Board’s con-

cluding declaration contained in the report or the audit con-

ducted by PwC.

DB ML AGThe annual financial statements and management report for

DB ML AG as prepared by the Management Board and the

consolidated financial statements and Group management

report for the period ending on December 31, 2013 were

audited and awarded an unqualified audit opinion by PwC,

the auditor appointed by resolution at the Annual General

Meeting. The auditor also reviewed the risk management sys -

tem as part of the annual audit of the financial statements,

noting no objections.

The auditor’s report was reviewed by the Audit and Compli-

ance Committee in its meeting held on March 24, 2014 and

was discussed in full at the Supervisory Board’s financial

statements meeting held on March 26, 2014, in the presence

of the auditors who signed the audit reports. The auditors

reported on the salient audit findings and were available to

answer questions. The Supervisory Board concurred with the

audit findings.

The Supervisory Board reviewed the annual financial

statements and management report of DB ML AG, the consoli -

dated financial statements and Group management report

for the year under review, and the proposal for the appropri -

ation of profits, noting no objections. The DB ML AG financial

statements for the 2013 financial year were approved and

thereby adopted.

The auditor additionally reviewed the report on relation-

ships with affiliated companies prepared by the Management

Board. The auditors issued an unqualified audit opinion and

reported on their audit findings.

The Supervisory Board also reviewed this report, raising

no objections concerning the Management Board’s con-

cluding declaration contained in the report or the audit con-

ducted by PwC.

chAnges in the coMposition of the MAnAgeMent boArd And the supervisory boArd

DB AGIn the course of changes to the structure of Management

Board divisions that were approved by the Supervisory Board

in 2013 concerning the rearrangement of Rail Technology

and Services and Infrastructure Board divisions, in addition

to the organizational changes in the Board divisions, the

combined management of both Board divisions, which had

to date been the sole responsibility of Dr. Kefer, was ended

and Rail Technology Board division is now headed by its own

Management Board member. In its extraordinary meeting of

July 22, 2013, the Supervisory Board of DB AG appointed

Dr. heike hanagarth as Member of the Management Board

for Rail Technology, and she assumed this role in DB Group

on December 1, 2013.


At the meeting on September 18, 2013, the Supervisory Board

of DB AG reappointed Mr. ulrich Weber to the Management

Board and as Director of Labor Relations effective July 1,

2014 until March 31, 2017. Mr. Weber remains the Manage-

ment Board member in charge of human Resources.

on December 11, 2013, the Supervisory Board reappointed

Mr. Gerd Becht as member of the Management Board for the

Compliance, Privacy, Legal Affairs and Group Security, effec-

tive october 16, 2014 through February 28, 2017.

Ms. ute Plambeck ended her term on the Supervisory

Board effective April 30, 2013 due to her appointment as

Board member of a subsidiary company. Mr. Jürgen Beuttler

was appointed by court order to be her successor effective

August 1, 2013.

Due to his retirement, Dr. hans-Bernhard Beus resigned

from his post effective January 8, 2014.

In addition, Dr. Bernhard heitzer resigned from his post

effective January 29, 2014. Dr. Rainer Sontowski was sec-

onded as successor to the Supervisory Boards of DB AG

effective January 30, 2014.

The Supervisory Board thanks the departing members of

the Supervisory Board for their committed and constructive

support for the company.

The Supervisory Board would also like to thank the Man-

agement Board, the employees and the works council repre-

sentatives of DB AG and its affiliated companies for their

achievements in the year under review.

DB ML AGIn the course of changes to the structure of Management

Board divisions that were approved by the Supervisory

Board in 2013 concerning the rearrangement of Rail Tech-

nology and Services and Infrastructure Board divisions, in

addition to the organizational changes in the Board divisions,

the combined management of both Board divisions, which

had to date been the sole responsibility of Dr. Kefer, was

ended and Rail Technology is now headed by its own Manage -

ment Board member. In its extraordinary meeting of July 22,

2013, the Supervisory Board of DB ML AG appointed Dr. heike

hanagarth as Member of the Management Board for Rail

Tech nology, and she assumed this role in DB ML Group on

December 1, 2013.

on June 19, 2013, ulrich homburg was appointed by the

Super visory Board of DB ML AG as Management Board mem -

ber for the Passenger Transport Board division, effective

June 1, 2014, for five more years until May 31, 2019.

At the meeting on September 18, 2013, the Supervisory

Board of DB ML AG reappointed Mr. ulrich Weber to the Man-

agement Board and as Director of Labor Relations effective

July 1, 2014 until March 31, 2017. Mr. Weber remains the Man-

agement Board member in charge of human Resources.

on December 11, 2013, the Supervisory Board reappointed

Mr. Gerd Becht as member of the Management Board for

Compliance, Privacy, Legal Affairs and Group Security, effec-

tive october 16, 2014 through February 28, 2017.

Mr. horst hartkorn ended his term on the Supervisory

Board of DB ML AG effective September 30, 2013. his suc-

cessor, Ms. heike Moll, was appointed by court order effective

november 29, 2013.

Due to his retirement, Dr. hans Bernhard Beus resigned

from his post effective January 8, 2014.

In addition, Dr. Bernhard heitzer resigned from his post

effective January 29, 2014. Dr. Rainer Sontowski was seconded

as successor to the Supervisory Boards of DB ML AG effective

January 30, 2014.

The Supervisory Board thanks the departing members of

the Supervisory Board for their committed and constructive

support for the company.

The Supervisory Board would also like to thank the Man-

agement Board, the employees and the works council repre-

sentatives of DB ML AG and its affiliated companies for their

achievements in the year under review.

Berlin, March 2014

For the Supervisory Board

Professor Dr. Dr. utz-hellmuth Felcht

Chairman of the Supervisory Board

of Deutsche Bahn AG


CoRPoRATE GoVERnAnCE REPoRT

Corporate Governance reportA A

The Corporate Governance report is a component of the Group management report

Good corporate governance is fundamental to the success of the company

Compliance with recommendations of the Public Corporate Governance Code with one exception

Corporate governance rules are intended to ensure good,

responsible, value-focused company management. on July 1,

2009, the German Federal Government adopted the Public

Corporate Governance Code (PCGK) regulating the princi-

ples of good corporate and investment management. The

PCGK sets out the essential provisions of applicable law gov-

erning the management and monitoring of non-listed com-

panies in which the Federal Republic of Germany holds a

majority stake, while outlining the internationally and nation-

ally acknowledged principles of good and responsible corpo-

rate governance. The objective of the PCGK is to make the

management and oversight of companies more transparent

and easier to understand as well as to establish more pre-

cisely the role of the Federal Government as a shareholder

in such companies. Concurrently, the intention is to increase

awaren ess of good corporate governance.

We are convinced that good corporate governance is fun-

damental to the success of DB Group. our aim is to sustain-

ably increase the value of the company so as to promote the

interests of customers, business partners, investors, employ-

ees and the public, while maintaining and expanding trust

in DB Group.

stAteMent of coMpliAnce

The Management Board and the Supervisory Board of DB AG

hereby issue the following joint statement: “Since the last

statement of compliance was published on March 20, 2013,

DB AG has complied with the recommendations adopted by

the Federal Government on July 1, 2009, concerning the PCGK,

with the exception of point 3.3.2 (the insurance deductible

when taking out D & o liability insurance for the Supervisory

Board). DB AG will continue to comply with the regulations

with the exception mentioned above in the future, until a

decision is reached concerning deductibles for the Supervi-

sory Board.

A Supervisory Board member appointed at the instigation of

the Federal Government exceeds the recommended number

of a total of three memberships of supervisory bodies at one

time, in non-compliance with point 5.2.1 (2) of the PCGK.

This exceeding of recommendations is based on organiza-

tional and functional reasons that can be attributed to the

Federal Government.

The Supervisory Board member will not be prevented

from fulfilling his duties as a member of the Group’s Super-

visory Board because of this, as the Supervisory Board mem -

ber has sufficient time to exercise his roles within DB AG.”

A statement of compliance was also issued by the Man-

agement Board and Supervisory Board of DB ML AG for

DB ML AG with the same exceptions.

DB AG and DB ML AG intend to continue to comply with

the other recommendations of the PCGK in future.

cooperAtion between the MAnAgeMent boArd And supervisory boArd

As a German Aktiengesellschaft ( joint stock corporation),

DB AG and DB ML AG are subject to a two-tier management

and monitoring structure in the form of the Management

Board and Supervisory Board. These two bodies are strictly

segregated in terms of both their membership and their

competencies. The Management Board is solely responsible

for managing the company. The Supervisory Board monitors

the activities of the Management Board and is responsible

for appointing members to, and dismissing members from,

the Management Board.

In the interests of optimum company management, we

see it as very important for the Management Board and the

Supervisory Board to maintain continuous dialog with each

other and to work together efficiently and in an atmosphere

of mutual trust for the benefit of the company. The Manage-

ment Board provides the Supervisory Board with regular,


prompt, comprehensive information on all matters relevant

to the company, particularly those concerning planning, busi-

ness, development, the risk position and risk management, as

well as the internal control system.

An overview of the members of the Management Board

and Supervisory Board [page 46 f. and 287 ff.] of DB AG, including

the mandates they hold, is provided in the notes on the con-

solidated financial statements.

Management BoardThe Management Board is solely responsible for managing

the company. It is required to safeguard the interests of the

company and is committed to achieving sustainable growth

of company value. It specifies the corporate objectives and

defines the strategies to be implemented in order to attain

these objectives. The Management Board is responsible for

making decisions on all matters of fundamental and key

importance for the company.

The Management Board of DB AG consists of six divisions.

As well as the division of the CEo, the Management Board

also encompasses the following divisions: Finance/Control-

ling, human Resources, Technology, Infrastructure and Ser-

vices as well as Compliance, Data Protection, Legal and Group

Security.

The Management Board of DB ML AG consists of eight divi-

sions. As well as the division of the CEo, the Management

Board also encompasses the following divisions: Finance/

Controlling, human Resources, Passenger Transport, Trans-

port and Logistics, Compliance, Data Protection, Legal and

Group Security, Technology and Services.

The Management Board members must discuss any con-

flicts of interest with the Supervisory Board immediately and

must also notify their colleagues on the Management Board

of these. There were no conflicts of interest during the year

under review. In order to ensure integrated Group manage-

ment, the meetings of the Management Board of DB AG are

generally held jointly with those of the Management Board

of DB ML AG.

Supervisory BoardThe Supervisory Board advises and monitors the Manage-

ment Board in its management of the company.

In line with the requirements of the German Co-Determi-

nation Act (MitbestG), the Supervisory Board of DB AG con-

sists of 20 members, of whom ten members are shareholders’

representatives and ten members are employees’ represen-

tatives. Some of the shareholders’ representatives are sec-

onded to the Supervisory Board and some are elected at the

Annual General Meeting. The employees’ representatives on

the Supervisory Board are elected in line with the require-

ments of the Co-Determination Act. one woman is currently

serving on the Supervisory Board of DB AG.

In line with the requirements of the German Co-Determi-

nation Act, the Supervisory Board of DB ML AG consists of 12

members, of whom six members are shareholders’ represen-

tatives and six are employees’ representatives. The share-

holders’ representatives are elected at the Annual General

Meeting. The employees’ representatives on the Supervisory

Board are elected in line with the requirements of the Co-

Determination Act. There are currently two women serving

on the Supervisory Board.

The Chairman of the Supervisory Board of DB AG and

DB ML AG is Professor Dr. Dr. utz-hellmuth Felcht. Personal

or business relationships [page 272 ] of the individual Supervi-

sory Board members of each company are stated in the notes

to the consolidated financial statements.

The Supervisory Board members must discuss any con-

flicts of interest with the Supervisory Board immediately and

must also provide the Supervisory Board with information

about any such conflicts. There were no conflicts of interest

during the year under review.

Transactions of fundamental importance and other Man-

agement Board decisions with a major impact on the busi-

ness activities and on the asset position, financial position

or profit situation of the company require the authorization

of the Supervisory Board. The Management Board reports

to the Supervisory Boards of DB AG and DB ML AG on the

development of business and the position of the Group at

least once every quarter. The Management Board also reports

to the Supervisory Board regularly on all measures imple-

mented within the company that are intended to ensure

compliance with laws and corporate regulations (compli-

ance). In addition to the auditing and approval of the com-

pany’s annual financial statements, the tasks of the Super-

visory Board include auditing the company’s management

report. the consolidated financial statements and the Group

management report. The Supervisory Board also monitors the

accounting process, the effectiveness of the internal control

system, the risk management system and the internal revision

system, as well as the process of auditing the annual finan-

cial statements.

55To our sTakeholders CoRPoRATE GoVERnAnCE REPoRT

In addition, the Chairman of the Supervisory Board is in reg-

ular contact with the Management Board and specifically the

Chairman of the Management Board to discuss company

strategy, business development and risk management. The

Chairman of the Supervisory Board receives regular reports

from the Chairman of the Management Board on all events

that are of key importance for assessing the company’s situ-

ation and development, as well as for its management.

There were no consultancy agreements or other compa-

rable service agreements or contracts for services between

the members of the Supervisory Board and DB AG or between

the members of the Supervisory Board and DB ML AG in the

2013 financial year.

JoinT supervisory board meeTings

The Supervisory Board of DB AG and the Supervisory Board

of DB ML AG meet regularly with the aim of increasing the

efficiency of the consultation process. Resolutions of the

respective Supervisory Board are adopted by their members.

The possibility still exists for separate Supervisory Board

meetings to be held.

supervisory board commiTTees

In order to enable the Supervisory Board to carry out its

monitoring activities to the best of its abilities, the Supervi-

sory Boards of DB AG and DB ML AG have made use of the

option of setting up further committees in addition to the

Mediation Committee, which has to be set up in accordance

with the Co-Determination Act. The Supervisory Boards have

each created an Executive Committee, an Audit and Compli-

ance Committee and a Personnel Committee. A list of the

members of these committees [page 289 ] can be found in the

notes to the consolidated financial statements. The Supervi-

sory Board reports on the work of the committees [page 49 f.]

in the year under review in its report. Details of the functions

of the individual committees [www.db.de/committees] can be

found on our Web site.

trAnspArency

All important information regarding the consolidated and

annual financial statements, the interim report, the financial

calendar and information on reportable security transactions

can be found on our Web site [www.db.de/ir-e]. In addition, we

provide regular information on current developments within

the framework of our investor relations activities and corpo-

rate communication.

risk MAnAgeMent

Good management also encompasses a responsible approach

to the risks and opportunities arising in connection with busi-

ness operations. The early identification and limitation of

business risks is therefore of paramount importance to the

Management Board and the Supervisory Board.

The Management Board is responsible for ensuring ade-

quate risk management and monitoring this within the com-

pany, and for continuously improving both of these things.

The German Accounting Law Modernization Act (Gesetz zur

Modernisierung des Bilanzrechts; BilMoG) precisely defines

the responsibilities of the Supervisory Board with regard to

monitoring the accounting process and ensuring the effec-

tiveness of the internal control system, the risk management

system and the internal audit system. For the Supervisory

Board to be able to discharge this responsibility, it must be

provided with suitable information based on which it can

form an opinion on the adequacy and effectiveness of the

systems. Regular reports are made to the Audit and Compli-

ance Committee concerning the adequacy and effectiveness

of the internal control system. In addition, the Management

Board reports to the Audit and Compliance Committee re -

garding risks of major importance to the Group companies

and the handling of these risks by the Management Board. It

also monitors whether the early-warning risk system com-

plies with the requirements of section 91 (2) of the German

Stock Corporation Act (Aktiengesetz; AktG).

coMpliAnce

Compliance management within DB Group is responsible for

ensuring Group-wide compliance with laws and rules. It is a

key element of our corporate culture. The company’s activi-

ties are subject to national and international legal require-

ments alongside values and rules established by the com-

pany itself. The corporate values of the Group are collated

in a code of conduct applicable throughout the Group. The

aim of this code of conduct is to support DB Group executive


bodies and employees in their compliance with and imple-

mentation of rules regarding society, competitors, officials

and business partners, and the owner, and in their dealings

with each other. our employees and senior executives receive

training on the content of the code of conduct and on the

relevant laws and rules within the framework of our various

training programs in line with a risk-based approach. The

senior executives of the divisions and the relevant organiza-

tional units are responsible for ensuring that they themselves,

and their employees, comply with the relevant regulations.

In order to ensure that corporate organization is consis-

tent with the relevant regulations, the compliance manage-

ment system has been further developed with a clear focus

on prevention, particularly in regard to the decentralized

structures in place in the business units and subsidiaries.

Additional information on the topic of compliance [www.db.de/

compliance] can be found on our Web site.

Accounting And Auditing

on March 22, 2013, the Annual General Meetings of DB AG

and DB ML AG appointed PricewaterhouseCoopers Aktien-

gesellschaft Wirtschaftsprüfungsgesellschaft (PwC), Berlin,

as auditor for the 2013 financial year. The Audit and Compli-

ance Committees prepared the proposals of the Supervisory

Boards regarding the election of the auditor and, following

the election of the auditor by the Annual General Meeting,

defined the key audit aspects in conjunction with the auditor.

once again this year, it was agreed with the auditor that the

Chairman of the Audit and Compliance Committee will be

notified of any possible reasons for exclusion or prejudice that

emerge in the course of the audit, if these cannot be resolved

immediately. It was also agreed that the Chairman of the

committee will be notified immediately by the auditor of any

separate findings and any irregularities in the statement of

compliance.

efficiency Audit of the supervisory boArd

The Supervisory Board regularly monitors the efficiency of

its activities. An efficiency audit is carried out every two

years. The last efficiency audit took place in 2013.

coMpensAtion report

The compensation report outlines the compensation system

and lists the individual compensation of the members of the

Management Board and the Supervisory Board.

Compensation system of the Management BoardThe compensation system for the Management Board of

DB AG and DB ML AG aims to provide appropriate compen-

sation to the Management Board members in accordance

with their duties and areas of responsibility, while at the

same time directly taking into account the performance of

each Management Board member and the success of the

company.

The appropriate level of compensation is reviewed regu-

larly using a comparison process. This review examines the

level of Management Board compensation both in compar-

ison to the external market (horizontal appropriateness) and

in comparison to other levels of compensation within the

company (vertical appropriateness). If the review shows a

need to adjust the compensation system or the level of com-

pensation, the Personnel Committee of the Supervisory Board

submits its proposals in this regard to the Supervisory Board

for approval. The next review of the adequacy of compensa-

tion is scheduled to take place in the first half of 2014.

Compensation componentsThe total compensation for Management Board members

consists of fixed basic compensation, a performance-linked

annual director’s fee and a long-term bonus program based

on multiyear figures (long-term incentive plan). Total com-

pensation also includes benefit commitments, other commit-

ments and ancillary benefits.


Fixed basic compensation is cash compensation linked to

the financial year. It is based on the scope of responsibility

and the experience of each Management Board member. The

indi vidually defined fixed income is paid out in 12 equal in -

stallments.

The annual performance-linked director’s fee is calcu-

lated using a factor linked to the achievement of business

targets (director’s fee factor) and the achievement of indi-

vidual targets (performance factor). There is a multiplicative

link between the director’s fee factor and the performance

factor. The director’s fee factor depends on the level of suc-

cess in attaining the business goals set out by corporate

planning. The parameters for this relationship are, in equal

parts, operational success (operating income after interest)

and return on capital employed (RoCE).

The performance factor reflects success in meeting per-

sonal targets. The target fee corresponds to the annual

director’s fee paid to the Management Board member in a

“normal financial year” for fully meeting performance goals

(meeting targets). If company profits do not meet planned

objectives, the director’s fee factor can in extreme cases be

reduced to zero, regardless of personal performance. This

means that the annual director’s fee can be zero. If planned

objectives are sufficiently exceeded and the maximum per-

formance factor is also achieved, the annual director’s fee

can amount to 2.6 times the target director’s fee.

The business and personal targets of the Management

Board members are decided by the Supervisory Board each

year based on recommendations from the Personnel Com-

mittee, and are then agreed in writing with the Management

Board members.

Together with the corporate planning adopted by the

Supervisory Board, the personal targets form the basis for

assessing the annual director’s fee. This means that all of the

key parameters for total compensation are established at the

beginning of the financial year.

At the end of each financial year, the director’s fee and the

personal performance factor are calculated for each Man-

agement Board member based on Group results. Target

income is attained if both Group and individual targets have

been met in full. The final decision on this matter is made

by the Supervisory Board and is prepared by the Personnel

Committee.

The long-term incentive element is determined based on

the sustained increase in the value of the company. This basis

for calculation rewards the attainment and/or exceeding of

the profit targets included in the mid-term planning and the

effects of these on the company’s value. After the end of each

planning period, the increase in value achieved in compar-

ison to the company’s original planning, and the payment

amount, are calculated. A peer-group comparison is then

used to adjust the payout ratio of the long-term incentive to

reflect the external performance of the company compared

with a peer group. The term of each plan is four years.

The payment amount for the long-term incentive plan

has an upper limit and can vary between 0 and 300 %. Claims

from the long-term incentive plan are inheritable.

The Management Board members are entitled to an ap -

propriate severance fee if their contract is terminated before

the stipulated termination date provided that the Manage-

ment Board member was not personally responsible through

his or her actions for the termination. The severance fee is

based on the remaining term of the contract, the agreed

target compensation and, where applicable, the pension ben-

efits already owed by DB AG or DB ML AG for the remainder

of the contract.

In accordance with the recommendations of the PCGK, a

severance fee cap is included in all contracts of members of

the Management Boards of DB AG and DB ML AG. This cap

means that payments made to a Management Board member

due to premature termination of Management Board duties

cannot, without good cause as defined by section 626 of the

German Civil Code (Bürgerliches Gesetzbuch; BGB), exceed

the value of two years’ salary, including variable compensation

components, and must not provide compensation for more

than the remaining term of the employment agreement.

Management Board members do not receive any addition-

al compensation for mandates exercised in control bodies of

Group companies or affiliated companies.


pension enTiTlemenTs

The Supervisory Boards of DB AG and of DB ML AG have set

a general retirement age of 65 for Management Board mem-

bers. After leaving the company, Management Board mem-

bers are entitled to pension payments. A Management Board

member is entitled to a lifelong pension if the term of employ-

ment ends due to permanent invalidity or if the contract is

terminated before the agreed termination date or is not ex -

tended, where the Board member was not responsible for

the termination, or if the Management Board member refuses

to continue the contract under the same or more beneficial

conditions.

Company pension commitments are based on a percent-

age of basic compensation depending on the length of time

that the Management Board member has been with the com-

pany. Pension commitments include lifelong retirement and

surviving dependent benefits. There is no lump-sum payment

option.

In addition, for Management Board member contracts

entered into before January 1, 2009, a reinsurance policy was

concluded to cover company pension benefits.

conTracTual ancillary benefiTs

The contractual ancillary benefits for members of the Man-

agement Board include a company car with driver for busi-

ness and personal use, a personal BahnCard 100 First free

travel card and standard insurance coverage. A housing

allowance is provided for second homes where these are

required for business purposes. Where these non-cash ben-

efits cannot be granted on a tax-free basis, they are taxed

as non-monetary benefits for which the Management Board

members are fully responsible. Management Board members,

like any other member of the Group’s executive staff, can

choose to take part in the company’s deferred compensation

program.

The members of the Management Board are covered by

liability insurance against financial losses incurred due to

working for DB AG and/or DB ML AG (D & o insurance). In the

2013 financial year, this insurance was offered as a Group

insurance policy with a legally established deductible. It pro-

vides coverage for potential financial losses that could arise

from carrying out Management Board activities. The insur-

ance cover of the existing D & o insurance policy is valid for

a period of five years after termination of activities as a

member of the Management Board.

Compensation for the 2013 financial yeardb ag managemenT board

The director’s fee for the 2013 financial year is due at the end

of the month in which the company’s Annual General Meeting

takes place. The long-term incentive is first paid following

the expiry of the tranche first issued in 2010 with a four-year

term following the end of the 2013 financial year.

The members of the DB AG Management Board will receive

the following compensation for their duties during the year

under review:

Total compensation of the Management Board [€ thousand]

Fixed compen-

sation

Variable compensation

Other 3) TotalShort-term 1)

Long- term 2)

Dr. Rüdiger Grube 900 436 310 18 1,664

Gerd Becht 650 261 197 33 1,141

Dr. Heike Hanagarth 4) 33 16 9 4 62

Dr. Volker Kefer 650 250 181 18 1,099

Dr. Richard Lutz 588 248 185 26 1,047

Ulrich Weber 650 261 197 9 1,117

Total 3,471 1,472 1,079 108 6,130

1) Subject to the decision of the Supervisory Board.2) Long-term variable compensation refers to additions to and releases

of provisions for long-term incentives.3) Non-cash benefits accruing from travel benefits and usage of company cars,

and insurance and housing allowances.4) Dr. Heike Hanagarth was appointed as a new member of the

Management Board as of December 1, 2013.

db ml ag managemenT board

The director’s fee for the 2013 financial year is due at the end

of the month in which the company’s Annual General Meeting

takes place. The long-term incentive is first paid following

the expiry of the tranche first issued in 2010 with a four-year

term following the end of the 2013 financial year.

The members of the DB ML AG Management Board will

receive the following compensation for their duties during

the year under review:

IncumbenT member s of The managemenT board of db ag a s of december 31 , 201 3


Total compensation of the Management Board [€ thousand]

Fixed compen-

sation

Variable compensation

Other 4) TotalShort-term 2)

Long-term 3)

Dr. Rüdiger Grube 1) – – – – –

Gerd Becht 1) – – – – –

Dr. Heike Hanagarth 1) – – – – –

Ulrich Homburg 525 233 171 29 958

Dr. Volker Kefer 1) – – – – –

Dr. Richard Lutz 1) – – – – –

Dr. Karl-Friedrich Rausch 688 274 198 21 1,181

Ulrich Weber 1) – – – – –

Total 1,213 507 369 50 2,139

1) Dr. Grube, Mr. Becht, Dr. Kefer, Dr. Lutz, Mr. Weber and Dr. Hanagarth did not receive separate compensation for their activities within DB ML AG.

2) Pending decision by the Supervisory Board.3) Long-term variable compensation refers to additions to and releases

of provisions for long-term incentives.4) Non-cash benefits accruing from travel benefits, usage of company cars,

and insurance and housing allowances.

no member of the Management Board of DB AG or DB ML AG

received any benefits or promises of benefits from third par-

ties related to his activities as a Management Board member


pension benefiTs of The managemenT

board in The 2013 financial year

DB AG Management Board

During the year under review, an amount totaling € 3,523

thousand was added to the pension provisions.

Additions to pension provisions (service costs) [€ thousand] 2013

IncumbenT member s of The managemenT board of db ag In The 201 3 fInancIal year

Dr. Rüdiger Grube 1,078

Gerd Becht 806

Dr. Heike Hanagarth 1) 52

Dr. Volker Kefer 419

Dr. Richard Lutz 178

Ulrich Weber 991

Total 2) 3,523

1) Dr. Heike Hanagarth was appointed as a new member of the Management Board as of December 1, 2013.

2) Possible differences are due to rounding.

Pension provisions for former members of the Management

Board are shown in total in the notes on the consolidated

financial statements.

DB ML AG Management Board

During the year under review, an amount totaling € 812 thou-

sand was added to the pension provisions.

Additions to pension provisions (service costs) [€ thousand] 2013

IncumbenT member s of The managemenT boar d of db ml ag In The 2 0 1 3 fInancIal ye ar

Dr. Rüdiger Grube 1) –

Gerd Becht 1) –

Dr. Heike Hanagarth 1) –

Ulrich Homburg 229

Dr. Volker Kefer 1) –

Dr. Richard Lutz 1) –

Dr. Karl-Friedrich Rausch 582

Ulrich Weber 1) –

Total 2) 812

1) Dr. Grube, Mr. Becht, Dr. Kefer, Dr. Lutz and Mr. Weber as well as Dr. Hanagarth did not receive separate pension commitments for their activities within DB ML AG.


Compensation of the Supervisory Board for the 2013 financial yeardb ag supervisory board

Compensation of the Supervisory Board of DB AG was most

recently regulated by the Annual General Meeting decision

of September 21, 2010. In addition to being reimbursed for

their cash outlays and the value-added tax due on their com-

pensation and cash outlays, the Supervisory Board members

each receive a fixed annual compensation of € 20,000 plus

performance-linked annual compensation. The performance-

linked compensation is calculated based on the relationship

between operational results (EBIT) for the financial year

compared to the previous year’s figures, and the attaining of

specific operational performance figures. Performance-linked

compensation is limited to a maximum of € 13,000. The Chair-

man of the Supervisory Board receives double this amount,

while his deputy receives one and a half times the above

figure. This compensation is increased by a quarter for every

position held on a committee by the individual Supervisory

Board member. Compensation increases by 100 % for being

Chairman of the Executive Committee or the Audit and Com-

pliance Committee, and by 50 % for being Chairman of the

Personnel Committee. This does not include membership or

chairmanship of the committee that is required under the

terms of section 27 (3) of the MitbestG.

IncumbenT member s of The managemen board of db ml ag a s of december 31 , 201 3


In addition, the members of the Supervisory Board of DB AG

receive an attendance fee of € 250 for each meeting of the

Supervisory Board and its committees at which they are pres-

ent. Supervisory Board members can also choose between a

personal BahnCard 100 First and five free train tickets.

The members of the Supervisory Boards of both compa-

nies are covered by liability insurance against financial losses

incurred by risks arising from the business activities of DB AG

(D & o insurance). This insurance is designed as a Group insur -

ance policy with no deductible and provides coverage for

financial losses that may occur during the performance of

Supervisory Board activities. There is also a Group accident

insurance policy in place for members of the Supervisory

Board. The relevant company pays the premiums for these

policies.

Supervisory Board members who have only been members

for part of the financial year in question receive a twelfth of

the total compensation (equivalent to the amount payable

per month) for each month or part of a month of their mem-

bership. This rule also applies to the increase in compensation

for the Chairman of the Board and his or her deputy and to

the increase in compensation for membership and chairman-

ship of a Supervisory Board committee.

Payment takes place after the conclusion of the Annual

General Meeting that votes to ratify the Supervisory Board’s

activities in the previous financial year.

Taxes due on compensation received, including the per-

sonal BahnCard 100 First or the five free train tickets, are the

individual responsibility of each Supervisory Board member.

Supervisory Board members currently hold no shares in the

company, nor do they hold options entitling them to purchase

shares in the company.

Subject to the approval of the activities of the Supervisory

Board by the Annual General Meeting on March 26, 2014, the

members of the Supervisory Board of DB AG will receive the

following compensation for their activities during the year

under review:

Total compensation of the Supervisory Board [€ thousand]

Annual income 2013

Fixed compen-

sation

Variable compen-

sationAtten-

dance feesAncillary services Total 1 )

Prof. Dr. Dr. Utz-Hellmuth Felcht 70.0 – 3.8 – 73.8

Alexander Kirchner 40.0 – 3.5 6.9 50.4

Dr. Hans Bernhard Beus 20.0 – 2.5 – 22.5

Jürgen Beuttler 8.3 – 0.5 – 8.8

Christoph Dänzer-Vanotti 20.0 – 1.5 6.9 28.4

Patrick Döring 20.0 – 1.5 – 21.5

Dr.-Ing. Dr. E. h. Jürgen Großmann 20.0 – 1.3 6.9 28.1

Dr. Bernhard Heitzer 20.0 – 2.8 – 22.8

Jörg Hensel 25.0 – 3.0 1.0 29.0

Klaus-Dieter Hommel 20.0 – 1.8 6.9 28.7

Wolfgang Joosten 20.0 – 1.8 6.9 28.7

Dr. Jürgen Krumnow 40.0 – 3.0 1.0 44.0

Prof. Dr. Knut Löschke 20.0 – 1.5 6.9 28.4

Vitus Miller 20.0 – 1.5 1.0 22.5

Fred Nowka 20.0 – 1.8 – 21.8

Michael Odenwald 35.0 – 4.3 1.0 40.3

Mario Reiß 20.0 – 1.5 6.9 28.4

Regina Rusch-Ziemba 25.0 – 2.3 6.9 34.1

Jens Schwarz 30.0 – 3.8 1.0 34.8

Dr.-Ing. E. h. Dipl.-Ing. Heinrich Weiss 20.0 – 0.8 6.9 27.7

Ute Plambeck 6.7 – 0.5 – 7.2

Total 1 ) 520.0 – 45.0 67.1 632.1

Compensation for further mandates in DB subsidiaries 114.9

Total 746.1


no pension commitments exist for Supervisory Board

members.

The members of the Supervisory Board did not receive

any compensation in the year under review for any person-

ally provided services.

IncumbenT member s of The supervIsory board of db ag a s of december 31 , 201 3

supervIsory board member s ThaT lefT The supervIsory board of db ag durIng The year under revIew


db ml ag supervisory board

Compensation of the Supervisory Board of DB ML AG is set

out in Article 15 of the Articles of Association and was most

recently regulated by the Annual General Meeting decision

on September 21, 2010. In addition to being reimbursed for

their cash outlays and the value-added tax due on their com-

pensation and cash outlays, the Supervisory Board members

each receive fixed annual compensation of € 5,000. The Chair-

man of the Supervisory Board receives double this amount,

while his deputy receives one and a half times the above

figure. This compensation is increased by a quarter for every

position held on a committee and by half for each chairman-

ship of a committee. This does not include membership or

chair manship of the committee that is required under the

terms of Section 27 (3) of the MitbestG.

In addition, the members of the Supervisory Board of

DB ML AG receive an attendance fee of € 250 for each meeting

of the Supervisory Board and its committees at which they

are present.

The members of the Supervisory Boards of both compa-

nies are covered by liability insurance against financial losses

incurred by risks arising from the business activities of

DB ML AG (D & o insurance). This insurance is designed as a

Group insurance policy with no deductible and provides cov-

erage for financial losses that may occur during the perfor-

mance of Supervisory Board activities. There is also a Group

accident insurance policy in place for members of the Super-

visory Boards of both companies. The relevant company pays

the premiums for these policies.

Supervisory Board members who have only been members

for part of the financial year in question receive a twelfth of

the total compensation (equivalent to the amount payable

per month) for each month or part of a month of their mem-

bership. This rule also applies to the increase in compensa-

tion for the Chairman of the Board and his or her deputy and

to the increase in compensation for membership and chair-

manship of a Supervisory Board committee.

Payment takes place after the conclusion of the Annual

General Meeting that votes to ratify the Supervisory Board’s

activities in the previous financial year.

Taxes due on compensation received are the individual respon -

sibility of each Supervisory Board member.

Supervisory Board members currently hold no shares in

the company, nor do they hold options entitling them to pur -

chase shares in the company.

Subject to the approval of the activities of the Supervisory

Board by the Annual General Meeting on March 26, 2014, the

members of the Supervisory Board of DB ML AG will receive

the following compensation for their activities during the

year under review:

Total compensation of the Supervisory Board [€ thousand]

Annual income 2013

Fixed compen-

sation

Variable compen-

sationAtten-

dance feesAncillary services Total 1 )

Prof. Dr. Dr. Utz-Hellmuth Felcht 15.0 – 3.8 – 18.8

Alexander Kirchner 7.5 – 3.5 – 11.0

Dr. Hans Bernhard Beus 5.0 – 2.5 – 7.5

Wolfgang Erler 6.3 – 2.5 – 8.8

Dr. Bernhard Heitzer 5.0 – 2.8 – 7.8

Margarita Kiefer 6.3 – 3.0 – 9.3

Dr. Jürgen Krumnow 7.5 – 3.0 – 10.5

Heike Moll 0.8 – 0.3 – 1.1

Michael Odenwald 8.8 – 4.3 – 13.0

Helmut Polzer 5.0 – 1.5 – 6.5

Dr.-Ing. E. h. Dipl.-Ing. Heinrich Weiss 5.0 – 0.8 – 5.8

Wolfgang Zell 10.0 – 2.8 – 12.8

–

Horst Hartkorn 3.8 – 1.3 – 5.0

Total 1 ) 86.0 – 34.7 – 120.7

Compensation for further mandates in DB subsidiaries 3.9

Total 121.4


no pension commitments exist for members of the Supervi-

sory Board of DB ML AG.

The members of the Supervisory Board of DB ML AG did

not receive any compensation in the year under review for

any personally provided services.

IncumbenT member s of The supervIsory board of db ml ag a s of december 31 , 201 3

supervIsory board member s ThaT lefT The supervIsory board of db ml ag durIng The year under revIew


investor relAtions

An essential goal of our investor relations work is to ensure

targeted, sustained communication with investors, analysts

and ratings agencies. We therefore provide regular, compre-

hensive, timely information on our financial activities and

the development of DB Group.

In the year under review, we have continued to pursue

our investor relations activities focused. This also meant that

we were involved in active dialog with existing and potential

new investors and ratings agencies through events and indi-

vidual meetings in Europe and Asia. At the center of this

dialog is the introduction of our DB2020 strategy, our busi-

ness and our financing strategy.

our investor relations activities have laid the foundations

for the successful issue of eight bonds plus the increase of

two existing bonds during the year under review. All of these

bonds continued to be met with great interest from interna-

tional investors.

After focusing our activities in the previous year mainly

on our first issue in pounds sterling and a bond with an

unusually long maturity of 60 years, during the year under

review we were again active in the broader market. Reflecting

this, demand for our bonds was more widely distributed

regionally, and in the year under review mainly came from

Germany, Great Britain, Switzerland and Japan. In the pre-

vious year, the regional focal points of our investors were in

Great Britain as well as Switzerland and Germany.

Investors can find comprehensive information about

DB Group and our bond issues on our investor relations Web

site [www.db.de/ir-e]. We publish all of our annual and interim

reports online. our investor relations Web site also contains

corporate presentations, FAQs, and extensive details of our

capital market activities and our ratings. A special newsletter

provides automatic, up-to-the-minute information by e-mail.

you will find information on how to contact us on the back

page of this report and on our investor relations Web site.

rAtings

Ratings DB AGFirst

issuedLast con-

firmation

Current ratings

Short-term Long-term Outlook

Standard & Poor’sMay 16,

2000Mar 3,

2014 A–1+ AA stable

Moody’sMay 16,

2000Mar 4,

2014 P–1 Aa1 stable

FitchFeb 17,

2009Dec 23,

2013 F1+ AA stable

As of: March 4, 2014.

The creditworthiness of DB Group is constantly monitored

and assessed by the rating agencies Standard & Poor’s (S & P),

Moody’s and Fitch. Credit ratings provide an independent,

up-to-date assessment of a company’s creditworthiness. When

calculating ratings for DB AG, the ownership structure means

that the rating agencies take into account not only the quan-

titative and qualitative analysis of the company, but also an

assessment of the relationship to our owner, the Federal

Republic of Germany, and the potential support that DB AG

could receive from the German Federal Government. This

means that the ratings given to the Federal Republic of Ger-

many are also significant for the ratings given to DB AG.

There were no changes to the assessment of DB AG by

the rating agencies S & P, Moody’s and Fitch during the year

under review.

Please see our Web site for additional information on rat-

ings [www.db.de/rating-e] and the rating agencies’ complete

analy ses for DB AG.

Financial communicationA A

Investor relations activities stepped up

Ratings confirmed in year under review

Bond issues in the amount of € 2.4 billion

63To our sTakeholders FInAnCIAL CoMMunICATIon

bond issues

Through our financing subsidiary Deutsche Bahn Finance

B.V. (DB Finance), Amsterdam/the netherlands, we issued

eight new bonds and increased two bonds for a total value

of € 2.4 billion. These bonds were used among other things

to refinance a maturing bond for more than € 750 million, and

for repayment of interest-free loans and finance lease lia-

bilities. We also increased our holdings of cash and cash

equivalents.

our 2013 public euro bonds in the amount of € 500 million

with a term of ten years, and in the amount of € 300 million

with a term of seven years, were placed for the most part in

Germany. There was also great demand from investors in

Scandinavia and the Benelux countries. A five-year private

placement of over € 300 million with variable interest was

issued in Japan, and so was a variable interest issue over uSD

250 million with a similar term. The same was true of a private

placement of over € 50 million with a long term of 15 years.

A further public placement of noK 1,500 million with a 12-year

term was conducted with a norwegian investor. our bonds are

also highly popular in Switzerland, so we have also tapped

the Swiss franc market again as we did in the previous year.

Two tranches placed a total of ChF 475 million in Switzer-

land. We also used the GBP market again after the successful

debut in the previous year. This segment, along with the

euro market, offers high demand for long-term securities.

We were able to place GBP 425 million (in two tranches) with

a term of 13 years.

Bond issue volume [€ billion]

2013 2.4

2012 2.2

2011 2.1

2010 2.5

2009 2.2

2008 0.0

2007 0.6

Bond issues 2013

ISIN Issuer CurrencyVolume

(million) Coupon Maturity Term in years

XS0879065588Deutsche Bahn

Finance B.V. EUR 3003M-EURIBOR

+ 43 February 2018 5


Finance B.V. EUR 50 2.657 February 2028 15


Finance B.V. NOK 1,500 3.985 March 2025 12

CH0212937251Deutsche Bahn

Finance B.V. CHF 275 1.375 July 2023 10


Finance B.V. GBP 300 3.125 July 2026 13


Finance B.V. EUR 500 2.500 September 2023 10

CH0212937251Deutsche Bahn

Finance B.V. CHF 200 1.375 July 2023 9.7


Finance B.V. EUR 300 1.75 November 2020 7


Finance B.V. USD 250 3M-Libor + 42 February 2019 5.25


Finance B.V. GBP 125 3.125 July 2026 12.6


coMpliAnce

Compliance is an integral component of the corporate and

management culture in DB Group. To us, compliance means

ensuring our business activities comply with all of the rele-

vant laws and regulations that apply to them.

our compliance activities focus on preventing corruption

and other corporate crime, and the consistent fight to combat

these. Mandatory compliance policies serve to protect

DB Group, our employees, executives and the responsible

committees. They create a reliable frame work for making the

right decisions on difficult issues in our day-to-day operations.

Raising the awareness of our employees and executives

continues to be of great importance. only employees who

are aware of risks can recognize and also successfully avoid

or at least reduce them.

The Audit and Compliance Committee of the Supervisory

Board has defined compliance as a key area for the moni-

toring of the internal control system. Building on this, after

an audit was carried out in 2012 of the compliance organiza-

tion that confirmed the adequacy and effectiveness of ex -

isting controls, audits of the compliance management system

were expanded to the subsidiaries of DB Group.

Expansion of compliance instruments ☺Compliance risk and compliance process analyses continued

to be a focus in the year under review. Awareness-raising

concepts were further developed and a new contribution

policy was implemented.

The IT-supported compliance risk analysis of DB Group

enables the accurate, systematic analysis of our compliance

risks. They are associated with individual companies or areas

within DB Group. Targeted risk minimization measures were

negotiated according to the results. Global implementation

will be carried out in cooperation with the executives of busi-

ness units with the goal of continuing to deter corporate

crime, conflicts of interest, anti-competitive practices and

other risks. In the year under review, we have developed a

risk atlas for all business units. This gives an overview of

potential risks in Germany and abroad. The atlas portrays on

maps the worldwide risk situation with respect to corruption,

corporate crime, as well as rule of law, but also the observa-

tion of human rights, for example related to forced labor.

This also enables an evaluation of potential strategic expan-

sions of business activities. In addition, it provides an over-

view of the individual risks specific to business units, which

the applicable risk-reduction countermeasures take into

account.

Compliance initiative for DB ServicesIn the framework of compliance initiative for services, com-

plementary measures for all areas of the business units of

DB Services were approved and implemented. The goal is the

protection of DB Group, especially from corruption and fraud.

A number of core business-specific risk and process analyses

were carried out alongside targeted, tailored awareness-

raising measures and a review of typologies for preventative

assessment.

Compliance of business partners strengthenedSuccessful long-term compliance work requires the careful

selection of business partners and suppliers who must then

be informed of the DB Group values and commit to collabo-

ration based on shared values. In the year under review, a

Compliance and privacy reportA A

The Compliance and privacy report is a component of the Group management report

Compliance of business partners strengthened

Expansion of international data protection

65To our sTakeholders CoMPLIAnCE AnD PRIVACy REPoRT

code of conduct for business partners was implemented for

the DB Group supplier management. The compliance area

developed a customized e-learning program to support busi-

ness partners.

We are also an important presence and partner of the

Initiativkreis Korruptionsprävention (Corruption Prevention

Initiative) in which standards for businesses and public admin-

istration are developed and set.

Group works council agreement whistle-blower management takes effecton April 1, 2013, Group works council agreement for whistle-

blower management took effect. honest whistle-blowers

providing tips are to be protected through exemplary pro-

cesses. The interests of those affected are also taken into

account through specific requirements of conclusiveness

and seriousness of the tips. The Group works council agree-

ment is unique in international comparison with respect to

the processing of tips.

The electronic whistle-blower system is available to all

employees, business partners, and third parties in seven lan-

guages. ombudspersons, who as lawyers are legally bound

to confidentiality, are available as contact persons in Berlin,

Frankfurt am Main and Munich for contact and consultation

concerning corruption, fraud and cartels involving DB Group.

Whistle-blowers can also contact the DB Group whistle-

blower management team.

Trade complianceIn the year under review, we have increased our consulta-

tions about and development of concepts concerning export

controls and foreign trade law. Potential risks are taken into

account, which arise from the increasing internationalization

and expansion of business activities of DB Group, which go

beyond the established business of transport and logistics.

Focus on compliance with antitrust law Executives and employees are made aware and trained about

the topic of cartels in ongoing DB Group-wide in-person

training events. The training style is customized according

to the requirements of the business units. The target group

is all executives and employees of DB Group who have con-

tact with competitors or for other reasons hold positions that

are relevant for competition. The e-learning program updated

in the year under review explained the most relevant aspects

of antitrust laws for each specific business unit.

System for prevention of damages from cartels implementedIn the year under review, development of a comprehensive

system to prevent damage from cartels was completed. The

aim is to minimize the risk of DB Group from becoming the

victim of anticompetitive agreements, and to react quickly

and effectively in cases where anticompetitive acts by sup-

pliers are suspected. The system for prevention of damages

from cartels employs a three-stage approach. At first, risks

of anticompetitive practices for procurement are identified.

For this, purchasing agents are made aware of the risks of

anticompetitive practices in procurement procedures. next,

the corresponding risks are evaluated and classified. These

risks are minimized with targeted defensive measures, which

at the same time lead to an increase in competition. The

journal “Compliance” designated the DB Group system for

prevention of damages from anticompetitive activity as the

“Compliance Idea of the year” in the year under review.

privAcy

We want to establish exemplary, innovative and sustainable

data protection in DB Group. our aim is that in the context

of data protection, our customers, business partners and

employees will associate us with trust, respect, transparency

and integrity. The upholding of legal rules, company codes

and collective wage agreements as well as internal regula-

tions relevant for data protection are for us a matter of

course. In keeping with this basic understanding, the data

protection organization of DB Group is continually adjusted

to the requirements for data protection so that complete

support is guaranteed.


Further development of specialized qualifications and use of new mediaThe assurance of specialized qualifications through various

training formats was a key assignment within the data pro-

tection organization in the year under review. In addition, an

e-learning program was designed in order to assure the

widest possible diffusion of knowledge in DB Group about

data protection. A new print product, “Data Protection Com-

pass,” was published. This offers the possibility to have an

overview of data protection in DB Group also for employees

without Internet access.

Information and telecommunications technology (ITK) and information securityIn the year under review, a working group for information

security (AK Informationssicherheit) was established. In this

working group, the areas DB Group Data Protection, DB Group

Security and CIo organization, particularly ITK Security, dis-

cuss current topics and internal revisions, and coordinate

joint measures. In the year under review, workshops and

training events were established and conducted and were

augmented by communications media such as an intranet

blog.

Group works council agreement and project consultation guarantee sustainable data protection for employeesThe data protection organization consulted on important

works agreements in the year under review. The focus of

consultation was once again the topic of social media both

in the external presentation of DB Group as well as in com-

munication and networking among employees. Technolog-

ical developments in mobile devices and cloud computing

also played a large role in consultations.

Exemplary customer data protection for healthy business – now and in the futureThe effects of customer data protection in the year under

review were marked by the monitoring of innovative develop-

ments as well as the support for the opening of new market

opportunities. The task was to assure in a professional and

sustainable manner transparency in the use of data, the bal-

ance between commercial interest and the protection of the

right to a private sphere, and respectful handling of cus-

tomer desires and concerns. The upcoming SEPA conversion,

video monitoring in trains and train stations, and assuring

data processing of a legitimate interest in passenger rights

matters were the focus of consultations. At the same time our

increased social media activities and the changing mobility

needs of our customers necessitated intensive legal support

concerning data protection.

Audit concept established Group-wide and developed furtherThe first audit of processes and systems relevant for data

protection for customers and employees was able to be com-

pleted successfully in the year under review. The precondi-

tions for regular follow-up audits were created thereby in the

national DB Group companies. In addition, we developed a

concept for the systematic audit of DB Group internal and

external service providers. The survey of our executives was

carried out according to schedule also in the year under

review through our self-auditing instrument DoM (Data pro-

tection online Monitoring). It met with a strong response and

yielded good results.

International data protection expandedWe continued to expand the organization of data protection

in the international environment in the year under review as

well. In a cross-area working group of DB Group data protec-

tion, current data protection topics with an international

dimension from each department were handled uniformly

across DB Group. In this committee, DB Group-wide stan-

dards were also developed. International topics are already

taken into account in the ongoing consultation activities.

Data Protection Board as important motivatorThe Data Protection Board, founded in 2010, is an important

and established motivator and consultation partner in all

relevant data protection questions in DB Group. Continuing

its previous work, in the year under review the Data Protec-

tion Board firmly and systematically analyzed, evaluated and

worked out the details of current challenges of exemplary,

DB Group-wide data protection.

The work of the Board is moreover an important contri-

bution to our stakeholder management [page 89 ] in the sense

of the sustainability approach.

BGroup management reportB68 Overview

68 Economic68 Social69Environmental69 Assessment of the economic situation BGroup management

report

68 overview

68 economic 68 Social 69 environmental 69 Assessment of the

economic situation

70 DB Group

70 DB Group structure 78 Business model 84 Corporate strategy and management 89 Sustainability management 90 Social responsibility 91 Sponsoring

92 BuSineSS AnD overAll

ConDitionS

92 economic environment 95 Developments in the

relevant markets 101 political environment

105 eConomiC poSition

105 results of operations 112 Financial position 113 value management 117 Statement of cash flows 117 net financial debt 118 Capital expenditures 119 Balance sheet

122 CuStomer AnD quAlity

122 Customer and quality initiative continues

122 improvements launched with passenger advisory board

122 Development of punctuality 123 Customer satisfaction 123 measures to improve the quality

of products and services 125 Awards

126 SoCiAl

126 Development of the number of employees

128 implementation of the Hr2020 program

135 environmentAl

135 environmental management 135 reduction of emissions 140 noise reduction 141 material and resource efficiency 142 reduced water consumption 142 Conservation measures

implemented

144 Development oF BuSineSS unitS

144 passenger transport 145 overview of business units 158 transport and logistics 167 Services 168 infrastructure

180 ADDitionAl inFormAtion

180 purchasing volume down 181 Additional issues related

to operations and business operations

183 opportunity AnD riSk report

183 management assessment of the risk situation

183 opportunity and risk management within DB Group

184 opportunities report 187 risk report

193 eventS AFter tHe BAlAnCe

SHeet DAte

194 outlook

194 Future direction of DB Group 194 economic outlook 195 Anticipated development of the

relevant markets 197 Anticipated development of the

procurement and financial markets 197 Anticipated development of

important business conditions 197 Anticipated development of

DB Group 199 Anticipated capital expenditures 199 Anticipated financial position 200 overall statement of the

management Board regarding the economic development of DB Group

K

68 DeutSCHe BAHn Group 2013 AnnuAl REpORt

Economic

Selected key figures [€ million] 2013 2012

Change

absolute %

Punctuality in passenger transport (rail ) in Germany (%) 94.1 94.6 – –

Passengers (rail and bus) (million) 4,355 4,120 +235 + 5.7

Passengers (rail ) in Germany (million) 2,016 1,974 + 42 +2.1

Volume sold passenger transport (rail ) (million pkm) 88,746 88,433 + 313 + 0.4

Volume sold passenger transport (bus) (million pkm) 1) 8,375 8,421 – 46 – 0.5

Volume sold freight transport (million tkm) 104,259 105,894 – 1,635 – 1.5

Train kilometers on track infrastructure (million train-path km) 1,035 1,039 – 4 – 0.4

Shipments in European land transport (thousand ) 95,543 95,325 +218 + 0.2

Air freight volume (export) (thousand t) 1,092 1,095 – 3 – 0.3

Ocean freight volume (export) (thousand TEU) 1,891 1,905 – 14 – 0.7

Revenues adjusted 39,119 39,296 – 177 – 0.5

Revenues comparable 39,165 39,293 – 128 – 0.3

EBITDA adjusted 5,139 5,601 – 462 – 8.2

EBIT adjusted 2,236 2,708 – 472 – 17.4

Net profit for the year 2) 649 1,459 – 810 – 55.5

ROCE (%) 6.8 8.3 – –

Redemption coverage (%) 20.5 22.1 – –

Net financial debt as of Dec 31 16,362 16,366 – 4 –

Gross capital expenditures 8,224 8,053 + 171 +2.1

Net capital expenditures 3,412 3,487 –75 –2.2

1) Excluding DB Arriva.2) Previous yearʼs figure adjusted.

the market and competitive environment [page 92 ff.] was highly

challenging in the year under review. this was also reflected in

our business development [page 105 ff. and 144 ff.]. the year under

review was also characterized by a series of negative effects,

such as the severe winter, flooding and the tense situation with

regard to the availability of vehicles. As a result, there was a

fall in punctuality in rail transport in Germany. Overall, the

level of customer satisfaction [page 123 ] remained stable across

the business units, however it was also affected by the conse

quences of the floods in the area of passenger transport.

the prevailing general conditions negatively impacted

the performance of all our business units and thus also the

development of revenues in the year under review. Addi

tional negative factors were notable increases in costs in the

areas of personnel, maintenance and energy, which particu

larly affected the performance of the DB netze track business

unit.

the development in the business units resulted in a slight

fall in revenues and in significantly lower profits.

the slightly lower net capital expenditures were financed

out of current cash flow with the result that net financial

debt [page 117 f.] remained at the previous yearʼs level.

Social

In the year under review, we came one step closer to at

taining our goal of becoming one of the top employers † in

Germany by 2020.

We pressed on ahead with the process of developing our

corporate culture [page 131 ]. Following our first DB Groupwide

employee survey in 2012, our focus in the year under review

was firmly on driving forward the followup process and we

are additionally continuing to work on improving our appeal

as an employer [ page 128 f.] . More flexible working hour

models such as semi-retirement arrangements [page 133 ] and

more childcare options [page 133 f.], as well as the systematic

develop ment of skilled employees and management talent

[page 129 ff.] from within the company are intended to en cour

age employ ees to remain with DB Group over the long term.

Our nationwide employer branding campaign launched

in novem ber 2012 showed initial success, with the average

number of job applications received per month increasing

discernibly.

¿ æ

OverviewA A

Business development unsatisfactory

Progress made in pursuit of goal of becoming a top employer

Further strengthening of environmental position

K

69Group mAnAGement report OvERvIEW

We were extremely active in the labor market [ page 128 f.] ,

hiring a total of about 11,500 new employees and taking on

some 2,400 trainees in Germany. About 3,800 trainees began

vocational training or dayrelease study programs at DB Group

in the year under review.

We also proceeded with the establishment of a new lead-

ership concept [page 131 ] throughout DB Group. this included

integrating the system of targets for our DB2020 strategy

into our variable salary components [page 133 ].

the negotiations with our union [page 132 f.], the Railway and

transport Workers union (EvG), produced satisfactory results

in the year under review. the innovative demographics

collective bargaining agreement concluded with the EvG

in the previous year became effective on April 1, 2013 and,

among other things, addresses the areas of action flagged up

by the employee sur vey carried out in 2012. no agreement

was reached with the German train Driversʼ union (GDl) in

the year under review.

EnvironmEntal

We want to expand our leading position with regard to envi

ronmental issues. therefore we are first and foremost pur

suing issues which are of central significance for us, such as

the reduction of our energy consumption [page 135 ff.] and the

specific reduction of CO₂ emissions [page 135 ff.], the reduction

of rail noise pollution [page 140 f.] and greater efficiency in our

use of resources [page 141 f.].

A central aspect of our endeavors in this regard is in

creasing the proportion of renewable energy used for traction

power in Germany, with the proportion of the total amount

of power procured represented by renewable energy already

amounting to about 35 % in the year under review. As a result

of the conclusion of a further long-term supply agreement

[page 177 ] for ecopower, the proportion of renewable energy

used is set to rise further in the years ahead.

In addition, we attach importance to the use of modern,

energy-efficient vehicles [ page 137 ff.] and the testing of new

technologies [page 137 ff.]. In the year under review, we com

missioned additional vehicles powered by hybrid systems

[page 138 ] or liquefied biogas [page 138 ] and also energy-effi-

cient electrical locomotives [page 138 ].

We set up a new range of green products for our custom

ers, making particular progress in the area of longdistance

transport with the introduction of green products using

100 % ecopower. In addition, we further extended our range

of electrical vehicles [page 139 f.].

We came one step closer to reaching our goal of noise reduc

tion. the accreditation of the ll brake shoe in June 2013

con stituted a milestone in our activities to reduce the noise

[page 140 f.] produced by freight cars. this refitting project is

also reinforced by the newly introduced noise-based train-

path pricing system [page 170 ].

In the context of resource efficiency [ page 141 f.] , we are

continually implementing optimization measures and take

our responsibility of environmental protection [page 142 f.] very

seriously.

aSSESSmEnt of thE Economic Situation

the performance of DB Group in the year under review was

not satisfactory. We are facing considerable challenges in the

areas of economy, market, competition and cost structures in

the 2014 financial year, and the ongoing delays in the delivery

of new vehicles is causing additional tension. Material aspects

of the future infrastructure financing have yet to be budgeted

by the Federal Government and given form by way of contrac

tual arrangements. Overall, the Management Board of DB AG

considers the economic situation of DB Group as of the date

of the preparation of this report to be difficult yet positive.

Developments in the economy, which is only gradually

showing signs of recovery, had an adverse effect on our ac

tivities in transport and logistics. In Germany, higher specific

factor costs for personnel, energy and maintenance together

with sluggish revenues negatively impacted the overall profit

situation, which was also exposed to two further negative

effects due to a severe winter and the flood.

the development of the key financial figures essentially

corresponds with the forecasts contained in our Interim

Report January to June 2013.

We are pressing forward with the implementation of our

DB2020 strategy introduced in 2012 and our goal of be

coming a profitable market leader ≈, a top employer † and an

eco-pioneer ¥.

In the 2014 financial year, we anticipate that there will be

moderate economic stimulus for our business activities, and

the markets which are of relevance for our business should

perform more favorably than in the year under review.

the business development of DB Group was as expected

at the beginning of the 2014 financial year and the Manage

ment Board therefore remains of the view that revenues and

adjusted EBIt will develop in line with the statements made

in the Outlook [page 194 ff.].

K

CEO and Chairman CFOCompliance, Privacy,

Legal Affairs and Group Security

Human Resources Rail TechnologyInfrastructure and

Services

Business units

DB Netze Track

DB Netze Stations

DB Netze Energy

DB Mobility Logistics sub-group

CEO and Chairman CFOCompliance, Privacy,

Legal Affairs and Group Security

Human Resources

Rail Technology Passenger Transport Transport and Logistics Services

Group functions

Service functions

Deutsche Bahn Group

Business units

DB ServicesDB Schenker Rail

DB Schenker Logistics

DB Bahn Long-Distance

DB Bahn Regional

DB Arriva

70 DB Group70 DB Group structure78 Business model84 Corporate strategy and management89 Sustainability management90 Social responsibility91 Sponsoring

70 Deutsche Bahn Group 2013 AnnuAl RepoRt

DB Group structure

Deutsche Bahn AG (DB AG) has been a stock corporation in

accordance with German law since it was founded in 1994

and has a dual management and controlling structure com

prising a Management Board and Supervisory Board.

Deutsche Bahn Group (DB Group) is a globally active

company. Its headquarters are in Berlin. other important

locations [page 79 ] in Germany are Frankfurt am Main, essen

and Mainz. Internationally, we have offices in Sunderland/

Great Britain, Singapore, new York /uSA and Dubai/united

Arab emirates, among other locations.

the business portfolio of DB Group consists of nine busi-

ness units [ page 144 ff.] , organized into the divisions of pas

senger transport, transport and logistics, Infrastructure, and

Services, managed in an integrated way. the business units

are responsible for conducting business operations. our

structure is completed by central Group and service func

tions, some of which are performed by DB AG, while others

are carried out by DB Mobility logistics AG (DB Ml AG).

DB AG manages the DB netze track, DB netze Stations

and DB netze energy business units directly. the remaining

six business units are consolidated under the management

of DB Ml AG within the DB Mobility logistics Group (DB Ml

Group). Within DB Group, DB AG and DB Ml AG both func

tion as management holding companies that lead the Group.

the Group functions (legal Affairs, Strategy, Controlling

and treasury, amongst others) support the Management

Board and ensure the unity of management within DB Group.

the service functions (including the DB Environment Center

[page 135 ]) perform support activities.

DB GroupA A

Integrated group structure with two management holdings

Further implementation of the DB2020 strategy

Clear strategic focus of the operating divisions

Organizational structure DB Group

K

71Group manaGement report DB GRoup

In order to ensure an integrated Group management ap

proach, the DB AG Management Board’s meetings are usu

ally held concurrently with the meetings of the DB Ml AG

Management Board. Details of this can be found in the Cor-

porate Governance report [page 53 f.].

An overview of DB Group holdings [page 275 ff.] can be found

in the notes to the consolidated financial statements.

Changes in the Board division structureAs of July 1, 2013, the previous Rail technology and Services

Board division was restructured. Beside the business unit

Services, DB International and DB Systemtechnik were newly

assigned to the Infrastructure Board division. the sole man

agement (since 2009) of both the Rail technology and Ser

vices and Infrastructure Board divisions by the same director

was thereby ended. the new Rail technology Board division

consists of the areas procurement, environment, technology,

Security and Quality Management, CIo DB Group, program

Management and Division Control, Commercial Division Con

trol and noise protection.

Rail Technology Board division Within DB Group, the new Rail technology Board division is

responsible for developing efficient technology, innovation,

quality and environmental strategies for the rail system based

on its technological expertise.

It addresses, for example, the following key technical

issues:

A quality improvement, ontime performance and availabil

ity of new rolling stock,

A the permit process for rebuilt existing rolling stock,

A pooling of purchasing needs of DB group worldwide,

A effective It solutions.

seconD DB InnovatIon Workshop

In the summer, the DB Innovation Workshop was carried out

for the second time. the themes of prototyping and design

thinking, which means making innovations visible, were the

focus of the workshop with external companies such as

Deutsche telekom and General electric. the interactive plat

form “Moving IDeAS” was also launched at the same time. At

the european Rail Congress in november 2013, the approach

of a platform for innovation about mobility and logistics that

goes beyond the boundaries of the company and is devel

oped further in a community was awarded a prize in the

category “Best partnership of the Year.”

research anD Development

As a service organization, DB Group does not conduct its own

research and development in the strict sense. However, the

division initiates enduseroriented development based on

technical competence and operator experience. We also sup

port the industry through broadbased testing operations.

Changes in DB GroupchanGes In the executIve BoDIes

of DB aG anD DB ml aG

the Supervisory Board approved the ending of sole manage

ment of the Rail technology and Services Board division with

the Infrastructure Board division. Dr. Volker Kefer has since

then been responsible for the Infrastructure and Services

Board division. In July 2013, Dr. Heike Hanagarth was ap

pointed to the Management Board for the new Rail technol

ogy Board division. Dr. Hanagarth assumed her new duties

on December 1, 2013. Accordingly, the Supervisory Board has

appointed her through november 30, 2016. In June 2013,

ulrich Homburg was appointed as Management Board mem

ber of DB Ml AG for the passenger transport Board division,

effective June 1, 2014, for five more years until May 31, 2019.

In September 2013, ulrich Weber was reappointed as mem

ber of the Management Board and Human Resources Direc

tor of DB AG and DB Ml AG. His contract now runs through

March 31, 2017.

In December 2013, Gerd Becht was reappointed as mem

ber of the Management Board of DB AG and DB Ml AG for

the Compliance, privacy, legal Affairs and Group Security

Board division, effective october 16, 2014 through February

28, 2017.

ute plambeck ended her term on the Supervisory Board

effective April 30, 2013. Jürgen Beuttler was appointed by

court order to be her successor effective August 1, 2013.

Due to his retirement, Dr. Hans Bernhard Beus resigned

from his posts on the Supervisory Boards of DB AG and

DB Ml AG, effective January 8, 2014.

In addition, Dr. Bernhard Heitzer resigned from his posts

on the Supervisory Boards of DB AG and DB Ml AG effective

January 29, 2014. Dr. Rainer Sontowski was seconded as suc

cessor to the Supervisory Boards of DB AG and DB Ml AG

effective January 30, 2014.

Horst Hartkorn ended his term on the Supervisory Board

of DB Ml AG effective September 30, 2013. His successor,

Heike Moll, was appointed by court order effective novem

ber 29, 2013.

K


m & a actIvItIes

DB Arriva business unit

A In May 2013, DB Ml AG took over all shares in Veolia trans

port Central europe GmbH (Veolia eastern europe),

which was previously part of the French Veolia transdev

Group. the purchase price was € 152 million. As a result,

DB Arriva became the largest international operator of

passenger transport in eastern europe, and expanded its

existing business in poland, Slovakia and the Czech

Republic. Croatia, Serbia and Slovenia were added as new

markets. the number of countries throughout europe in

which DB Arriva is active increased to 14. Veolia eastern

europe has been included in the consolidated financial

statements since May 1, 2013.

A As a longterm joint venture partner of Centrebus Hold

ings limited, DB Arriva increased its previous minority

share to 100 % by acquiring 56.1 % of the shares. Centre

bus has 360 employees and operates over 150 buses. the

company operates bus transports in West Yorkshire and

the east Midlands in england. DB Arriva expands its pres

ence in this region through the majority holding. the

purchase price for the shares was € 1.4 million. Centrebus

Holdings limited has been included in the consolidated

financial statements since September 1, 2013.

A to expand its business further in the Czech Republic,

DB Arriva acquired 100 % of the Czech bus operations

pRoBo BuS a.s. and Abellio CZ from the Dutch Abellio

in november 2013. the companies had about 200 employ

ees and operated more than 110 buses in 2012. DB Arriva

had already entered the Czech bus market in 2006. Sub

sequently DB Arriva has been able to expand its market

share further through acquisitions. the purchase price was

a total of € 9 million. the company has been included in

the consolidated financial statements since December 31,

2013.

A DB Arriva acquired 51 % of the shares in Zeta Automotive

limited, Bicester/united Kingdom in December 2013.

the company specializes in the development and manu

facture of products that assist in saving fuel. With the

acquisition, DB Arriva intends to expand its role as eco-

pioneer ¥. the purchase price for the shares was € 3.5 mil

lion. Zeta Automotive has been included in the consoli

dated financial statements since December 31, 2013.

DB Schenker Logistics business unit

A In March 2013, DB Schenker logistics acquired 100 % of

the shares in longterm partner euroline panamericana

(panama) S.A., panama City/panama. the purchase price

was € 2 million. DB Schenker will continue to expand the

business of euroline in one of Central America’s growth

markets under the name Schenker (panama), S.A. Schen

ker (panama), has been included in the consolidated

financial statements since April 1, 2013.

A In June 2013, DB Schenker logistics acquired 49 % of long

term network partner Salem Freight International, Abu

Dhabi/united Arab emirates. the purchase price was

€ 7 million. Despite the minority holding, control is exer

cised by DB Group as a result of contractual regulations.

the company has been operating under the name Schen

ker logistics l.l.C. since the beginning of June. up to this

point, DB Schenker logistics had been present in Dubai

with a joint venture. With this acquisition, services to the

united Arab emirates, one of the most promising eco

nomic regions in the Middle east, have been expanded.

Schenker logistics l.l.C. has been included in the con

solidated financial statements since June 1, 2013.

DB Netze Track business unit

A With the agreement of February 20, 2013 (closing on

March 14, 2013), Deutsche umschlaggesellschaft Schiene

Straße (DuSS) mbH increased its holding in MegaHub

lehrte and now holds 75 % of the shares.

Corporate Governance report and Compliance and privacy reportthe Corporate Governance report [page 53 ff.] and the Compli-

ance and privacy report [ page 64 ff.] are components of the

Group management report.

Business and financial relationships in DB GroupWithin DB Group, because of strong operative interconnec

tions and dependencies, there are business and financial

relationships between the holding companies and the busi

ness units, as well as between business units.

these can be organized into four groups:

K


A operational business relationships: direct business rela

tionships between two operating companies, which may

arise through the use of infrastructure, such as when

DB Regio AG uses the rail network of DB netz AG against

trainpath usage charges.

A Business relationships due to Group and service func

tions: both management holdings are responsible for

providing services for the operating companies, such as

central purchasing, which organizes and controls among

others the procurement process for multiple units for

DB Fernverkehr AG.

A Group financing: the two management holdings perform

and consolidate the financing function in DB Group. In

this context, DB AG procures funds on the capital market

through its subsidiary Deutsche Bahn Finance [ page 112 ]

and transfers these funds as loans to the Group compa

nies that require capital.

A Domination and profit and loss transfer agreements: in

Germany, domination and profit and loss transfer agree

ments are used for the formation of a fiscal unit that

allows companies to offset tax losses against profits. In

DB Group, the company ultimately subject to tax in Ger

many is DB AG. this also reduces administration costs, as

only DB AG is required to complete tax returns in Ger

many, meaning that the tax authorities have only one

point of contact and can conduct comprehensive audits.

the “at armʼs length” principle serves as the fundamental

characteristic of the development of business relationships.

this means that the compensation is always oriented to

market prices. In DB Group, this applies to operational busi

ness relationships, service functions and Group financing.

For example, DB Schenker Rail AG pays exactly the same

prices for utilization of trainpaths as external rail freight

companies. the prices for intraDB Group purchased services

(such as It services) are reviewed regularly on the basis of

market surveys to ensure that prices are in line with the

market. the terms of financing transactions are based on pre

vailing market conditions in the finance and capital markets.

payment is relinquished entirely if services are not directly

attributable. this is particularly the case for Group functions

such as strategy or communication. In order to prevent dis

tortions or arbitrary demands for payment, the costs of ser

vice rendered are borne by the respective holding companies

and not passed on. this means that Group companies pay no

general intraGroup charges for these services. the costs are

initially borne by DB AG or DB Ml AG and subsequently offset

with profits within the scope of the profit and loss transfer

agreements of the subsidiaries.

the reasons and motivation for aligning the costs of busi

ness relationships in DB Group with market conditions are

as follows:

A A valuebased corporate management approach can only

be achieved if it is embedded at all levels in DB Group.

this, in turn, can only be achieved on the basis of fair mar

ket conditions. Success and failure must be transparent in

order to facilitate economic control.

A performancebased remuneration for employees and

man agement also takes place at the company level and is

therefore dependent on the conditions pertaining to busi

ness relationships. Incentives must be based on trans par

ent and fair conditions.

A the infrastructure companies are legally required to pro

vide their services without discrimination. the Federal

network Agency assesses whether prices are in line with

the market. prices are transparent for everyone.

A Alignment of business relationships with market condi

tions is also both necessary and required for tax reasons

or from the perspective of minority shareholders.

the effects of domination and profit and loss transfer agree

ments within DB Group on profits and payments are not

qualified as business relationships, but are a consequence of

DB Group’s status as a domestic contract Group and the asso

ciated rights and obligations of all the incorporated domestic

companies.

Operational business relationships the most extensive operative business relationships arise

from the use of the rail infrastructure and the procurement

of energy from DB netze energy. Charges for the use of

infrastructure are based on the corresponding pricing sys

tems and are the same for nonGroup customers (trainpath

pricing system, facility pricing system and station pricing

system). this includes purchasing of traction energy (diesel

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Fundamental DB intra-Group relationships.

DB Bahn SalesA Ticket sales

DB Netze ProjectsA Project planning and management

DB Bahn Long-Distance,DB Bahn Regional, DB Arriva

A Business tripsA Employee trips

DB Schenker Rail, DB Schenker LogisticsA Constructional transports and logisticsA Other transport and logistics services

DB Netze TrackA Train-path utilization A Facility utilization

DB Netze StationsA Station utilization

DB Netze EnergyA Traction current A Stationary energy A Diesel

DB Group-wide labor market

DB ServicesA IT Services A Telematics A Facility management A Vehicle maintenance A Fleet service A Security A Vehicle cleaning


fuel and traction current) as well as electricity for stationary

facilities (such as switch heaters and train preheating

systems).

the main expenses arising from business relationships

between the various DB Group business units for services

rendered in infrastructure are illustrated in the table below:

Business relationships for services rendered in infrastructure within DB Group in 2013 [€ million]

DB Bahn Long-

DistanceDB Bahn Regional

DB Arriva

DB Schenker

Rail


DB Services

DB Netze Track

DB Netze

Stations

DB Netze

Energy

Subsid- iaries /

other

Train-path utilization 805 2,142 1 433 0 0 – 3,385 0 0 4

Utilization of local infrastructure 27 56 0 139 0 1 –225 0 2 0

Station utilization 95 541 0 0 0 0 – 6 – 630 0 0

Energy settlement 346 807 0 372 0 29 165 97 – 1,840 24

other operational business relationships result from the con

solidation of service functions (DB Bahn Sales and DB Ser

vices) in the broader sense for the purpose of concentrating

expertise and increasing efficiency and productivity. In the

infrastructure segment, DB projektBau GmbH carries out

planning and project management for the DB netze track,

DB netze Stations and DB netze energy business units.

Operational business relationships in DB Group

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Service functionsA Personnel recruitment

A DB TrainingA ...

Business units InfrastructureA DB Netze TrackA DB Netze StationsA DB Netze Energy

Group functionsA Finance/Controlling

A ComplianceA Group marketing

A ...

DB Mobility Logistics AG

Business units DB ML GroupA DB Bahn Long-Distance A DB Bahn Regional A DB Arriva A DB Schenker Rail

A DB Schenker Logistics A DB Services

Service functionsA Purchase

A Corporate Real Estate ManagementA DB JobService

A ...

Deutsche Bahn AG

Group functionsA Corporate development

A CommunicationA Technology

A ...

Group functions that are not directly attributable and not offset. Service functions that can be assigned and charged due to direct business relationship.


Business relationships due to Group and service functionsthe two management holdings DB AG and DB Ml AG incor

porate various Group and service functions that, apart from

a few regulatory exceptions, perform functions for the entire

DB Group. the costs for Group functions are not transferred

to the business units (no “general intraGroup charges”).

Charges for service functions are only transferred if these

result from direct business relationships with the business

units or expenditure that is directly attributable to a tangible

service. this applies in particular to transferal of real estate,

central purchasing and technology services, insurance provi

sions consolidated under DB AG as well as the separate allo

cation of costs for DB Ml Group’s use of trademarks.

the costs that accrue for the holding companies as a

result of nonpayment of general intraGroup charges are

offset by transferring profits and dividends from the respec

tive subsidiaries.

the Group job market performs an important central

function. DB JobService and the agency staff unit DB Zeit

arbeit ensure efficient deployment of personnel within the

Group job market and regulate measures for incentives to

employment.

Group financing the Group Treasury [page 112 ] at DB AG is responsible for Group

financing. the treasury operates throughout DB Group as

an inhouse bank, although it provides a service function

rather than acting as a profit center. In accordance with the

Group’s twotier structure, the treasury is also based on a dual

structure, which separates the activities for DB Ml Group

from those for DB Group’s infrastructure companies. All Group

companies have business relationships with the treasury,

mainly borrowing and investment of funds and the pooling

of liquidity. treasury transactions are conducted at fair market

rates, meaning that the agreed interest rates are in line with

the rates quoted by banks when not intended to yield a profit.

DB Groupʼs internal business relationships from Group and service functions

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Money market

Market interest

Market interest + credit surcharge

Market interest + credit surcharge

Market interest

Market interest

Market interest

Capital market

Infrastructure

A DB Netze Track

A DB Netze Stations

A DB Netze Energy

A DB Netze Projects

DB ML Group

Deutsche Bahn AG

DB Finance

A DB Bahn Long-Distance

A DB Bahn Regional

A DB Arriva

A DB Schenker Rail

A DB Schenker Logistics

A DB Services

A DB Bahn Sales


Fair market rates also mean in this case that the credit mar

gins are adjusted in line with the creditworthiness. the credit

margin for the infrastructure companies is largely in line

with the credit margins of DB AG on the financial and capital

market. the credit margins for DB Ml AG and DB Ml Group

companies are higher, based on DB Ml Group’s internal per

formancebased credit rating and the credit margins quoted

on the capital market.

All financial transactions are based on contractual agree

ments. If a DB Group company invests cash flow surplus at

DB Ml AG, the respective company remains the owner of these

funds and has an interestbearing financial claim against

DB Ml AG. these outstanding accounts are due and payable

immediately, except in the case of fixedterm deposits.

Consolidation of the Group finance function in DB AG gives

us a coherent market presence in the financial and capital

markets, and allows us to achieve economies of scale and

cost benefits that the individual companies are unable to

generate. In addition, central Group financing enables us to

adequately monitor all financial transactions and achieve

comprehensive risk management.

Group financing

Profit and loss transfer and domination agreements profit transferred and losses offset do not constitute busi

ness relationships. Rather, the profit and loss transfer agree

ment stipulates that the amount of profit distributed or the

amount required to offset losses is not reset every year but

is calculated automatically. the flow of capital is based on

the shareholder’s right to profits or obligation to compen

sate losses. Regardless of this, DB Group ensures that all

Group companies have sufficient capital stock despite the

obligation to offset potential losses generated by other com

panies within the Group.

K

Transferring profits and capital measures. Tax group; integration into the profit and loss transfer agreements of

DB AG with automatic transfer of profits and compensation of losses.


Dividend

Federal Republic of Germany (owner)

Infrastructure

A DB Netze Track

A DB Netze Stations

A DB Netze Energy

A DB Netze Projects

Deutsche Bahn AG

A DB Bahn Long-Distance

A DB Bahn Regional

A DB Arriva

A DB Schenker Rail

A DB Schenker Logistics

A DB Services

A DB Bahn Sales


With regard to financial relationships, it is important to note

that interest payments and profit transfers are based on eco

nomically viable decisions and are necessary for funding

capital expenditures. Investors are only willing to provide

capital if amortization and returns are secured. A purely

debtbased financing model is not marketable and is associ

ated with high risks. profit is essential for maintaining

DB Group’s capital expenditure capacity. profits generated

are either retained or distributed to the Federal Republic of

Germany. the share of profit retained in the company

increases the Groupʼs capital expenditure and borrowing

capacity.

Cash flows between DB AG and major direct subsidiaries [€ million] 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total

FRoM PRoFIT AND LoSS TR ANSFER AGREEMENTS

DB Netz AG + 181 + 548 + 324 + 183 +260 +212 – 146 – 338 –768 + 44 – 307 – 197 – 66 – 70

DB Station & Service AG – 0 +251 – 37 – 55 – 69 – 52 – 90 – 190 – 150 – 141 – 155 – 160 – 169 – 1,017

DB Energie GmbH –2 –29 – 43 – 47 – 44 – 111 – 106 – 18 – 91 – 38 + 38 – 62 + 37 – 516

DB Mobility Logistics AG – – – – – – – – 1,263 – 113 + 109 – 827 – 1,040 – 397 – 3,531

FRoM cAPITAL INcREA SES By DB AG

DB Netz AG – – – – + 600 – – – – + 620 – – + 5 1,225

(+) Inflow of capital to subsidiary.

(–) Outflow of capital to DB AG.

Profit and loss transfer and domination agreements

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Basic understanding of DB Group

Transport and logisticsPassenger transport

RAIL SySTEM IN GERMANy

Infrastructure/Services


Business moDel

the rail system in Germany is an essential part of DB Group’s

business activities. Since the beginning of the new millen

nium, we have also gradually expanded our business port

folio in order to meet our customers’ needs more effectively

and respond to new market demands.

today, our passenger transport business activities are more

broadly diversified. they comprise not only bus and rail trans

port, but also intelligent networks with other modes of trans

port. Furthermore, we have business operations through

out europe that enable us to benefit from increasing market

potential in opening bus and rail transport markets.

our business activities in the transport and logistics di

vision have been conducted on an international level from

very early on and cover all modes of transport: rail freight

and land transport are focused on europe, while our ocean

and air freight activities and contract logistics are global.

this structure enables us to offer highquality logistics

solutions to internationally active companies and to develop

synergies between transport networks in the interest of our

customers.

the four key success factors in the positive development

of DB Group are as follows:

A entrepreneurial approach: in the course of the German

rail reform, DB Group has established itself as a commer

cial enterprise. particularly worth mentioning in this con

text are the establishment of a modern and efficient orga

nization and a valuebased management approach with

the goal of capital market capability.

A Integrated Group: as a system integrator in Germany,

DB Group optimizes the wheelrail system. In doing so, it

serves as an important impetus to technology. the Group

structure enables us to achieve positive synergies and

align our infrastructure to support efficiency, market ori

entation and profitability.

A International direction: due to our focus on europe in

passenger transport as well as our european and global

orientation in the transport and logistics area, DB Group

has an excellent position in the relevant markets. As a

result, we are responding to the increasing demand for

crossborder solutions. At the same time, we are best

positioned to take advantage of growth opportunities.

A Intermodal transport solutions: we offer our customers

doortodoor mobility and logistics solutions from a single

source. We intelligently link various transport modes in

an economical and environmentally friendly way. In addi

tion, we offer complementary products and services in

the transport and logistics area.

Business and financial relationships between DB ML Group and the remaining DB Group companiesthe main charges for cost allocations arising from business

relationships between DB Ml Group and the remaining

DB Group companies are illustrated in the following table:

DB ML GroupServices rendered[€ million] 2013 2012

Change

absolute %

Transport services 212 190 +22 + 11.6

Data processing services 215 200 + 15 + 7.5

Telematics 138 151 – 13 – 8.6

Maintenance services 170 182 – 12 – 6.6

Rental income 100 102 –2 –2.0

Interest income 1 3 –2 – 66.7

Facility management 59 41 + 18 + 43.9

Intra-Group charges 155 149 + 6 + 4.0

Other income 697 659 + 38 + 5.8

DB ML Group income 1,747 1,677 + 70 + 4.2

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Relevant marketsDB Group provides national and international services, the

target markets of which are reflected in our Group’s “Mobil

ity–networks–logistics” brand image. We operate world

wide in over 2,000 locations spread across more than 130

countries.

passenGer transport

In passenger transport, our primary objective is to maintain

our strong market position in Germany in the long term

while growing in europe. With our DB Bahn longDistance

and DB Bahn Regional business units, we are extremely well

positioned in the German rail and bus transport markets.

the european passenger transport market became even

more important to us following our acquisition of Arriva in

2010. throughout europe, transport contracts are being

increasingly tendered in regional and urban transport. We

intend to profit from these as well in the future. through our

DB Arriva business unit, we are now successfully active in

the regional bus and/or rail transport business in 14 Euro-

pean countries [page 154 ]. this puts us in a good position for

continued growth.

the gradual opening of the passenger transport markets

in europe represents an important strategic opportunity for

rail transport: the crossborder rail passenger transport

market has been open since 2010 in principle. We want to

exploit the opportunities for growth generated by this

opening with our own services and with services offered in

partnership with other railways. We also want to drive fur

ther technological standardization together with other

railways and our partners in industry. this should achieve

uniform interfaces and processes between infrastructure

and transportation companies, particularly in europe.

the liberalization of the european passenger transport

markets is, however, progressing at different speeds across

europe. Germany is at the forefront of liberalization of na

tion al long distance rail passenger transport. In many other

countries, the national longdistance transport market has

not yet been opened to competition.

transport anD loGIstIcs

We strategically positioned ourselves as a leading transport

and logistics service provider worldwide early on in order to

respond to current and future market demands. DB Schenker

represents our international logistics capabilities in world

wide air/ocean freight and contract logistics, as well as our

dense network in european rail freight and land transport.

We want to take advantage of the opportunities arising in

highgrowth markets in this sector.

the demand for international logistics services is rising

due to increasing internationalization and the shift towards

crossborder production structures and flows of goods in our

customers’ markets. We meet these challenges with inte

grated and branchspecific services and solutions. By devel

oping efficient and international logistics networks in land

Relevant markets

GER MANy

Long-distance transport

Rail infrastructure

WorlD

Ocean freight

Air freight

Contract logistics

International rail

projects

europe

Land transport

Rail freight transport

Cross-border rail transport

Regional and urban

transport

K


æ

Market positions passenger transport 2012

No. 2 in European long-distance rail passenger transport [based on revenues]

No. 2 in European local rail passenger transport [based on revenues]

No. 3 in European public road passenger transport [based on revenues]

1. SNCF 1. SNCF 1. Veolia Transdev

2. DB Group 2. DB Group 2. Régie autonome des transports Parisiens (RATP)

3. Ferrovie dello Stato (FS) 3. First Group 3. DB Group

4. Swiss railways (SBB) 4. Ferrovie dello Stato (FS) 4. SNCF

5. Nederlandse Spoorwegen (NS) + Abellio 5. Go Ahead 5. London Underground

Data for competitors based on annual /analyst reports and own calculations.

æ

Market positions transport and logistics (2012)

No. 1 in European rail freight transport [based on tkm]

No. 1 in European land transport [based on revenues]

No. 2 in worldwide air freight [based on t]

1. DB Schenker 1. DB Schenker 1. DHL

2. Fret SNCF 2. DHL 2. DB Schenker

3. PKP Cargo 3. DSV 3. Kuehne + Nagel

4. Rail Cargo Austria 4. Dachser 4. Panalpina

5. Trenitalia Cargo 5. Geodis

No. 3 in worldwide ocean freight [based on TEU]

No. 5 in worldwide contract logistics [based on revenues]

1. Kuehne + Nagel 1. DHL

2. DHL 2. CEVA Logistics

3. DB Schenker 3. Kuehne + Nagel

4. Panalpina 4. Norbert Dentressangle

5. DB Schenker

Data for competitors based on annual /analyst reports and own calculations.

transport, we maintain contact with our customers and

create new growth opportunities. the rail freight transport

business unit also benefits from this, such as through inter

modal transport chains and synergy effects.

We are safeguarding the future of rail freight transport in

Germany by integrating rail freight transport into highper

formance, international logistics networks, thereby opening

up new opportunities for growth. the european rail trans

port market has been completely open since 2007. We serve

all the important rail corridors within europe and have our

own subsidiaries or partnerships in all relevant countries.

Infrastructure

In Germany, we have assumed dual responsibility for rail trans

port as a result of our integrated Group structure: we are both

the operator and primary user of the rail infrastructure.

the resulting high customer and efficiency focus in our

infrastructure serves all train operating companies without

discrimination. In addition to the Group’s internal code of

conduct, we ensure competitive neutrality of our rail infra

structure by means of regulation that is considered strict by

international standards. our goal is to continue to develop

the rail transport mode and thus strengthen the transport

infrastructure that is vital for Germany as a business loca

tion. At the same time, we are laying the foundations for

coping with the increasing flow of traffic in europe. We also

take care of both the rail network and passenger stations as

well as the power supply for the train operating companies

in Germany.

K


InternatIonal raIl projects

our expertise is increasingly in demand for the realization of

rail projects worldwide. our subsidiary DB International is

involved in rail projects in various functions. We export our

knowhow in building and operating highperformance and

integrated transport systems all over the world. the busi

ness model is geared towards integrating the expertise gath

ered in technologically sophisticated infrastructure into

projects world wide. DB International operates in 41 coun

tries worldwide.

market posItIon

DB Group is a successful provider of national and internation

al services in all sectors of the transport market (passenger

transport, transport and logistics as well as infrastructure)

and has a leading market position in all the sectors.

In order to maintain competitiveness, our objective is to

continue to strengthen and expand our solid basis in all of our

relevant markets.

Development of ordersIn most of our business units, incoming orders are not a

relevant performance indicator and the majority of the

Group’s revenues are generated independently of longterm

contracts. the DB Bahn Regional and DB Arriva business

units are an exception to this rule, together accounting for

about 30 % of total revenues. In these business units, the

development of orders in the form of long-term transport

contracts [page 144 ff.] concluded with Germany’s Federal states

and franchisers in other european countries constitutes a

key performance metric. there are longterm contractual

relationships with customers also in the contract logistics/

SCM line of the business in the DB Schenker logistics busi

ness unit, which generates about 5 % of total revenues.

ticket sales in the DB Bahn longDistance business unit

generally generate immediate revenues that are received

within a short period of time.

In the DB Schenker Rail and DB Schenker logistics busi

ness units, framework contracts are also concluded with

customers who have continuous demand for transport or both

transport and logistics services.

Incoming orders in the DB netze track business unit are

generally related to trainpaths assigned to train operating

companies, whereby we make a distinction between sched

uled and nonscheduled transport services.

the DB netze Stations business unit has a similar structure.

In this business unit, we conclude contracts with train oper

ating companies for station stops as well as longterm con

tracts for leasing station space. the incoming orders in the

DB netze energy business unit pertain to energy purchased

by train operating companies. the infrastructure business

units generate most of their revenues with intraGroup

customers.

Services provided by the DB Services business unit are

like wise mainly purchased by intraDB Group customers.

Company-specific early indicators and operating value driversour valuebased management is supported by a system of

economic indicators and operating value drivers. As operator

of transport networks in passenger and freight transport,

our economic success is particularly influenced by the gen

eral economic environment and the specific development of

the individual transport markets.

Demand in the passenger transport business units de

pends above all on the population, the number of employed

persons and real disposable income. the competitive situa

tion relative to road transport is influenced significantly by

the development of fuel prices. “outofpocket” costs for car

travel are an important factor for individuals when choosing

a means of transport.

the financial resources of the ordering organizations

are also of key importance in the DB Bahn Regional and

DB Arriva business units. Both in rail as well as in bus trans

port, supplying the public with local transport services is

secured through long term transport contracts that are con

cluded between public transport authorities and transport

companies.

We depend largely on economic developments in the

transport and logistics division’s business units. Due to the

global setup of our transport networks, we monitor the

development not only of global GDp and world trade, but

also of economic growth in the regions, countries and trade

relations in which we have a high market share or in which

high growth rates in the exchange of goods can be expected.

We plan our market activities in line with this development.

the customary earlywarning indicators of the business cli

mate and of the expectations of purchasing managers are an

integral part of our monitoring system.

K


the specific market environment of DB Schenker Rail is par

ticularly influenced by the manufacturing industry’s produc

tion output and the development of our core industries. the

export and import activities of the individual countries and

the transport of goods within europe are of particular impor

tance in cross border transports.

our business unit DB Schenker logistics is active first and

foremost in the businesstobusiness segment. By contrast,

the customer base of DB Schenker Rail is highly diverse. It

covers predominantly the automotive, chemical, industrial

and commercial goods, high tech/electronics, consumer

goods and health care industries. In our market penetration

and product development activities, we attach great impor

tance to industryspecific solutions for comprehensive logis

tics services and multimodal products. In doing so, we also

strengthen synergies between our networks.

the services of the Infrastructure division’s business

units cover important elements of the value chains of their

customers in passenger and freight transport. the same

applies to the DB Services business unit. In this respect, the

development of demand in these business units is a factor

that is largely determined by upstream passenger and freight

transport markets. the area of marketing in the DB netze

Stations business unit carries its own importance. Consumer

trends in the general public are an important factor here,

much as they are in general retail in Germany.

the budgetary resources of public authorities, in partic

ular the German Federal Government, are of considerable

importance to the development of the rail infrastructure.

this applies not only to the financing of capital expenditures

to replace existing infrastructure, but also for the financing

of new and expansion construction projects. In this respect,

integration of an entrepreneurial infrastructure into the

Group structure is essential for enabling DB Group to continue

making a high contribution to the cofinancing of these infra

structure measures.

the development of the economic and earlywarning

indicators as presented above influences how we manage

our market activities and resources. opportunities and risks

can therefore be recognized early on, and, as a result, short

term controlling activities and longterm positioning focused

accordingly. At the same time, we work systematically on

optimizing our operating value drivers.

operating transport networks often necessitates a high level

of capital commitment, long investment cycles and distinct

fixed cost structures. In this respect, achieving optimal capac

ity utilization of our transport networks and systematically

developing, integrating and costeffectively operating these

networks with efficient use of resources are extremely impor

tant to DB Group’s economic development. Increasing vol

umes in our networks not only lead to economies of scale in

terms of costs, but also generally improves the quality of

service for the customers with increased service frequencies,

and shorter travel and transport times. our leading market

positions are an important success factor for customer satis

faction and profitability.

We use operating performance data to measure capacity

utilization in our networks and our relative market shares in

the transport markets. In order to determine a relative return,

we calculate ratios comparing performance data with the

generated revenues (specific revenues).

In the passenger transport business units, the leading

marketbased performance indicator is the volume sold mea

sured in passenger kilometers (pkm). this applies in partic

ular to longdistance transport where longdistance services

are operated on a purely commercial basis. the relative capac

ity utilization of the vehicles is also measured on the basis

of the key figures of passengers per train and the load factor.

the cost side correlates almost entirely with the volume pro

duced measured in train (train km) or trainpath kilometers

(trainpath km). these in turn depend essentially on a stable

train schedule over the course of the year. personnel and

facility resource management is determined on the basis of

this annual train schedule to optimize the cost per unit per

train kilometer traveled.

the business model for DB Bahn Regional and DB Arriva

is, in principle, comparable to that of DB Bahn longDis

tance. However, the volume produced as measured in train

or bus kilometers (bus km) plays a larger role, because the

transport contracts usually make specific reference to these

performance figures. Moreover, there are contracts with

public transport authorities in which ticket revenues are

awarded directly to the ordering organization, while the

transport company is directly and completely compensated

for the entire range of its services by the public transport

authority (gross contracts). In such contractual relation

ships, marketbased performance data and key figures on

capacity are less important, even though market success in

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the passenger market is, of course, indirectly relevant to the

efficiency of the entire transport market. Due to the fact that

transport contracts span several years, functioning sliding

price mechanisms that allow unexpected cost developments

to be passed on to the contracting organization play an

important role in managing the procurement market risks

relating to energy, personnel and infrastructure utilization.

Another important risk management component is how

reutilization risk is managed in the event that the useful life

of vehicles exceeds the term of a transport contract. this is

particularly relevant for regional rail passenger transport. An

operationally flexible vehicle fleet coupled with a broad and

balanced portfolio of transport contracts considerably reduces

this risk.

In the case of DB Schenker Rail, the leading marketbased

performance indicator is the volume sold measured in ton

kilometers (tkm). the relevant capacity utilization figure is

measured in tons per train. Comparable to the DB Bahn long

Distance business unit, the cost structure is mainly influenced

by the volume produced as measured in train or trainpath

kilometers. Due to higher market volatility, there is a greater

need for trains on demand, which cannot be scheduled with

long lead times. this calls for greater coordination of sales

and production, and for the improved management of re

sources based on this.

In the case of DB Schenker logistics, measurement of the

performance volume depends on the line of business. For

european land transport, the number of shipments is the key

indicator; for air freight, it is the freight carried measured in

tons, while in ocean freight, it is the freight volume mea

sured in teu. there is no comparable volume measure in the

contract logistics segment. Market comparisons are usually

performed here on the basis of revenues. When analyzing

value drivers, it is important to point out that the DB Schen

ker logistics business unit has a much lower capital intensity

and real net output ratio than the business units discussed

so far. About 70 % of revenues in this business unit come from

procured intermediate input services. therefore, optimizing

these purchase relationships and balancing various influential

success factors such as transport relations, volume, weight and

mode of transport represent an important factor for success

and are value drivers for business development. effective It

support is particularly important here. the same applies to

managing fluctuations in freight rates and the specific sur

charges to these freight rates. In particular an efficient use of

personal resources that proves to be effective as well is a key

driver below gross profit. this is particularly important for the

contract logistics segment. Here, expertise and experience

relevant to the industry are an essential success factor in the

optimal design of intracompany logistics processes.

the cost structure of the business units in the Infrastruc

ture division is determined in particular by fixed costs. Among

the most important cost drivers are the type and extent of

the infrastructure facilities. For DB netze track, this is the

track network; for DB netze Stations, it is the number of

stopping points. the use of resources for the operation and

maintenance of this infrastructure is very much influenced

by specific facility characteristics, requirements relating to

operational opening hours, and the degree of rationalization

in operating business activities. As the dimensions of the

infrastructure only change in the long term due to new or

expansion construction projects or targeted dismantling,

optimal capacity utilization of the existing infrastructure is

of major importance for economic success. A high level of

quality and availability for the train operating companies

also calls for a forwardlooking integrated capital expendi

ture and maintenance strategy that is focused on the pres

ervation of assets. For DB netze track, marketbased capac ity

utilization is represented in terms of volume sold mea sured

in trainpath kilometers. In terms of relative network capacity

utilization, this figure can be compared to length of line

operated. For DB netze Stations the case is similar, but is

based on station stops and the number of stations.

For the longterm development of rail infrastructure, it is

essential that new and expansion construction projects con

centrate on removing bottlenecks and on the creation of

additional capacities for transport growth in the main cor

ridors. this is particularly the case for the growth forecast

in rail freight transport.

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corporate strateGy anD manaGement

DB Group is active in a challenging environment. Along with

global and regional economic developments [ page 92 ff.] and

trends, specific challenges in the narrower environment of

rail transport also shape the development of DB Group.

trenDs In the envIronment of DB Group

We see ourselves confronted in the future even more strongly

with a high number of interlinked trends. these are the most

important general conditions for future business and sus

tainable company success.

A the international division of labor leads to an increase in

global flows of goods. At the same time, through strength

ened integration of regional economic areas, there is an

increasing regionalization of flows of goods. the demand

for customtailored logistics solutions is increasing.

A the liberalization of the european transport market, which

is not proceeding to the same degree in all european

countries, opens market opportunities for DB Group. At

the same time, increasing regulation reduces the freedom

of action, both for infrastructure operators and transport

companies.

A Climate change and the increasing scarcity of natural

resources are important challenges for the future. Social

and customer demand for business models that take

steps against climate change will become even stronger.

We take seriously our pioneering position and work con

tinuously to interlink modes of transport in an ecologi

cally intelligent manner, to strengthen rail transport and

establish environmentally friendly products.

A the digitalization of society will continue. With it the

demands on our mobility services such as interlinking

means of transport, on ticketing and payment as well as

intelligent organization of alternative routes in real time.

A Demographic change and the resulting competition for

talent are two more important and influential changes

for DB Group. In most world regions, but above all in the

european home markets of DB Group, the age structure

of society is shifting. the challenge is to offer future

focused mobility and logistics solutions for an aging pop

ulation. Beyond this, the labor market is developing into

an employeeʼs market. We are in an increasingly intense

competition with many other employers for talent at all

qualification levels. Higher individual standards as well

as workplace demands make a balance between career

and family more difficult. In order to assure employee

satisfaction and capacity to work in various life and

career stages, we must develop uptodate responses.

specIal challenGes In the raIl envIronment

Along with these global challenges we see ourselves increas

ingly confronted with operative challenges in the rail environ

ment in Germany. examples include the shortage of vehicles

in the entire passenger transport segment, changing tender

requirements affecting DB Bahn Regional, or the factor price

increases affecting most of our business units. Finding a sus

tainable solution for the financing of the rail infrastructure

is also of central importance. In addition, we are increasingly

confronted with more regulatory requirements.

the diversity of these challenges requires a broad ap

proach in the strategic focus. our compass for the future

di rec tion of DB Group is the sustainable DB2020 strategy,

which balances efficient operations with an emphasis on cus

tomers and quality, high employer attractiveness and the

environmentally sound use of resources.

manaGement of DB Group

With the strategy DB2020 DB Group has created a general

framework that harmonizes economic ≈, social † and environ-

mental ¥ dimensions in order to guarantee sustainable cor

porate success and social acceptance. to achieve our vision

to become the global leading mobility and logistics com

pany, we have set ambitious goals for all three dimensions:

we aim to become a profitable market leader ≈ with a focus on

customer and quality ¿, a top employer † and an eco-pioneer ¥.

to develop specific content and monitor its implementation,

DB Group has developed an integrated target system. twelve

top targets along four directions ensure a balanced picture

of the sustainability approach.

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Selection top targets 1) 2012 2013 2020

Profitability – ROCE (%) 8.3 6.8 ≥ 10

Market position – revenue (€ billion) 39.3 39.1 70

Financial stability – redemption coverage (%) 22.1 20.5 ≥ 30

Employee satisfaction – index 2) 3.6 – 4.0

Employer attractiveness – rank 3) 31 22 ≤ 10

Noise reduction – track kilometers noise remediated in total (km) 4), 5 ) 1,200 1,300 2,000

Noise reduction – share of freight cars refitted with whisper brakes (%) 4) 8.9 10.7 100

1) Not presented: customer satisfaction (not yet available for all business units), product quality (target value currently still under revision), innovation activities (deferred ), demographic preparedness (includes proportion of women, health status and coverage of external staffing needs; not yet available in a standardized form in the Group), reduction in specific CO₂ emissions (values for 2013 are not yet available) as well as material and resource efficiency (structuring not yet completed ).

2) On a scale from 1 (“completely disagree” ) to 5 (“agree completely” ). Because no survey was conducted in the year under review, the proxy indicator “follow-up workshop implementation rate” (97.9 %) is used.

3) See page 129.4) The goal of cutting noise by half by 2020 for the entire rail transport sector in

Germany is included in DB Group key figures presented.5) Values are rounded.

the target system applies throughout DB Group and takes

into account the specific challenges to each business unit.

the target system is also intended to enable the implemen

tation of measures based on concrete targets, to identify

conflicts among targets with regard to our aim to harmonize

economic, social and environmental issues, and to show the

progress of implementation of the DB2020 strategy by

monitoring throughout the course of the year.

In the annual strategic management process, the busi

ness units have translated the DB2020 strategy for them

selves and developed their own similar visions and strate

gies. Along with the corresponding targets as well as the

programs and measures derived from them, the DB2020

strategy is set in the mediumterm planning. For the first

time, targets in all four strategic directions were taken into

account in the 2013 endofyear bonuses for managers and

employees that are not subject to wage agreements. We

are actively communicating the DB2020 strategy in order

to assure the necessary transparency and inclusion of all

relevant shareholders. the linkage of the themes strategy,

leadership and corporate culture is particularly decisive for

successful implementation.

the DImensIons of the DB2020 strateGy

Economic

As a profitable market leader, we want to offer our custom

ers firstclass mobility and logistics solutions. two strategic

directions are essential if we are to achieve this leadership

goal: a renewed focus on customer and quality ¿, and the con

tinued pursuit of profitable growth æ.

æ † ¥

Vision and goals

Sustainable business success and social acceptance

our vision: we are becoming the worldʼs leading mobility and logistics company

Dimension

Strategic direction

Top goals

≈Economic

Profitable market leader

As a profitable market leader, we offer

our customers first-class mobility and

logistics solutions

¿ Customer

and quality

Customer satisfaction

Product quality

Innovation

æ Profitable

growth

Profitability

Market position

Financial stability

†Social

Top employer

As a top employer, we attract and retain

qualified employees who are enthusiastic about

working for DB Group and our customers.

† Cultural change /

employee satisfaction

Employee satisfaction

Employer attractiveness

Demographic preparedness

¥Environmental

Eco-pioneer

As an eco-pioneer, our products set

benchmarks for the efficient

use of resources.

¥ Resource preservation /

emissions and noise reduction

Reduction of CO₂ emissions

Noise reduction

Efficient use of materials/resources

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StRAteGIC DIReCtIon: CuStoMeR AnD QuAlItY

We have launched numerous measures to improve our focus

on quality and customers: capital expenditures in the vehicle

fleet – such as completion of redesign of ICE 2 trains [ page

147 ] and the conclusion of a framework agreement with Bom-

bardier [page 180 f.] – as well as in maintenance – such as the

procurement of highperformance rail grinding machines –

contribute to the stabilization and improvement of quality

in German rail transport. In addition, the improvement in

customer satisfaction [page 123 ] – through, for example, broad

ening of services or new products – is as before at the center

of our activities. Innovation in products and processes play

an increasingly large role and should continue to be encour

aged in the future.

StRAteGIC DIReCtIon: pRoFItABle GRoWtH

In recent years we were able to build up our market position

through organic growth and portfolio acquisitions. our

intention is to continue on our path of further growth. part

of this will involve consistently making the most of the syn

ergies available to us thanks to the integrated Group struc

ture. Improvement of capacity utilization and productivity,

and the continuous provision of competitive cost structures

are an important prerequisite in order to maintain position

in our markets and to grow profitably.

Social

As a top employer † we attract and retain qualified employees

who are enthusiastic about working for DB Group and our

customers.

StRAteGIC DIReCtIon: CultuRAl CHAnGe/

eMploYee SAtISFACtIon

to reach our target, three core targets serve to measure our

actions:

A Strengthening our attractiveness as an employer †: With 500

different occupational profiles and 50 apprenticeship

trades, DB Group is one of the largest and most diverse

employers in Germany. A visible and persuasive presence

in the labor market is decisive for continued success in

the competition for specialists and executives. A broad

based employer branding campaign presents DB Group

as a multifaceted, appealing and responsible company.

Against this background we have taken additional mea

sures in person nel recruitment [ page 128 f.] . At the same

time, the growing need for qualified employees calls for

even more concerted efforts aimed at employee retention

and development [page 129 ff.].

A Increase employee satisfaction †: We want to increase the

longterm satisfaction, engagement and loyalty of our

employees. We want to achieve this goal with a newly

vitalized corporate culture in which our collaborative

spirit is shown through appreciation, partnership and

mutual respect. We will consistently work to drive the

newly begun cultural transformation. Concrete improve

ment measures have been developed after the first

DB Group employee survey in 2012. We want to maintain

employee trust in the process of corporate culture devel

opment by the implementation of these measures. the

change in corporate culture and the DB2020 strategy

taken together also present new challenges for DB Group

executives. the increasing complexity of executive tasks

associated with these requires a stronger transforma-

tional understanding of leadership [page 131 ].

A Fostering demographic preparedness †: Forwardlooking cov

erage of personnel needs and maintenance of performance

and employability take on increasing importance in times

of demographic change and increasingly scarce workers.

the focus of personnel policies that can withstand demo

graphic change includes longterm and needsoriented

personnel planning [page 128 ] as well as employment condi-

tions [page 132 ff.] that are more strongly oriented toward

the professional and life stages of employees. In order to

make possible employment in the company for their entire

professional life, we offer our employees diverse possibili

ties for development and a broad range of health promo

tion programs, as well as supplying the benefits required

by collective work agreements. We are also committed

to promoting the diversity of our workforce. We want to

increase the proportion of women [ page 131 f.] by 2015 to

25 % of all employees, and to 20 % of executives.

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Environmental

As an eco-pioneer ¥, our products set benchmarks for the

efficient use of available resources. environmentally friendly

activities are part of our brand and performance pledge. Rail

transport already has a significant advantage in terms of

en vironmental friendliness. We want to continue to build on

our leading environmental position. In the year under review

we focused especially on reduction of specific Co₂ emissions

and energy consumption, as well as noise reduction.

ReSouRCe ConSeRVAtIon/eMISSIonS AnD

noISe ReDuCtIon DIReCtIon

A central component of the DB2020 strategy is the aim of

becoming an eco-pioneer ¥. In order to reach this goal, we

have defined three top targets:

A our climate protection ¥ target is aiming at reducing spe

cific Co₂ emissions – in other words, those relating to

volume sold – by 20 % by 2020 in comparison to 2006

levels. our goal to increase the share of regenerative

energy in traction current in Germany to 35 % by 2020 has

already been achieved in the year under review through

our green products in long-distance rail transport [ page

147 ]. We want to expand the share of renewable energy

in the future as well. our aim is to offer CO₂-free rail trans-

port ¥ with 100 % renewable energy. In addition to this, we

strive to continuously increase energy efficiency through

improvements in our operations and production and by

renewing our vehicle fleet.

A our noise reduction ¥ targets are no less ambitious. We

want to halve noise pollution from rail transport in Ger

many by 2020 compared with 2000 levels. the focus of our

activities will be the continuation of the construction of

noise abatement measures on existing rail lines, equip

ping goods wagons with lownoise composite brake shoes

and implementing other innovative track and rail vehicle

solutions.

A We are making a further contribution to environmental

protection through enhanced materials and resource effi-

ciency ¥. part of the optimization of our resource man

agement is above all greater use of recycling. We want to

increase clearly our material efficiency by extending the

service life of our production resources and regularly

optimizing our material cycles.

Another ecological focal point is the reduction of pollutant

emissions from our vehicles and taking environmental pro

tection issues into account in both our operations and our

construction activities.

Clear strategic focus in the operating divisionsthe clear strategic focus is also reflected in the operating

divisions within DB Group. this harmonious approach to the

economic, social and environmental dimensions also shapes

our decisionmaking and operating processes at division and

business unit level.

offerInG convIncInG moBIlIty servIces

throuGhout europe

We have bundled our passenger transport services in Ger

many and in crossborder longdistance rail passenger trans

port under the DB Bahn brand. We are present in the euro

pean passenger transport market outside of Germany with

the DB Arriva brand.

to achieve our aim in the economic ≈ dimension, in Ger

man passenger transport we want to increase further the

capabilities of our rail products and drive the integration of

individual services to comprehensive mobility solutions. We

have efficient, integrated regional and longdistance trans

port networks. Keeping customer requirements in mind, we

work continually on linking up networks and saving time by

providing optimum travel connections. Close consultation

with our customers is essential for this. By doing so, we can

offer our customers a comfortable and more environmentally

friendly alternative to motorized individual transport and

continental air transport options. In the year under review, we

again implemented numerous measures aimed at improving

the product and performance quality [page 123 ff.] of our services.

We continue to invest heavily in new trains and improve pas

senger comfort through comprehensive renovation of our

existing train fleet.

the liberalization of european passenger transport offers

many opportunities for growth. We are making the most of

these opportunities by expanding crossborder longdis

tance transport services and the european regional service

provided by DB Arriva, among other things.

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In the social † dimension, we are focusing on the development

of initiatives aimed at retaining and attracting employees.

to do this, we are making further investments in employee

satisfaction.

Along with the expansion of our green products, we want

to simplify access to our environmentally friendly mobility

options in public passenger transport, and contribute thereby

to the targets of the environmental ¥ dimension. to do this,

we are further developing the BahnCard discount card, for

example with the pilot project “BahnCard 25 mobil plus” in

Berlin. With e-Flinkster [page 139 f.], we offer an environmen

tally friendly alternative to conventional car sharing. In bus

transport, we are making increasing use of hybrid buses, and

thereby reduce exhaust emissions, particularly within cities.

comBInInG hIGh-performance GloBal netWorks

WIth proven expertIse In loGIstIcs

We are well positioned with our brand DB Schenker as one

of the leading global transport and logistics companies. We

offer our customers a diverse range of services – from trans

port with a single mode of transport to integrated supply

chain solutions. this is on account of our dense networks in

european rail freight transport, european land transport, and

global air and ocean freight transport, as well as our industry

specific expertise in global contract logistics.

We want to achieve profitable growth æ by attaining the

top position in target markets through financial stability and

continuous placement of qualitatively highvalue, integrated

and innovative solutions, supported by our highperformance

processes and It system.

In the social † dimension, we want to counteract demo

graphic challenges through recruitment and development of

skilled employees at different ages and with different profes

sional experience, ensuring longterm employee satisfaction,

and global strengthening of the DB identity.

to achieve our aims in the environmental ¥ dimension, we

want to become the leading environmentally friendly logis

tics service provider by developing a green product portfolio

and related consulting services for our clients. In addition

we want to be an industry leader for Co₂ and energy effi

ciency as well as noise reduction.

Guarantee hIGh-performance Infrastructure

the infrastructure business units provide the basis for secure,

reliable and efficient rail transport in Germany. their port

folio of products and expertise encompasses lines (rail net

works), facilities, stations and energy supply. In the provision

of these services, they focus on the needs of their customers

and those of passengers, train operating companies, trading

and service companies and public transport authorities,

designing the services provided and the associated pricing

systems for infrastructure use on a nondiscriminatory basis.

the infrastructure business units operate as commercial

enterprises and therefore count towards achievement of our

aims in the economic ≈ dimension. the integrated structure

of DB Group is a significant factor contributing to the success

of the rail infrastructure in Germany, with activities based on

an entrepreneurial approach. DB Group is fully responsible

for the rail mode of transport and makes a large contribution

to funding capital expenditures in infrastructure. of the

€ 107 billion in infrastructure capital expenditures since the

German Rail Reform in 1994, DB Group has funded € 19 bil

lion itself, corresponding to almost € 1 billion per year. this

was in addition to the redemption and repayment of interest

free loans (€ 10 billion) and investment grants (€ 3 billion)

that amounted to a nominal total of more than € 13 billion.

In the coming years, DB Group will also make significant

contributions to infrastructure capital expenditures from its

own funds. the dividend paid by DB AG is also used by the

German Federal Government to strengthen infrastructure

funding.

An awareness of our employees’ needs and the ability to

retain employees in the long term using targeted measures

is of vital importance to the future development of infra

structure. We want to drive the implementation of followup

measures and the regular repetition of the employee survey,

and ensure that we become a top employer †.

In the environmental ¥ dimension, noise reduction, Co₂

savings and resource conservation are targets set for infra

structure. Another is the increased use of renewable energy

in the traction current mix. the construction materials used

for network infrastructure are already recyclable to a great

extent and are the main contribution made by the Infrastruc

ture division to the preservation of resources.

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sustainaBility manaGement

the theme of sustainability is anchored in the DB Group

organization. the function of Chief Sustainability officer

(CSo) was created for overall responsibility, and is currently

held by Dr. KarlFriedrich Rausch (Management Board Mem

ber for transport and logistics). A sustainability competence

center has been set up to support this function. In this com

mittee, in which all relevant departments are represented,

themes and projects related to sustainability are managed

across all divisions and business units. However, the indi

vidual departments and business units are still responsible

for the content.

In the year under review we have also published a sustain

ability report. It was judged by the Global Reporting Initiative

(GRI) to have the highest application level (A+) and reflects

the principles of the un Global Compact. Additionally, we

will also report our sustainability activities in 2013 in a bro

chure of key figures of sustainability. In 2015 we will publish

for the first time an Integrated Report that combines both

the Annual Report and Sustainability Report.

Stakeholder dialoguetwoway dialogue and a trustworthy relationship with our

stakeholders based on integrity, continuity and transparency

are essential for us in order for DB Group to be perceived

publicly as a sustainable company. our audience groups con

sist of employees, customers, investors, politicians and regu

lators, suppliers, the general public, the media as well as

interest groups and experts.

We see this exchange as an opportunity to create under

standing for our position and transparency for business deci

sions while at the same time gaining recognition and impetus

for our sustainable and entrepreneurial business activities.

We want to recognize early on which themes are important

for the different audiences in order to be able to enter into

dialogue accordingly. our stakeholders will also be involved

in significant changes in direction, for example in the further

development of aims in the area of climate protection and

renewable energy, or in the conception of or introduction of

new products.

An important component of stakeholder dialogue is the

DB Sustainability Day, which took place for the second time

on october 28–29, 2013. About 120 representatives from all

stakeholder groups discussed constructively and critically

the interim balance of the DB2020 strategy presented by

DB management. the Management Board of DB Group took

part in these events, just as in 2012. top managers of almost

all business units of DB Group presented progress and areas

of action in the anchoring of the DB2020 strategy in each

of the business units, and discussed the related challenges.

sustaInaBIlIty ratInGs anD aWarDs

the ratings agency oekom research has again evaluated our

activities in the environmental and social dimensions. once

again we were able to attain a “B” and received thereby

“prime” status which designates industry leaders. In the

transport and logistics/rail branch, DB Group achieved first

place. Sixteen international railway companies were evalu

ated, from Japan, Canada and europe, among others. With the

sustainable DB2020 strategy, we also competed for the

newly announced “German Federal Government CSR Award.”

We were able to finish in the top five in the category “Com

pany with more than 5,000 employees.”

memBershIps

In the year under review, DB Group increased its engage

ment in various national and international organizations

related to sustainability. Internationally, we have been mem

bers of the World Business Council for Sustainable Develop

ment (WBCSD) since April 2013 in order to forge ahead with

new concepts for sustainable development in cooperation

with other multinational companies. We also recognize the

commercial principles of the united nations, the UN Global

Compact [www.unglobalcompact.org ] . DB Group presents its

progress towards the ten principles (Communication on

progress), most recently in the Sustainability Report 2012

[www.db.de/nachhaltigkeit] . At the national level, DB Group is

involved with econsense, the German industry forum for sus

tainable development. Along with this we also have affirmed

our commitment to the understanding of sustainability of the

Council for Sustainable Development by our declaration of

conformity with the German Sustainability Code [www.deutscher-

nachhaltigkeitskodex.de/en].

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social responsiBility

A global network of people is the basis of commercial suc

cess of our company in a society increasingly characterized

by transformation and change. this is why DB Group has

engaged since 1994 in various ways in numerous social proj

ects in Germany and worldwide.

out of the conviction that success cannot be measured

only commercially, DB Group uses its capabilities to meet its

social responsibilities as well. In this regard, our efforts are

focused above all on a number of areas: education and cul

ture, integration and social work, climate protection and

conservation, and humanitarian aid. our aim is to offer

future prospects and to help shape these positively over the

long term on the basis of our key areas of expertise.

Along with our own projects, we support many cultural

and social institutions, initiatives and activities. In the year

under review, we donated a total of € 1.8 million.

At the beginning of 2013 we founded Deutsche Bahn Foun

dation as a charitable organization. the DB Museum [www.

dbmuseum.de] is included in Deutsche Bahn Foundation. up to

0.5 % of the operating profit of DB Group will be allocated to

Deutsche Bahn Foundation each year. the task of Deutsche

Bahn Foundation is to bundle together important charitable

initiatives and projects of DB Group, secure charitable

engagement over the long term, and further expand them

in relevant future areas for a sustainable mobile society. It

has begun its work and is supported by highly regarded inde

pendent experts whose specialized knowledge will be incor

porated into its charitable work.

Education and cultureAs a longstanding partner and member of the “Stiftung Lesen”

(Reading Foundation) [www.stiftunglesen.de], we contribute to

providing children and young people with educational pros

pects and promoting social integration through numerous

projects and with our financial support. Joint initiatives such

as the Germanywide “Vorlesetag” (Reading Aloud Day) and

the reading promotion project “DB Vorlesekoffer” (DB Reading

Aloud Suitcase) aim to introduce even very young children

to reading. their goal is to strengthen the culture of inde

pendent reading and reading aloud in Germany. A total of

80,000 readers volunteered for the 10th Germanywide

Reading Aloud Day in 2013, and 1,000 of them were our

employees.

Another component of our engagement is the promotion of

scientific excellence. With our support, the number of national

scholarship holders (“Deutschlandstipendiaten”) was in

creased to 64 scholarships at 15 universities. Financial sup

port for selected endowed chairs at partner universities is

another part of the promotion of science.

the DB Museum also makes an important contribution

to our charitable engagement for education and culture. In

January 2013 a large new museum area, the childrenʼs railway

park KIBAlA, was opened as an interactive learning and play

area for children between 3 and 12.

Integration and welfareWe promote an open and tolerant society in which people

can participate who rely on help and support due to physical

disability, health condition or social disadvantages.

Since 1994 we have been supporters of the foundation

off Road Kids (oRK), the only transregionally active support

organization for homeless children in Germany. the oRK

foundation’s aim is to support the integration of children and

young people in need. We provide mobility for the organiza

tion’s street workers throughout Germany. Since we began

cooperating with the foundation, it has helped 3,000 young

people find new prospects in life. Since 2007, the foundation

has also organized the annual DB Kids Camp in collaboration

with us. this is an eventful week of vacation for successful

children from care homes.

together with Freie universität Berlin we are involved in

developing the social competence and civil courage of youth.

the project “fairplayer.manual” is aimed at schoolchildren in

the seventh to ninth grades. In a structured program designed

for the long term, the components of the lesson plans teach

schoolchildren how to handle harassment and prevent school

violence.

In 2013, we provided a financial contribution for the first

time to the German Congress for patients held by the Stiftung

Deutsche Depressionshilfe (Foundation German Depression

Aid, SDD). the Congress offered patients and experts the

opportunity for exchange and networking, but also to de

stigmatize the topic for the general public. expanded support

for SDD beyond the Congress for patients is being prepared.

We also supported the work of the Bahnhofsmissionen in

2013. our donation campaign “einFach spenden” collected

about € 100,000 for the work of the Bahnhofsmissionen.

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We donated € 100,000 to the Berliner Stadtmission (Berlin

City Mission) for expansion of its help network for the

homeless.

We are also engaged DB Groupinternally for integration

and care. In the scope of the annually conducted competi

tion “Bahn Azubis gegen Hass und Gewalt” (Railway appren

tices against hate and violence), almost 9,000 apprentices

have been engaged in over 9,100 projects for more tolerance

and against racism.

In Romania, DB Schenker enabled about 80 children to

attend the championship match of the Romanian soccer

league. For many children, it was the first live soccer match

that they had seen in a stadium. In addition, these children

and our employees took part together in the soccer tourna

ment of the Real Madrid Soccer School.

Climate protection and conservationA further focus of our engagement is environmental protec

tion and conservation of nature. the goal of the sponsored

projects is to protect the climate and nature as the essential

basis for a life worth living and longterm development. We

want to raise consciousness about climate protection and

conservation and the sound use of exhaustible resources.

In Germany we are continuing our engagement as partner

of the “Bergwaldprojekt” association. through redemption

of premiums in the context of the bahn.bonus frequent trav

eler program, a further 32,000 trees were planted. As part of a

special promotion of the bahn.bonus program, about € 54,000

was collected for the project.

In Romania, DB Schenker has supported the nGo Viitor

plus (Future plus) in the context of the recycling project

“Recicleta.” In this project, used paper is collected and trans

ported without Co₂ emissions by using cargo bicycles.

Humanitarian aidFor many years we have been engaged in ad hoc disaster aid.

We supported, among others, an aid campaign in Decem ber

2013 for victims of the typhoon disaster in the philippines

with € 100,000 for chartering a jumbo cargo plane which

brought medical equipment, food, clothing, tents and other

urgently needed goods to the affected areas. We have also

pledged about € 100,000 in aid goods and transportation

services for refugees of the Syrian civil war. In poland, we

have regularly transported products donated by manufac

turers and individuals to the warehouses of polish food

banks for 15 years.

sponsorinG

promoting young people has been one of our traditions. As

the main sponsor of both school sports competitions “Jugend

trainiert für olympia” (Youths training for the olympics) and

“Jugend trainiert für paralympics” (Youths training for the

paralympics) we not only sponsor athletic talent but also the

social integration of children and youths with disabilities. As

cosponsor and partner of the Deutsche Behindertensport

verband (German national paralympic Committee), we are

the exclusive main sponsor of “Jugend trainiert für paralym

pics.” Both of these commitments provide a significant con

tribution to promoting schoollevel sports in Germany for

children with and without disabilities, encouraging social

integration and the longterm promotion of the next genera

tion of skilled athletes.

We promote selected talented youth through DB Soccer

Camps with Hertha BSC Berlin, 1. FC Kaiserslautern, eintracht

Frankfurt, Borussia Mönchengladbach and 1899 Hoffenheim.

In the year under review, 168 boys and girls with a love of

sports took part in these free programs. they have the

opportunity to participate in professional training exercises

in the context of a Bundesliga match. the main priorities of

the camps are the enjoyment of exercise and values such as

readiness for action and team spirit.

We also offer young people the opportunity to experi

ence what it is like to be a reporter. From 500 applications,

11 youths were selected in the year under review who were

allowed to report for an entire Bundesliga season exclusively

for the sports magazine Kicker and draufabfahren.de, our

adventure and leisure portal for young people.

the sponsor agreement with Hertha BSC was extended

until mid2015. For the first time, a soccer clause for fan

outreach was specifically written into the agreement. this

includes project work that improves dialog with fans and

contributes to common solutions for more fairness and secu

rity. A further dialog product is the new app HerthaHelden.

this app allows fans at home matches to vote for the most

valuable player of the day after the 60th minute of the match,

and by doing so they have a chance to win attractive prizes.

our sponsoring agreement with eintracht Frankfurt that has

been extended until 2015 has also included for the first time

a partnership on the issues of fairer and more secure soccer.

We have been a premier partner of this Bundesliga club since

2002. We will coordinate more closely together with the first

league club to decide about measures and trips by fans to

away matches.

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92 Business and overall conditions92 Economic environment95 Developments in the relevant markets101 Political environment

92 Deutsche Bahn Group 2013 AnnuAl REPoRt

Economic EnvironmEnt

Developments in important macroeconomic indicators [%] 2013 2012 2011

Gross domestic product (Gdp)

World +2.2 +2.3 + 3.0

USA + 1.9 +2.8 + 1.8

China + 7.7 + 7.7 + 9.3

Japan + 1.7 + 1.4 – 0.4

Europe + 0.3 – 0.1 + 1.9

Great Britain + 1.9 + 0.3 + 1.1

Poland + 1.4 +2.0 + 4.5

Eurozone – 0.4 – 0.6 + 1.6

Germany + 0.5 + 0.9 + 3.4

France + 0.3 + 0.0 +2.0

Italy – 1.9 –2.6 + 0.6

Global tr ade (real)

Trade in goods +2.9 +2.6 + 6.6

The data for 2011 to 2013, adjusted for price and calendar effects, is based on information available in February 2014.

Source: Oxford Economics.

Assessment of the economic climate by the Management Boardthe global economy grew 2.2 % in 2013, just under the level of

the previous year, which meant that there was no stimulus for

growth in our core markets. the development seems to have

bottomed out in mid-2013. Global trade also saw weak

growth – consistent with the global economy, a positive

trend in the second half of the year became apparent.

Economic developments in the Eurozone were mostly

determined by the debt crisis, just as in 2012; however, since

mid-2013, stabilizing trends have become stronger. Despite

tangible effects of the developments at the European level,

the German economy grew slightly above the European aver-

age in 2013. this was accompanied by a growth in demand

in the German passenger transport market of about 1 %,

driven by motorized individual transport. While demand in

German rail passenger transport stagnated, DB Group com-

panies grew slightly below average.

With the exception of contract logistics, our global freight

and logistics activities showed rather moderate growth,

reflecting general cyclical developments. In rail freight trans-

port, the decrease in volumes began to slow compared to

the previous year.

Weak GDP growththe global economy grew modestly in 2013. Since mid-year

there has been an increasingly bright outlook. there were

many reasons for the modest growth in 2013: along with

persistent structural problems in the Eurozone, the uS econ-

omy grew relatively slowly compared to the previous year.

Developing countries such as Brazil, India or Russia were

faced with structural problems in domestic markets. Growth

in most of the developing countries in Asia was higher than

the global average, but was slowed slightly by developments

in other regions. Despite several challenges, such as in the

banking sector, China proved to be a stable anchor for the

global economy in 2013. Growth was about as high as in the

previous year and thereby even higher than expected at

mid-year.

In 2013 global trade grew only slightly faster than the

global economy despite positive trends in the second half.

Developments in 2013 showed clearly the weakness of inter-

national trade, since in the previous decade global trade had

grown on average twice as fast as global economic output.

usa

In 2013, economic growth in the uSA was weak, which was

caused above all by consumer demand, which is especially

important for the uS economy. Even a further recovery of

the labor market and increased wealth could not contribute

to stronger consumer spending. Another factor was the

negative effects of the dispute over fiscal policy. Positive

factors included low energy prices due to the boom in shale

gas production as well as the decision of the uS Federal

Reserve Bank to maintain its expansionary monetary policy

for the time being.

Business and overall conditionsA A

Economic climate remains stable

Relevant markets show broadly positive development

Hindrances from the regulatory environment

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93Group manaGement report BuSInESS AnD ovERAll ConDItIonS

asia

Chinaʼs economic growth in 2013 was almost the same as in

the previous year, but clearly below the levels that were

achieved several years ago. GDP growth of the export-depen-

dent Chinese economy was slowed primarily by sluggish

global demand. Chinaʼs overall economic growth remained

strong compared to the rest of the world.

Japanʼs economy developed relatively well in 2013. this

was due to the reorientation of economic policy to expansion-

ary fiscal and monetary policy. However, despite improved

competitive conditions for Japanese companies, exports only

picked up in the second half, primarily because of persistent

tensions with China as well as weak global demand.

europe

the European economy grew slightly in 2013. the reason for

this was an incremental improvement in conditions in the

Eurozone, above all since the middle of 2013. the European

debt crisis still continued to be the main driver of economic

development.

Great Britain, with almost 2 %, had the strongest GDP

growth among the large European economies in 2013. the

main driver was the promotion of housing finance by the

Bank of England.

Eastern Europe was also affected by developments in

Western Europe through close economic interdependence

in trade and capital flows. on the whole, Eastern European

countries grew weakly, but not uniformly: the Czech Repub-

lic remained mired in recession, while the economy grew

slightly in Poland and Romania. But even Poland could not

escape completely the pessimistic mood in Europe. Its over-

all economic growth remained comparatively strong, how-

ever. this was primarily due to a relatively solid banking

sector, strong growth in industrial production in the second

half of 2013 and minor inflationary pressure.

Eurozone

In 2013, stabilization tendencies could again be seen in the

Eurozone after prolonged recession. on the whole, however,

the structural problems at the root of the debt crisis in the

Eurozone, such as the limited competitiveness of certain

countries, could only be solved to a small extent. this pre-

vented a stronger economic recovery.

In 2013, the German economy continued more slowly on the

growth path it set in 2012. At the beginning of the year,

economic growth was still weak. It managed to pick up, how-

ever, over the rest of the year. As in the previous year, private

consumption was the main pillar of the economy. the labor

market had the highest workforce participation rate in his-

tory. In addition, falling prices on petroleum products had

positive effects on disposable income. Along with private con -

sumption, government spending also contributed to growth.

By contrast, German industrial production stagnated.

the slow recovery of Eurozone sales markets, but also global

demand that remained relatively weak at the beginning of

2013, led to a gradual improvement of the situation only over

the course of the year.

A the manufacturing industry was able to recover from de -

creased output at the beginning of the year and ex ceed

slightly the level of the previous year.

A the machine building industry had particularly strong

reductions in output. Managerial restraint and increasing

competition from Asia reduced demand.

A the chemical industry was able to expand its production

slightly, based on weaker conditions in the previous year.

A the automotive industry saw successively increasing

demand for vehicles in the second half particularly from

Germany and countries outside the Eurozone.

A the situation in the iron, coal and steel industry im-

proved with growth in the segments of their main cus-

tomers (in cluding the automotive industry). the signifi-

cantly decreased output in crude steel production in the

first months of 2013 was able to be smoothed out over

the course of the year.

Economic growth in France was moderate in 2013. the econ-

omy grew only very weakly. low competitiveness, the eco-

nomic situation in Europe and an inflexible labor market

impeded firms. the unemployment level continued to be

high, but stabilized at the end of 2013.

In 2013 Italy was still in a recession. there were stabilizing

tendencies over the course of the year, but tight government

spending, political uncertainty and decreased private sector

capital expenditure had negative effects.

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Development was mixed in energy markets

Developments in energy prices 2013 2012

Change

absolute %

brent crude oil (usd /bbl)

Average price 109 112 – 3 –2.7

Highest price 119 128 – –

Lowest price 97 88 – –

Year-end price 111 111 0 0.0

ba se load power (followinG year ) (€ /mwh )

Average price 39.1 49.3 – 10.2 –20.7

Highest price 45.6 54.5 – –

Lowest price 36.0 45.0 – –

Year-end price 36.5 45.3 – 8.8 – 19.4

emissions certificates (€ /ton co₂)

Average price 4.5 7.5 – 3.0 – 40.0

Highest price 6.8 9.6 – –

Lowest price 2.5 5.6 – –

Year-end price 5.0 6.7 – 1.7 –25.4

Source: Thomson Reuters.

the central hedging policy of DB Group is based on the prin-

ciple of minimizing energy price fluctuations and the corre-

sponding effects on results. In this context, we have estab-

lished a rolling hedge program that uses graduated levels

of hedging. Developments in market prices therefore did not

impact with full force on our activities.

the most important factors for developments in the oil

market in 2013 were the uncertainty over the continuation of

expansionary monetary policy of central banks worldwide,

the above-average rate of increase in uS oil production due

to the shale oil boom and the drop in production due to

unrest in north Africa and the Middle East. these somewhat

contradictory factors produced strong price increases in the

oil market in the year under review as well.

Renewable energy reached a new record share of almost

25 % of electrical production in Germany in 2013. Spot prices

in the wholesale market fell markedly especially due to

increased feeding in from photovoltaic plants, but isolated

price spikes were repeatedly observed. In peak times, wind

and solar power plants contributed about 60 % of power sta-

tion output required for energy generation in Germany. the

decline in spot market prices, coupled with weak economic

development in the Eurozone and a fall in the price of coal

and gas, has also led to falling prices on the electricity

futures market.

the carbon trading market is politically driven. uncertainty

on the market caused some carbon trading certificate auc-

tions to be terminated due to lack of demand. After the Euro -

pean Parliament at first rejected the so-called backloading

(retention of 900 million certificates) in mid-April, prices fell

sharply. In the meantime, prices recovered to almost € 5.5/

ton Co₂ and at year-end were again at a lower level of about

€ 5/ton Co₂. the decision reached in December to imple-

ment backloading from January 2014 had no further notable

effect on prices for emissions certificates.

Foreign exchange market strongly influenced by global macroeconomic developments

Developments in important currencies (average rates) as of Dec 31 2013 2012

Change

absolute %

€ /Australian dollar (AUD) 1.37769 1.24070 + 0.13699 + 11.0

€ /British pound (GBP) 0.84925 0.81087 + 0.03838 + 4.7

€ /Swiss franc (CHF) 1.23106 1.20528 + 0.02578 +2.1

€ /Japanese yen ( JPY ) 129.66267 102.49187 +27.17080 +26.5

€ /Swedish krona (SEK ) 8.65154 8.70407 – 0.05253 – 0.6

€ /US dollar (USD) 1.32812 1.28479 + 0.04333 + 3.4

€ /South African rand (ZAR) 12.83300 10.55106 +2.28194 +21.6


Signs of economic recovery in the Eurozone were increas-

ingly observed in 2013. As a result, investor uncertainty was

reduced and the common currency appreciated against most

other currencies. Along with these basic developments, coun -

try-specific effects were important for changes in individual

exchange rates.

In Australia, falling commodity prices impeded industry,

and as a result unemployment increased. to stimulate the real

economy, the Australian central bank followed an expan-

sionary monetary policy which as a consequence depreciated

the Australian dollar.

Economic recovery in Great Britain led to a slightly higher

inflation rate compared to price developments in the Euro-

zone. Combined with the continued expansionary monetary

policy (among others through low-cost provision of housing

finance) the British pound appreciated against the euro

moderately compared to the previous year.

Reduced demand for Swiss francs, due above all to better

outlooks in the Eurozone, also put the euro exchange rate

under pressure.

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In Japan in 2013, the government together with the Bank of

Japan introduced an expansionary monetary and fiscal

policy: they provided large quantities of yens to the market

in order to give the domestic export industry a competitive

advantage through currency depreciation. As a result, the

euro appreciated strongly against the yen.

In 2013, the euro exchange rate of the Swedish krona

remained at about the same level as in the previous year. the

increased demand for Swedish krona in the spring was re duced

over the course of the year through a temporary weakness

in economic conditions.

In the uS, the expansionary monetary policy of the Fed-

eral Reserve Bank due to the crisis led to a weakening of the

uS dollar. the demand for uS dollars was also limited due to

weaker than expected overall economic growth and the

budget showdown. on the whole, the euro appreciated

slightly against the dollar.

In South Africa, a market correction of the national cur-

rency could be observed in 2013. Falling gold prices and

lower demand for South African commodities added pressure

for depreciation. the South African rand depreciated sharply

against the euro.

Bond market with high volatility

Yield [%] 2013 2012

Change in percentage

points

German bunds (10 -year)

Average yield 1.63 1.57 + 0.06

Highest yield 2.04 2.06 – 0.02

Lowest yield 1.17 1.15 + 0.02

Annual yield 1.94 1.31 + 0.63


the bond market showed volatility in 2013 with very low

returns which continued on the whole. By April 2013 returns

on German Bunds fell nearly to the historic lows of the pre-

vious year. these developments were primarily driven by

existing uncertainties in the Eurozone, which made German

Bunds a safe investment class, and a high amount of liquidity

in the market. Portfolio reallocation to higher risk capital

expenditures, for example corporate bonds or peripheral

country sovereign debt, was carried out as the European

sovereign debt crisis eased. Price movements in German

Bunds were correspondingly negatively impacted. the

expectation that the uSA would end its bond purchase pro-

gram also weighed on the market. First, the uS budget show -

down and the subsequent announcement of the continua-

tion of expansionary uS fiscal policy led to revived demand

for German Bunds. After both a compromise over the uS

budget was found and a reduction in bond purchases by the

Federal Reserve was announced in December, prices for

German bonds fell again.

DEvElopmEnts in thE rElEvant markEts

Passenger transportGerman passenGer transport market

German passenger transport market [% based on volume sold]

Growth rate Market share

2013 2012 2013 2012

Motorized individual transport + 1.4 + 0.1 84.1 83.9

Rail passenger transport – 0.3 + 4.0 8.0 8.2

DB Group – 0.5 + 3.6 7.3 7.4

Non-DB Group railways +2.0 + 7.4 0.8 0.7

Public road transport – 0.5 – 1.7 6.9 7.0

DB Group – 1.8 – 3.9 0.8 0.8

Air transport (domestic) – 4.0 – 3.3 0.9 0.9

Total market + 1.1 + 0.2 100.0 100.0

Figures for the years 2012 and 2013 are based on information and estimates available in February 2014. The market share for each mode of transport has been rounded up or down; therefore, the total may not add up to 100.

In 2013, demand in the German passenger transport market

grew by about 1 %. After an extremely weak opening quarter,

the market recovered steadily. Winter weather conditions and

the negative workings days effects were primarily responsible

for these developments at the beginning of the year, as well

as increasingly positive stimuli from rising participation rates

and falling fuel prices.

the market-dominant motorized individual transport was

able to distance itself from the relatively weak growth in

other transport modes and improve volume sold by about

1 %. Reduced fuel prices and displacement due to flooding

were more than able to compensate for major service reduc-

tions as a result of adverse weather conditions at the start

of the year. the market share rose slightly to 84.1 %.

Rail passenger transport grew somewhat less in 2013

after strong growth in the previous year. the main reason

for this was restrictions due to flooding. In addition, inter-

modal competition intensified as a result of the liberaliza-

tion of the long-distance bus market. the market share fell

to 8.0 % because of this. total volume sold of our companies

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in 2013 was slightly below the level of the previous year.

While demand for DB Bahn Regional increased moderately,

the volume sold of DB Bahn long-Distance decreased notably.

non-DB Group railways were also not able to continue the

strong growth of the previous year. By our calculations, their

vol ume sold increased by about 2 % in 2013.

the reduction in demand for public road passenger trans-

port continued in 2013. By our estimates, demand fell by 0.5 %.

Demographic change also dampened growth prospects.

Strong growth in long-distance bus transport showed no

statistical effect, because the segment still has a small market

share and operator volumes are still below the regulatory

reporting threshold. the market share of public road pas-

senger transport fell to 6.9 % according to our calculations.

the volume sold of domestic German air transport fell

clearly in comparison to the previous year by 4.0 %. on the

one hand this was caused due to adverse weather conditions

and selective strikes in the first half of 2013. on the other

hand the air transport tax as well as reduced services damp-

ened growth. Displacement effects from rail due to flooding

were only weak. the market share remained at the level of

the previous year at 0.9 %.

european passenGer transport market

Economic conditions in 2013 as well were marked by the sov-

ereign debt crisis. the difficult labor market situation preva-

lent in many European countries and the resulting drop in

incomes weakened demand. the adverse winter weather con -

ditions that persisted unusually long in north and Central

Europe dampened growth further.

Based on the first corporate data published by the Inter-

national union of Railways (uIC), volume sold was reduced

in broad parts of the European rail passenger transport

market. According to what is known at this time, decreases

in volume were seen in the French SnCF, the Polish PKP, the

Romanian CFR Calatori and the lithuanian lG. the Spanish

Renfe was able to increase volume more than the others,

despite this trend, by increasing demand significantly through

marketing campaigns such as price cuts for high-speed rail

connections. Smaller railways such as the Finnish vR, the

Slovenian SZ and the latvian lDZ were also able to increase

volume. For rail, DB Group volume sold in Europe fell slightly

by 0.6%. In the year under review, the markets that are most

important for our business activities developed as detailed

below:

Great Britain

Positive developments in the labor market supported

demand in British passenger transport. Passenger rail trans-

port showed slightly increasing volume due above all to

growth in local transport.

the British rail passenger transport market received a new

impetus in March 2013 through the new franchise schedule of

the Transport Ministry [www.gov.uk/government/publications/rail-

franchise-schedule]. With the announcement of a prospective

extension of the CrossCountry franchise, and a basic agree-

ment on the extension of the contract for london over-

ground Services, DB Arriva was also able to benefit from this

development. In addition, DB Arriva pre-qualified for the

tender of the three franchises Crossrail, Caledonian Sleeper

and ScotRail. Furthermore, DB Arriva solidified its strong

position in the British bus market and expanded its service

through the premium bus service Sapphire [page 154 ], among

others.

The Netherlands

Falling workforce participation rates and reduced disposable

income impeded economic developments in the netherlands

and dampened transport demand. the development of the

rail passenger transport market was strongly positively influ-

enced by a statistical basis effect based on significant reduc-

tions in performance in the previous year.

the Dutch state railways (nS) strengthened its position

in urban transport in the netherlands by acquiring a 49 %

stake in the Hague’s urban transport operator (HtM). the

problems of nS related to the Fyra service from Amster dam

to Brussels remained unresolved, however. nS found the

new high-speed trains of the Italian railway train care manu-

facturer AnsaldoBreda to be permanently unsuitable for

use and sued for damages.

In 2013, DB Arriva was able to strengthen its position in

the Dutch rail passenger and bus transport markets as a

result of its multimodal transport (bus and rail) operated

since the end of 2012.

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Denmark

Stable workforce participation rates and strongly increased

real income delivered positive impetus for the development

of the Danish passenger transport market.

In rail passenger transport, demand was above the level

of the previous year.

In 2013, DB Arrivaʼs position in Danish rail passenger

transport remained largely stable. In the Danish bus market,

DB Arriva could not only secure its existing business, but was

able to strengthen its position particularly in the Mittel jüt-

land region through successful tenders. Among other achieve-

ments, DB Arriva won a transport contract in Holstebro. For

the first time in a Danish city, DB Arriva will operate this

public bus transport entirely with gas-powered buses.

Sweden

Growing workforce participation rates and real incomes had

positive effects on the development of the passenger trans-

port market and led to a growing demand in rail passenger

transport. the long-distance rail passenger transport market

also attracted increased interest of new operators. For 2014,

MtR nordic and Citytag i Sverige ordered train-paths for trains

between Stockholm and Göteborg. In rail passenger trans-

port, veolia transport Sverige won the tender for operation

of the Swedish part of the Öresund service.

In the year under review, DB Arriva completed the second

phase of mobilization of multimodal urban transport in

Stockholm.

Italy

In Italy, the economic situation continued to cloud over with

continued decline in the workforce participation rate and a

significant reduction in real income. Despite these condi-

tions, rail passenger transport had a significant increase in

performance which could be traced to intensified competition

for long-distance routes between the state railways Ferrovie

dello Stato Italiane (FS) and nuovo trasporto viaggiatori

(ntv). From December 2013, a connection between vienna

and venice was restarted through cooperation by the Aus-

trian Railways (ÖBB) and trenitalia.

In 2013, DB Arriva won all tenders for already-operated

services including the tender for bus transport in the province

of Cremona (in the lombardy region).

Freight transportGerman freiGht transport market

German freight transport market [% based on volume sold]

Growth rate Market share

2013 2012 2013 2012

Rail freight transport + 1.6 –2.9 17.4 17.4

DB Group – 4.2 – 6.3 11.7 12.4

Non-DB Group railways + 16.0 + 6.8 5.7 5.0

Road freight transport + 1.6 –2.3 70.5 70.8

Inland waterway +2.2 + 6.3 9.3 9.3

Long-distance pipelines + 12.2 + 3.7 2.8 2.6

Total market + 1.9 – 1.5 100.0 100.0

Figures for the years 2012 and 2013 are based on information and estimates available as of February 2014. The market share for each mode of transport has been rounded up or down; therefore, the total may not add up to 100.

on the whole, the German freight transport market has once

again developed positively in 2013. lack of economic impetus

for growth, a negative effect of working days (–3 days) and

a long-lasting winter led to a weak Q1 2013. In June 2013,

there was an additional hindrance due to floods in rail freight

transport and inland waterway transport. Demand only

recovered in the following months, and performance growth

for the whole year was almost 2 %. Growth was supported by

all modes of transport, while the positive development in

freight rail transport was almost entirely due to a one-time

statistical effect. In market share, only long-distance pipe-

lines grew as a result of delivery rearrangement by a refinery.

While market share was maintained in inland waterway

transport and rail freight transport, the share of road freight

transport fell again. Weak demand due to economic condi-

tions led to a persistently high intensity of intermodal and

intramodal competition as well as strong pressure on freight

rates.

After setbacks in the previous year, rail freight transport

in 2013 had higher volumes. With moderate impetus from eco-

nomic conditions, which resulted from continued re straint in

investments, and weak production across all branches (among

others in the iron, coal and steel industry important for rail),

the flood and an intensely competitive market environment,

this increase was shaped strongly by a statistical effect:

Already in Q4 2012 the growth through the subsequent addi-

tion of freight railways was reflected in the statistics. this

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effect continued through further additions in 2013 and applied

above all to combined transport, which was unable to con-

tribute to growth due to weakness in trade and weak devel-

opment in north-South transport. Without the effect of new

additions, total performance would probably have been

about the same as the previous year. the market share of rail

transport was stagnant at 17.4%.

After the strong drop in the previous year (– 6.3 %), the

drop in volume sold of our companies in 2013 diminished to

4.2 %. Along with the reasons already named, the causes lay

in strong competition as well as in single car transport, which

was about one-third of our overall revenue. the market share

of our companies fell from 71.4% to 67.3 % (intramodal) and

from 12.4% to 11.7 % (intermodal).

non-DB Group railways extended their above-average

growth which had been sustained for over a decade. Perfor-

mance growth increased dramatically in 2013 by about 16%

mostly because of the statistical effect, without which it

would have still been at least as strong as in 2012. this growth

came through contract awards as well as new and ex panded

services. the strongest growth was in the container (com-

bined transport), coal and automobile transport market seg-

ments. the intramodal market share in-creased strongly

compared to 2012.

In road freight transport (German and foreign trucks,

including cabotage transport in Germany), the volume sold

in 2013 increased by 1.6%. In Q1 2013, the lack of impetus for

growth, the negative effect of working days and adverse cold

weather conditions led to a significant decrease. In the fol-

lowing months, the developments improved, which among

other reasons was due to revived demand in the construc-

tion industry. Growth was supported, however, mostly by

vehicles registered in other countries. As already in 2012,

according to the toll statistics of the German Federal Agency

for Freight transport, trucks from Central and Eastern Euro-

pean countries, primarily from Romania and Bulgaria. trucks

from Western European countries could not reach the levels

of the previous year. Due to weak overall demand and the

clear cost advantage of trucks from Eastern European coun-

tries, the intensity of competition and pressure on freight

rates increased further. the market share of road freight

transport fell again in 2013.

Growth of inland waterway transport was strong in the be -

ginning of 2013 but lost its momentum over the course of the

rest of the year. volume sold nevertheless rose by 2.2 %.

While in Q1 the effects of the negative impetus from eco-

nomic conditions were again more than compensated for

due to a positive basis effect from the double-digit drop in

performance from adverse weather conditions in February

2012, its effects on comprehensive income weakened in the

following months. Along with weak demand, hindrances

from the flood as well as many strikes at locks contributed

to this slowdown. the market share remained stable.

european rail freiGht transport

the negative development of volume sold in European rail

freight transport (Eu, Switzerland and norway) in the pre-

vious year (– 4%) continued somewhat weakened in the year

under review with just – 0.5 %. the main driver of this decline

continued to be weak economic conditions and their effects

on industries important for rail freight transport such as the

iron, coal and steel industry and the construction industry.

In an intensely competitive market environment, there con-

tinued to be clear differences in regional developments.

According to the first corporate data published by the Inter-

national union of Railways (uIC), and based on current

knowledge of markets, despite stabilization in some coun-

tries and in some railways, volumes for the entire year

remained for the most part below, and in some cases signifi-

cantly below, the level of the previous year. volumes fell for

the French Fret SnCF, the Czech CD Cargo and the Slovakian

ZSSK Cargo. the Bulgarian BDZ, the Romanian CFR Marfa and

the latvian lDZ were particularly affected. In the European

network of DB Schenker Rail, volume sold remained 1.5 %

below the level of the previous year, which was mostly

because of the considerable decline of 4% in Germany. out-

side of the German market, on the whole, performance in -

creased significantly. In the year under review, development

in the countries that are most important for our business

activities developed as detailed below:

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Great Britain

volume sold in rail freight transport in the British market grew

by roughly 3 % in 2013, at an above average rate just as in the

previous year. this growth continued to be driven primarily

by coal transport. But there were also increases in the con-

struction materials industry and the dynamically developing

intermodal transport. our subsidiary DB Schen ker Rail uK

was able to solidify its leading market position with above

aver-age growth.

Poland

In Poland, the second-largest European rail freight transport

market, a tangible stabilization settled in the first half of 2013

after the significant decline in 2012 (– 9 %). In the second half

of 2013, the market developed positively again. on the whole

the volume sold in the year under review grew nearly 4 %

compared to the previous year. the positive development of

the state railways PKP Cargo had a market stabilizing effect.

DB Schenker Rail Polska was able to maintain its market

share at the same level as in the previous year.

France

After volume sold in the French rail freight transport market

in 2012 was significantly (– 5 %) lower than the level of the

previous year, it again developed positively in 2013. While the

French state railways Fret SCnF had slightly lower perfor-

mance in 2013, our subsidiary Euro Cargo Rail was able to

increase its volume sold significantly and further expand

market share.

european lanD transport

the market situation in European land transport remained

difficult in 2013 because of the weak economic situation.

After a moderate start of the year, demand again picked up

somewhat in the spring. In the second half of 2013, the posi-

tive trend continued, but remained relatively weak. Against

this backdrop, capacity bottlenecks in the transport market

continued to be exceptions limited to single trade routes or

regions. Due to high price sensitivity of customers and the

high intensity of competition, increased costs in transport

services could not be completely passed on to customers.

Accordingly, the pressure on margins in the freight market

increased despite slight price increases.

the market in Europe as a whole, measured by reve-

nues, grew by less than 1 %. Despite slightly lower revenues,

DB Schen ker logistics could maintain its position as market

leader.

air freiGht

the weak economic developments in previous years con-

tinued in 2013 and led to moderate growth of 1 % in total

market volume. Freight rates were on the whole at a low

level. the reason for this was both weak demand due to

economic conditions as well as overcapacity which resulted

from further new aircraft deliveries. Since September 2013,

rates nevertheless rose steadily on certain routes due to

reduced capacity. this was a result of market exit by Air

Cargo Germany, Aeroflot and Evergreen International Air-

ways as well as a new orientation in route planning by British

Airways.

various developments were observed in different trade

routes in 2013. For transports from the Middle East and Africa,

starting from a low level, growth of about 10 % was recorded.

While shipments from north America, primarily to Europe,

fell by about 3 %, transports from latin America were about

3 % above the level of the previous year, which was mostly

due to transports to north America. volumes from Asia (in -

cluding transports within Asia) fell by about 1 %, since truck

and rail solutions have now become available for the intra-

Asian market. volumes from Europe remained stable, while

the market to Asia grew and to north America fell.

Because of the challenging market conditions, DB Schen-

ker logistics recorded a slight decrease in volume of 0.3 %

and thereby lost market share.

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ocean freiGht

With about 2 % growth in 2013, the market situation in ocean

freight continued to be characterized by persistently weak

demand. the developments in individual routes differ, how-

ever. While the Europe to Asia volumes showed the strongest

growth with about 7 %, growth was nearly stagnant from

north America to Europe. Container transport on the highest-

volume route Asia to north America grew by about 2 %.

Despite the positive developments in some individual

routes, global demand remained below supply, so that the

ocean freight market continued to be characterized by over-

capacity. Because of high losses in the previous months, at

the end of the year shipping companies still ended up raising

shipping rates.

DB Schenker logistics was not able to maintain its market

share with a decrease in volume of 0.7 %, but it was still able

to keep its market position.

contract loGistics

In the global contract logistics market, positive develop-

ments from the previous year continued slightly weakened

in 2013 with an increase of about 5.5 %. All important regions

were affected by this, when at the same time it was the Asian

markets which continued to have high growth rates. Demand

development in the core industries of contract logistics/

supply chain management (automotive, consumer, electronics,

health care and industrial) was at a solid level in 2013. How-

ever, overall there was again good capacity utilization and

order levels for both the industry and trading segments.

Production quantities in the core industries were higher than

the previous year’s value. Growth was recorded in every key

country and region, particularly the emerging countries.

In this environment of intense competition, DB Schenker

logistics achieved an increase in revenues of 5.2 %, and was

able to maintain its market position.

Rail infrastructure in Germany

Selected key figures rail infrastructure of DB Group in Germany 2013 2012

Change

absolute %

Infrastructure customers 389 385 + 4 + 1.0

DB Group 18 18 – –

Non-DB Group 371 367 + 4 + 1.1

Train-path demand (million train-path km) 1,034.5 1,038.7 – 4.3 – 0.4

DB Group 787.2 808.2 –21.0 –2.6

Non-DB Group railways 247.3 230.5 + 16.7 + 7.2

Share of non-Group railways (%) 23.9 22.2 – –

Station stops (million) 146.2 146.4 – 0.2 – 0.1

DB Group 119.0 119.8 – 0.8 – 0.7

Non-DB Group railways 27.2 26.6 + 0.6 +2.3

open access to the market since 1994 means that our rail

infrastructure in Germany is used by a large number of cus-

tomers, the number of which increased slightly in 2013. no

other country in the Eu has such a high level of competition

in rail transport as Germany.

train-path demand fell slightly in the year under review.

While the volume produced in rail passenger transport ser-

vices decreased, as a result of the floods [page 168 ] during the

summer among other things, a slight increase was recorded

with respect to rail freight transport. the proportion of

non-DB Group railways also increased slightly.

the number of station stops remained fairly stable as

compared to the previous year, however the proportion of

non-DB Group railways increased once more due to the loss

of tenders for regional transport services on the part of

DB Group.

the development of retail and gastronomy revenues and

the competitive situation of the range of goods and services

offered in those stations that provide the full range of retail

services are particularly relevant for our stations. In this

regard, both leasing opportunities and the revenues

obtained from these are conditioned by the earnings of com-

mercial tenants. Real retail revenues in Germany (excluding

motor vehicles and gas stations) were slightly higher in 2013

than in the previous year. Earnings from rental leases in sta-

tions developed favorably in the year under review.

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political EnvironmEnt

Details of regulatory issues and the development of the Euro-

pean legal framework in the railway sector are also provided

in our annual Competition Report [www.db.de/competitionreport].

Regulatory issues in Germanythe Federal network Agency for Electricity, Gas, telecom-

munications, Post and Railway (Bundesnetzagentur; BnetzA)

and the Federal Railway Authority (Eisenbahn-Bundes-

amt; EBA) continued to regulate access to railway struc-

tures in Germany and to monitor compliance with unbun-

dling requirements for infrastructure and transport services

throughout 2013, within the scope of their specific areas of

responsibility.

maintenance facilities constitute

rail infrastructure

on February 18, 2013, the Higher Administrative Court (ovG)

of Münster confirmed in its judgment that maintenance

facilities constitute infrastructure within the meaning of rail-

way law and dismissed an application for an appeal before

the Federal Administrative Court (BverwG). As a result of this

legally-binding judgment, the unbundling requirements pur-

suant to railway law must now also be implemented for

maintenance facilities, with the exception of those which are

not of relevance in competitive terms. to this end, a concept

for the implementation of the requirements was discussed

with the EBA. In addition, regulations concerning remunera-

tion must be developed in line with rail law and binding

terms and conditions of use drawn up. A compliant price

system and terms and conditions of use had already been

agreed upon with the BnetzA and implemented prior to the

issuance of the courtʼs judgment.

reGulatory requirements relatinG

to traction power GriDs

In 2013, the BnetzA carried out a review of the fees for the

use of traction current lines and an efficiency comparison in

accordance with the provisions of the Incentive Regulation

ordinance (Anreizregulierungsverordnung; ARegv). the

scale for the revenue caps on the fees for the use of the trac-

tion current grid during the second incentive regulation

period (2014 to 2018) is based on the fees approved by the

BnetzA as well as the results of the efficiency comparison.

Although the cuts required as a result of the review of the

usage fees are smaller than in the first incentive regulation

period (2009 to 2013), they will nonetheless have a signifi-

cant adverse effect on the profits of DB Energie GmbH over

the next five years. In the efficiency comparison of grid op -

e rators which followed the review of the usage fees, DB Ener-

gie was accorded an efficiency rating of 100 %. the efficiency

comparison was carried out on the basis of the re duced usage

fees.

assessment of the train-path pricinG system

As part of the ongoing overall review of the train-path pricing

system (tPS), the focus of the BnetzA in the past was largely

on the evaluation and review of relevant costs (cost of pro-

vi ding standard services) with regard to train-path pricing.

the BnetzAʼs objective in this regard was to resolve ques-

tions concerning the volume and limit ation of the costs to

be considered and the way that these costs are passed on to

network users. According to a “final communication” dated

november 2013, not all of the costs submitted by DB netz

as costs of providing standard services will be recognized as

such by the BnetzA. BnetzA is now increasingly focusing on

the principles of pricing. DB netz and BnetzA are involved

in an ongoing dialog on this subject.

Determination of cost of capital with

reGarD to rail infrastructure

In 2010, the BnetzA presented an expert opinion commis-

sioned by it concerning the “Determination of cost of capital

in the railway infrastructure sector” for consultation with a

view to determining the permissible level of access fees in

the fee regulation context. DB Group took part in the con-

sultation process and itself commissioned an independent

expert opinion which came to different conclusions. the

consultation process ultimately came to an end without the

BnetzA reaching any formal determination, as the returns

actually realized by the DB infrastructure companies were

significantly below the thresholds under discussion. the

BnetzA published an updated version of its expert opinion

in August 2013, following which DB Group also updated its

expert opinion and submitted the findings to the BnetzA. In

all cases, the cost of capital for the rail infrastructure divi-

sions of DB Group as calculated by the experts commissioned

by the BnetzA is significantly lower than the figures con -

tained in the expert opinion commissioned by DB Group. It

is unclear when the BnetzA will come to a conclusion as to

the permissible returns.

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relationship Between fee reGulation anD

price controls unDer civil law unclear

In 2011, the Federal Court of Justice (BGH) held the review

of train-path usage charges by the civil courts pursuant to

section 315 of the German Civil Code (Bürgerliches Gesetz-

buch; BGB) at the same time as a review by the regulatory

bodies to be permissible. the BGH has also upheld this judg-

ment with regard to other fees for the use of rail infrastruc-

ture, dismissing corresponding appeals against denial of leave

to appeal brought by DB Station & Service AG in november

2013. As a result, DB infrastructure companies are faced with

considerable lack of legal certainty in this regard.

Regulatory issues in EuropeDismissal of complaint BrouGht on GrounDs

of improper implementation of first railway

packaGe

on June 24, 2010, the Eu Commission decided to file a com-

plaint with the European Court of Justice (ECJ) against Ger-

many and 12 other Eu member states. the countries in ques-

tion were accused of improper implementation of the first

European railway package, particularly in relation to the

ownership unbundling requirements. the Eu Commission and

the Federal Republic of Germany were the parties involved

in the contract violation proceedings.

on February 28, 2013, the ECJ dismissed the complaint of

the Eu Commission in its entirety, adopting the arguments

put forward by the Federal Republic of Germany and the

Advocate General to the effect that no infringement of the

regulatory provisions of the Community Directives had

occurred. the Eu Commission had claimed poor implemen-

tation in terms of the independence of the infrastructure

operator within the integrated group, the setting of infra-

structure charges, the system to encourage the reduction of

costs and access charges, and the powers of the national

regulatory body.

By way of its verdict, the ECJ has agreed that the DB hold-

ing model is valid and has confirmed that DB AG and DB netz

AG are in compliance with European requirements for

inde pendence.

Draft of fourth railway packaGe

the Eu Commission presented its recommendations on the

fourth railway package on January 30, 2013. this includes

recommendations on the liberalization of national rail pas-

senger transport markets, the technical interoperability and

safety of the European rail system and the further separa-

tion of rail infrastructure. the adoption of the fourth railway

package is subject to the consent of the Eu Parliament and

the Council of the Eu.

We view the planned improvements to the technical and

administrative conditions for the accreditation of rail vehi -

c les in Europe in a positive light, given that they could con-

tribute to the lowering of barriers to market access and to

increasing the competitive position of the railways in an

intermodal context. In contrast to the situation in many other

Eu member states, the market for rail passenger transport

in Germany has long been open to competition. We there-

fore welcome the Euʼs proposals for the opening up of

nation al rail passenger transport markets in Europe.

the German Federal Government and DB Group see no

reason for a further separation of rail infrastructure and

operations. the integrated railway structure model in place

in Germany has proven to be efficient and successful, and

this is also reflected in the positive development of competi-

tion in this area.

the ordinary legislative procedure, according to which

the Eu Parliament and Council must agree to the proposals

of the Eu Commission, was initiated in 2013. the Committee

on transport and tourism of the Eu Parliament voted on the

legislative initiatives in the context of a first reading on

December 17, 2013, largely affirming the Eu Commissionʼs

proposals for the extension of the unbundling provisions.

these decisions with regard to rail passenger transport ser-

vices are unlikely to provide any noticeable stimulus for the

development of competition within Europe. the Committee

also voted in favor of the technical interoperability pro-

posals. the Eu Parliament aims to conclude the first reading

of the draft legislation within the current legislative period.

to date, the Council of the Eu has only addressed the pro-

posals relating to technical interoperability and safety. In

June 2013, the transport ministers agreed upon basic aspects

of the issue of interoperability within the European railway

sector, pursuant to which the European Railway Agency

(ERA) will have sole responsibility for the accreditation of

rail vehicles for international transport, and agreement was

reached as to the amendment of the Railway Safety Directive

in october 2013. Both pieces of Eu legislation aim to bring

about a lowering of technical barriers to market access. the

draft legislation on the further separation of railways and on

the opening up of the rail passenger transport market has

not yet been considered by the Council.

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compensation for rail passenGers

in force majeure circumstances

By way of judgment of September 26, 2013, the ECJ declared

the exclusion of ticket price refunds in cases of rail transport

delays due to force majeure events to be unlawful. train

operating companies must now also refund at least 25 % of

the ticket price to customers in cases of delays of more than

one hour caused by force majeure events. the Eu Commission

has already announced that it will be considering an align-

ment of the liability provisions for all modes of transport.

announcement of intention to BrinG

complaint aGainst Germany in contract

violation proceeDinGs

on november 20, 2013, the Eu Commission announced its

intention to bring a complaint before the ECJ against the

Federal Republic of Germany for non-compliance with the

Eu requirements as to financial transparency in the railway

sector. the Federal Government has already on several occa-

sions refuted the Commissionʼs accusations and provided

comprehensive information on DB Groupʼs cash flows.

political aGreement on ten-t reGulation

for a unifieD european core network

the new Regulation on the Expansion of the trans-European

transport network and the related financing instrument, the

Connecting Europe Facility (CEF), came into force on Jan-

uary 1, 2014. the regulation defines a European core network

(planned implementation: 2030) and a comprehensive net-

work (planned implementation: 2050). Future Eu funding

will focus on the core network, for which ten tEn corridors

are to be created. As a result of the alignment of the new

tEn corridors with the existing rail freight transport corri-

dors, DB netz will in the future be involved in a total of six

multimodal tEn corridors which pass through Germany.

Advisory bodies, which will also include the member states

and infrastructure operators and will be chaired by Eu coor-

dinators, are to be established for management of the new

corridors. the regulation contains detailed infrastructure

requirements, such as the electrification and fitting of the

core network with ERtMS (European Rail traffic Manage-

ment System), as well as technical parameters for freight

transport lines (axle load, train length, speed). However,

member states will have the right to make implementation

depend on their respective budgetary situations.

the CEF for the development of the transport infrastructure

amounts to € 26 billion for the period from 2014 to 2020, and

also comprises subsidization of measures for the refitting of

freight cars for noise protection purposes in the amount of

€ 260 million. European funding for noise protection mea-

sures at source constitutes an important contribution in light

of the considerable proportion of international rail freight

transport and the varying countries of origin of freight cars.

Declaration on unifieD railway law siGneD

on February 26, 2013, the heads of state and government of

the member countries of the united nations Economic Com-

mission for Europe (unECE) signed a political declaration

on the unification of railway law. By signing the declaration,

37 countries located along key Eurasian railway corridors

agreed to officially begin working towards unified railway

law at un level. At the same time, train operating companies

have been asked to develop contractual conditions for Eur-

asian transport services. the goal is to accelerate the pace

of global rail transport and make it simpler. In the future, it

will be possible to navigate the route from Europe to Asia –

which extends over about 11,000 kilometers – with a single

contract, unified regulations and a single liability system.

rail reform in france

on october 16, 2013, the French government unveiled draft

legislation for the reform of the French railway system. the

French parliament is expected to vote on it during the course

of the first half of 2014. the draft legislation provides, in

particular, for the reintegration of Société nationale des

Chemins de fer Français (SnCF) and the infrastructure man-

ager Réseau ferré de France (RFF), and also increases the

influence exerted by the French Government over the SnCF.

It is additionally intended to bring about the harmonization

of working conditions throughout the railway sector.

DB Arriva has offered to carry out a number of pilot proj-

ects for rail passenger transport services in France in order to

drive forward the liberalization of the French railway market

and to identify potential savings for the French taxpayer.

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tenDer proceeDinGs continue in Great Britain

In october 2012, the British Department for transport (Dft)

suspended all ongoing bidding processes for rail transport

licenses due to flawed tender proceedings on the West Coast

Main line franchise. However, there was renewed momen-

tum in March 2013, with the Dft announcing its plans to

restart bidding for rail transport licenses on March 26, 2013.

the calendar includes a detailed schedule for the tender

proceedings planned for the next eight years.

In the second half of the year, revised bidding procedures

for the Essex-thameside franchise and the thameslink-

Southern Great northern franchise were resumed with the

bidders who had already qualified in 2012, and a new tender

prospectus for the InterCity East Coast franchise was pub-

lished in october 2013.

planneD expansion of open access

services in Great Britain

on June 14, 2013, the office of Rail Regulation (oRR) launched

a new round of consultations on the options for expanding

open access rail services in Great Britain. Its aim is to in crease

competition in rail transport to bring about benefits for pas-

sengers without creating unreasonable costs for taxpayers.

the round of consultations should have ended in August

2013, however no further results have yet been attained.

Development in the Bus market in Great Britain

After a 20 % cut in fuel subsidies (Bus Service operators

Grant; BSoG) in the previous year for bus companies oper-

ating local transport routes, the British government did not

resolve to make any further cuts following its review of public

expenditures on June 26, 2013.

In addition, the deadline for local transit authorities to

apply for the title Better Bus Area (BBA) expired on June 21,

2013. the Dft had announced subsidies for Better Bus Areas

in all regions within Great Britain. the measure aims to help

providers of transport services, most of them commercial, in

regions outside london benefit from this support within the

scope of local partnerships. the authorities chosen have the

opportunity to receive additional funding as part of the

BSoG to help them make their bus services more appealing.

new reGulations for passenGer

transport in italy

Italy’s “Stability law” also stipulates new rules for domestic

passenger transport. In the future, funding for the transport

sector will be provided out of two funds: the Fund for

Regional Public transport (bus and rail) (€ 4.9 billion) and the

Equalization Fund (€ 1.5 billion), which will be financed by the

individual regions themselves. the entire program of mea-

sures is intended to ensure the availability of an adequate

amount of funds as well as more efficient use of those funds.

Further development of the relevant regulatory frameworkliBeralization of lonG-Distance

Bus transport in Germany

Market activities in this area have gained considerable

momentum since January 1, 2013 following the liberalization

of the long-distance bus market. the creation of a network

by various competitors was significantly accelerated, and

planned market entries were brought forward. We have

reacted to these developments by making adjustments and

improvements to the existing line network in Germany and

to the brand image of the established Berlin linien Bus

(BlB) brand, with the extension of the BlB network being

carried out on a selective basis as opportunities present

themselves. In addition, we have closed existing gaps in our

range of long-distance rail transport services with our “IC

Bus” brand, with a view to establishing an integrated net-

work of DB long-distance transport services.

Draft of a railway reGulation Bill

In the course of the implementation of the coalition agree-

ment between the CDu/CSu and the FDP from the fall of 2009,

the Federal Government passed a draft bill on the reorganiza-

tion of regulations in the railway sector on September 19, 2012,

and subsequently initiated the parliamentary legislative pro-

cess. the Bundestag approved the law, with a few changes,

on May 16, 2013. the Bundesrat, which must also approve the

law, called for the intervention of the Conciliation Committee

at its meeting on June 7, 2013, as many of its demands had not

been taken into account in the draft bill. the conciliation pro-

cedure ended without an agreement on June 26, 2013. the

Bundesrat rejected the bill on July 5, 2013, and it is likely that

a new legislative proposal implementing the necessary

adjustments in the wake of the recast will be drawn up in the

new legislative period.

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105Group manaGement report Business and overall conditions

economic position

Economic positionA A

Stable revenue growth, decline in operating profit growth

Weak development in key value management figures

Ratings confirmed

Results of opeRations

Year-on-year changestrends in expenses and income were also influenced by

changes in the scope of consolidation [ page 211 ]. the following

changes are relevant for comparative purposes at the business

unit level and subsequently, if material, explained:

A dB arriva: ambuline (included since June 1, 2012), veolia

eastern europe (included since may 1, 2013) and centrebus

(included since september 1, 2013),

A dB schenker rail: transfracht (included since June 30,

2012),

A dB schenker logistics: suomen Kiitoautot (included

since march 31, 2012), schenker panama (included since

april 1, 2013) and schenker logistics l.l.c. (included

since June 1, 2013).

significant accounting changes [ page 211 f. ] are explained in

the notes to the consolidated Financial statements.

since January 1, 2013, some services are no longer recog-

nized in other operating income but in revenues instead.

For the purposes of comparability, the reclassification of

other operating income [ page 211 ] was adjusted in the business

units’ previous year’s figures.

Development of revenues

Revenues [ € million ] 2013 2012

Change

absolute %

DB Group 39,107 39,296 – 189 – 0.5

± Special items + 12 – + 12 –

DB Group adjusted 39,119 39,296 – 177 – 0.5

± Effects from changes in scope of consolidation –221 – 3 –218 –

± Effects from change in exchange rates + 497 – + 497 –

± Effects from the reclassification of other operating income –230 – –230 –

DB Group comparable 39,165 39,293 – 128 – 0.3

revenues declined slightly compared to the previous year.

this was due to negative impacts from the business units’

operational business performance and exchange rate effects.

this was compensated for by changes to the scope of con-

solidation and the reclassification of other operating income

to revenues.

the special item in the year under review resulted from

the adjustment of revenue deductions.

the effects from changes in the scope of consolidation

amounted to € 221 million in the year under review and are

primarily attributable to the following business units:

A dB arriva: € 167 million (veolia eastern europe: € 158 mil-

lion, centrebus: € 6 million and ambuline: € 3 million),

A dB schenker logistics: € 25 million (schenker panama: € 9

million, suomen Kiitoautot: € 9 million, schenker logistics

l.l.c.: € 6 million and schenker namibia: € 1 million),

A dB schenker rail: € 29 million (transfracht).

the exchange rate effects [ page 94 f. ] are mainly attributable

to the overall development of the euro against the British

pound, the australian dollar, the Japanese yen and the us

dollar. the exchange rate effects are attributable to the

dB schenker logistics (€ 355 million), dB arriva (€ 118 mil-

lion) and dB schenker rail (€ 24 million) business units.

the effects from the reclassification of other operating

income to revenues primarily relate to dB services.

adjusted for effects from exchange rate changes and

from changes to the scope of consolidation, as well as from

changes to the presentation of other operating income,

revenues were slightly lower than the level of the previous

year in the period under review (– 0.3 %).

æ

Revenues [ € billion ]

2013 39.1

2012 39.3

2011 37.9

2010 34.4

2009 29.3

æ

105 economic position105 results of operations112 Financial position113 value management117 statement of cash flows117 net financial debt118 capital expenditures119 Balance sheet

K

106 Deutsche Bahn Group 2013 annual report

revenue structure

æ

External revenues by division [ % ] [ 2013 2012 ]

Passenger Transport 1) 43.1 41.8

Transport and Logistics 1) 49.4 50.4

Infrastructure 6.1 6.3

Other 1) 1.4 1.5

1) Previous year’s figure adjusted for effects from the reclassification of other operating income to revenues.

the structure of external revenues remained largely the same

as for the previous year. the share of business units in pas-

senger transport increased slightly to 43.1 % (previous year:

41.8 %). on the other hand, the share of business units in

transport and logistics declined slightly to 49.4% (previous

year: 50.4%). at 6.1 %, the share of infrastructure business

units was down slightly (previous year: 6.3 %).

Structure of external revenues [ % ] 2013 2012 1)

DB Bahn Long-Distance 10.1 10.0

DB Bahn Regional 22.3 22.3

DB Arriva 10.7 9.5

DB Schenker Rail 11.5 11.6

DB Schenker Logistics 37.9 38.8

DB Services 0.7 0.7

DB Netze Track 2.6 2.5

DB Netze Stations 1.1 1.1

DB Netze Energy 2.4 2.7

Other 0.7 0.8

DB Group 100.0 100.0

1) Previous year’s figures adjusted for effects from the reclassification of other operating income to revenues.

revenues By reGions

External revenues by regions [ € million ] 2013 2012

Change

absolute %

Germany 1) 22,667 22,967 – 300 – 1.3

Europe (excluding Germany) 11,991 11,716 +275 +2.3

Asia /Pacific 2,449 2,753 – 304 – 11.0

North America 1,481 1,525 – 44 –2.9

Rest of world 531 560 –29 – 5.2

Reconciliation – –225 +225 –

DB Group adjusted 39,119 39,296 – 177 – 0.5


the development of revenues in the individual regions was

mixed during the year under review.

the Germany region recorded a slight decline in revenue.

this was the result of declines in the dB netze energy and

dB Bahn regional business units, among other things.

Growth in the dB arriva business unit which arose from,

among other things, the acquisition of veolia eastern europe,

had a positive influence on the europe region (excluding

Germany).

in the asia /pacific region, volume development in air

and ocean freight and in project business as well exchange

rate effects had a negative effect.

revenues in the north america region were below the

previous year’s level due to negative developments at

dB schenker logistics as well as exchange rate effects.

the regional revenue structure remained stable. the rev-

enues generated outside of Germany amounted to about

42 % in the year under review (previous year: about 42 %).

the share of the revenue generated in europe (without Ger-

many) therefore increased to about 31 % (previous year:

about 30 %).

æ External revenues by regions [ % ] [ 2013 2012 ]

Germany 1) 57.9 58.1

Europe (excluding 30.7Germany) 1) 29.6

Asia /Pacific 6.3 7.0

North America 3.8 3.9

Rest of world 1.3 1.4


Development of revenues By Business unit

the development of revenues in the business units was

mixed during the year under review. please see the chapter

Development of business units [ page 144 ff. ] for details.

æ

æ

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107Group manaGement report economic position

Development of profits the following presentation of income development describes

the changes in the key statement of income items, adjusted

for special items. the effects from the changes in the scope

of consolidation and exchange rate effects are presented in

the following table and are not explained further in the fol-

lowing section.

Excerpt from statement of income [ € million ] 2013

Reclassifi- cation

Special items

2013adjusted

2012adjusted

Change absolute

thereof changes in

scope of consoli-

dation

thereof due to

changes in exchange

ratesChange

%

Revenues 39,107 – 12 39,119 39,296 – 177 +218 – 497 – 0.5

Inventory changes and internally produced and capitalized assets 2,649 – – 2,649 2,614 + 35 – 4 – 1 + 1.3

Other operating income 2,853 – –25 2,828 3,008 – 180 + 6 –22 – 6.0

Cost of materials 1) –20,414 – 48 –20,366 –20,931 + 565 – 107 +296 –2.7

Personnel expenses – 14,383 – 1 – 14,382 – 13,793 – 589 – 66 + 109 + 4.3

Depreciation – 3,228 91 234 –2,903 –2,893 – 10 – 15 + 9 + 0.3

Other operating expenses 1) – 4,817 – 108 – 4,709 – 4,593 – 116 –22 + 80 +2.5

Operating profit (EBIT ) | Adjusted EBIT 1,767 91 378 2,236 2,708 – 472 + 10 – 26 – 17.4

Net interest income | Net operating interest income – 879 37 – – 842 – 865 +23 – 1 – 3 –2.7

Operating profit after interest 888 128 378 1,394 1,843 – 449 + 9 – 29 – 24.4

Result from investments accounted for using the equity method | Net investment income 3 – 8 – – 5 8 – 13 – 0 –

Other financial result – 15 –29 – – 44 – 123 + 79 – + 3 – 64.2

PPA amortization customer contracts – – 91 – – 91 – 82 – 9 – +2 + 11.0

Extraordinary result 2) – – – 378 – 378 – 116 –262 – 0 –

Profit before taxes 2) 876 – – 876 1,530 – 654 + 9 – 24 – 42.7

1) Previous year’s figure adjusted for effects from the reclassification of other operating expenses to cost of materials.2) Previous year’s figure adjusted.

æ

Transition to the adjusted statement of income [ € million ] 2013

Reclassifications Adjustment special items

2013 adjusted

Com- pounding /

discounting IFRS

Net investment

income PPA

amortization

Provision for anticipated

losses at DB Arriva

Impairment properties Other

Revenues 39,107 – – – – – 12 39,119

Inventory changes and internally produced and capitalized assets 2,649 – – – – – – 2,649

Other operating income 2,853 – – – – – –25 2,828

Cost of materials –20,414 – – – 1 – 47 –20,366

Personnel expenses – 14,383 – – – 1 – – – 14,382

Depreciation – 3,228 – – 91 27 200 7 –2,903

Other operating expenses – 4,817 – – – 72 – 36 – 4,709

Operating profit (EBIT ) | Adjusted EBIT 1,767 – – 91 101 200 77 2,236

Net interest income | Net operating interest income – 879 37 – – – – – – 842

Operating profit after interest 888 37 – 91 101 200 77 1,394

Result from investments accounted for using the equity method | Net investment income 3 – – 8 – – – – – 5

Other financial result – 15 – 37 8 – – – – – 44

PPA amortization customer contracts – – – – 91 – – – – 91

Extraordinary result – – – – – 101 –200 –77 – 378

Profit before taxes 876 – – – – – – 876

æ

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revenue development in the year under review was charac-

terized primarily by the developments at the dB schenker

logistics and dB netze energy business units. the positive

development in the dB arriva business unit had an opposite

effect.

other operating income was down year on year. the

effects of the reclassification have been mitigated by higher

income from the reversal and utilization of provisions.

the cost of materials recorded for the year under review

was lower than in the previous year. this was particularly the

result of lower levels of purchased services at the dB schenker

logistics and dB services (maintenance) business units

due to the decline in performance as well as lower energy

procurement at dB netze energy. this was compensated for

through price effects in energy expenses (including due to

a higher proportion of ecopower), the expansion of services

and increased expenses for infrastructure utilization in

Great Britain at dB arriva as well as for winter services and

maintenance at dB netze track.

personnel expenses were noticeably higher than the pre-

vious year figure, reflecting wage increases and the greater

number of employees.

other operating expenses also increased. among other

things, this was due to higher expenses for purchased it

services, particularly for dB schenker logistics, higher costs

for other services, as well as higher compensatory benefits at

dB Bahn long-distance, including as a result of the expan-

sion of passenger rights [ page 103 ]. this was partially offset

by lower allocations of provision for anticipated losses at

dB Bahn regional.

overall, the development of adjusted eBitda, which

decreased by € 462 million, or 8.2 %, to € 5,139 million, was

clearly negative in the year under review (previous year:

€ 5,601 million) due to the significant cost burdens in the

case of a slight decline in revenue development. depreciation

was at the same level as in the previous year. accordingly,

adjusted eBit (down € 472 million, or 17.4%, to € 2,236 million)

and operating profit after interest (down € 449 million, or

24.4 %, to € 1,394 million) also declined in the year under

review.

However, net operating interest income improved slightly

due primarily to a lower level of interest. this was offset by

the higher holdings of outstanding bonds [ page 117 f. ].

as a result, the adjusted eBitda and eBit margins reduced

in the year under review, from 14.3 % to 13.1 %, and from

6.9 % to 5.7 %, respectively. in all business units, the eBit

margin fell in the year under review (primarily in the dB netze

track, dB services, dB Bahn long-distance and dB Bahn

regional business units).

the improvement in the other financial result was pri-

marily attributable to lower effects from the compounding

of provisions. in contrast, the extraordinary result declined

year on year [ page 109 ]. the drop in profit before taxes of

€ 654 million, or 42.7 %, to € 876 million, was stronger than

the fall in operating profit after interest.

transition to the aDjusteD statement of income

the transition to the adjusted statement of income is a two-

step process. the first is standard reclassifications, with the

figures then being adjusted for individual special items.

the reclassification performed in the first step essentially

relates to two issues. the first issue is the reclassification of

net interest income components not related to net finan -

cial debt and pension provisions. these are predominantly

the compounding and discounting effects of non-current

provisions (excluding pension obligations) and non-current

liabilities (excluding financial debt). the non-operational

character of these components can be seen in the fact that

their influence on net interest income very much depends on

their given interest rates as of the balance sheet date. these

adjustments are used to calculate the net operating interest

income, the individual components of which correspond to

net financial debt (including liabilities from finance leases)

and pension provisions.

the second significant reclassification relates to the

amortization of intangible assets capitalized in the course of

purchase price allocations (ppa) of acquisitions conducted

during the assessment of long-term customer contracts. this

issue plays a role in acquisitions in passenger transport in par-

ticular, because existing transport contracts with ordering

organizations play a major part in purchase price assessments.

in order to ensure the operating assessment of such transport

!!! K


contracts that make up part of acquisitions and to prevent

these contracts from being treated differently than other

contracts, these amortization components are eliminated

from operating profit. the sum reclassified in the year under

review relates almost entirely to the acquisition of arriva.

the second step is the adjustment for special items.

these are issues that are considered to be extraordinary in

terms of their nature and/or amounts and where recognition

in adjusted profit would have a substantial impact on the

operating development over a period of time. regardless of

their amounts, book profits and losses from transactions

with affiliated companies/financial assets are adjusted.

in addition, individual items are adjusted if they are extra-

ordinary in character, can be accounted for and assessed

precisely, and are significant in volume. the following table

shows the extraordinary result in a year-on-year comparison

and a comparison according to business units. the sum

reclassified from eBit is reported separately in each instance.

extraorDinary result

Extraordinary result [ € million ] 2013

thereof effecting

EBIT 2012

thereof effecting

EBIT

DB Bahn Long-Distance – – – –

DB Bahn Regional – – 3 3

DB Arriva – 104 – 104 –71 –71

DB Schenker Rail 12 12 – 100 – 99

DB Schenker Logistics 3 3 0 0

DB Services – 8 – 8 – –

DB Netze Track –200 –200 –270 –270

DB Netze Stations – – – –

DB Netze Energy – 45 – 45 – –

Other/consolidation 1) – 36 – 36 322 322

DB Group 1 ) – 378 – 378 – 116 – 115

1) Previous year’s figure adjusted.

the extraordinary result is the sum of the special items

described below:

A adjustment of provisions for potential losses in the dB

arriva business unit

A effects of the reversal of provisions in the dB schenker

rail business unit

A effects of the disposal of investments in the dB schenker

logistics business unit

A effects of unscheduled depreciation in the dB services

business unit

A impairments on the real estate portfolio in the dB netze

track business unit

A effects of the formation of provisions for regulatory

issues in the dB netze energy business unit

A expenses for the formation of provisions for process risks

(“other”)

special items in the previous year mainly resulted from:

A expenses from the adjustment of provisions for pending

losses from transport contracts in the dB arriva business

unit

A expenses for the impairment of locomotives and real

estate, and personnel-related expenses within the

context of restructuring measures in the dB schenker

rail business unit

A expenses for the depreciation of the real estate port-

folio as well as for the impairment of concrete ties in

the dB netze track business unit

A income from the partial reversal of real estate provisions

and provisions for inherited environmental damage

(“other”)

A the reversal of personnel-related provisions and tax

provisions in Germany (“other”)

Development of operatinG profits

By Business unit

at the business unit level, the development of the adjusted

profits was negative in almost all areas, in comparison to

the previous year. the major declines in the dB netze track,

dB Bahn regional and dB schenker logistics business units

had significant effects.

please see the chapter Development of business units

[ page 144 ff. ] for detailed information.

æ

K


net profit for the year

Excerpt from statement of income [ € million ] 2013 2012

Change

absolute %

Profit before taxes 1) 876 1,525 – 649 – 42.6

Taxes on income 1) –227 – 66 – 161 –

actual tax expenses 1) – 146 – 156 + 10 – 6.4

deferred tax income 1) – 81 90 – 171 –

Net profit for the year 1 ) 649 1,459 – 810 – 55.5

thereof shareholder of DB AG 1) 657 1,453 –796 – 54.8

thereof minority interests 1) – 8 6 – 14 –

Earnings per share (€ )

undiluted 1) 1.53 3.38 – 1.85 – 54.7

diluted 1) 1.53 3.38 – 1.85 – 54.7


the negative development of profit before taxes was exac-

erbated by a worsening of the income tax position. this was

mainly a result of a negative trend in deferred tax assets at

dB aG. this reduced the net profit for the year (profit after

taxes) by € 810 million to € 649 million (previous year: € 1,459

million). accordingly, the net profit (after income taxes) for

the shareholder of dB aG was lower in the year under review

and fell to € 657 million (previous year: € 1,453 million). the

net profit attributable to minority interests declined and

amounted to € –8 million in the year under review (previous

year: € 6 million).

the earnings per share developed accordingly and stood

at € 1.53 in the year under review (previous year: € 3.38).

Deviation from the projected financial situation

Outlook for the 2013 financial year [ € million ] 2012

2013 (outlook

March 2013)

2013 (outlook

July 2013) 2013

Revenues 39,296 ~ 41,000 ~ 39,500 39,119

EBIT adjusted 2,708 > 2,800 ~ 2,200 2,236

ROCE (%) 8.3 >8.3 ~ 6.5 6.8

Redemption coverage (%) 22.1 >22.2 ~ 20 20.5

Following the positive revenue development in 2012, we had

expected in march 2013 this trend to continue in the 2013

financial year. We had believed the revenue would amount

to some € 41 billion. We revised the forecast in our interim

report January to June 2013 downwards to € 39.5 billion in

July 2013. this resulted from the expectation that the weak

development in the first half of 2013 would not be compen-

sated for in the second half of 2013 as a result of subdued

economic prospects as well as the expected damage in con-

nection with the floods. this adjusted forecast was not

achieved, as the adverse factors had an even stronger impact

than we expected.

in light of the development of operating profit in the 2013

financial year, we had assumed in march 2013 that a con-

tinued positive development in revenues and our ongoing

cost management would also be reflected favorably in the

development of the adjusted eBit. We expected an adjusted

eBit of more than € 2.8 billion. in July 2013, we also revised

the expectations of adjusted eBit downward to about € 2.2

billion. this was due to the weaker expected revenues, which

resulted in factor cost increases having a greater-than-ex-

pect ed impact on profit development. these include increases

in personnel expenses and energy costs in particular. this

outlook is in line with the developments of the year under

review.

We adjusted the forecasts for the value management

key figures of roce and redemption coverage respectively

to the decreasing expectations of operating profit figures.

accordingly, these are also covered with the developments

that transpired in the year under review.

Revenues outlook for the 2013 financial year [ € million ] 2012

2013 (outlook

March 2013)

2013 (outlook

July 2013) 2013

DB Bahn Long-Distance 4,074 q q 4,083

DB Bahn Regional 1) 8,908 e e 8,839

DB Arriva 3,757 q q 4,180

DB Schenker Rail 1) 4,926 q e 4,843

DB Schenker Logistics 15,389 q w 14,857

DB Services 1) 3,264 e w 3,184

DB Netze Track 1) 4,716 e e 4,769

DB Netze Stations 1,102 e e 1,119

DB Netze Energy 1) 2,870 q w 2,775

q above previous year’s figure e on the previous year’s level w below previous year’s figure1) Previous year’s figure adjusted for effects from the reclassification

of other operating income to revenues.

æ

æ

æ

K


at the business unit level, in march 2013 we assumed that

revenues would remain at the previous year’s level in the

dB Bahn regional, dB services, dB netze track and dB netze

stations business units. We expect an increase in revenues

in the remaining business units. as a result of weaker-than-

expected development, we adjusted our expectations in our

interim report January to June 2013, on the business unit level,

as well. in our transport and logistics business units, the out-

look deteriorated from positive to stable for dB schenker

rail and to negative for dB schenker logistics. the stable

outlook in the dB services business unit was also adjusted

downwards like the positive outlook in the dB netze energy

business unit.

the actual development of revenues is very much in line

with our forecasts. the dB Bahn regional and dB schenker

rail business units developed below the previous year’s

level as a result of performance declines. price effects in the

dB netze track business unit were able to overcompensate

for negative volume effects, meaning that revenues improved

slightly in comparison to the previous year.

EBIT outlook for the 2013 financial year [ € million ] 2012

2013 (outlook

March 2013)

2013 (outlook

July 2013) 2013

DB Bahn Long-Distance 364 q e 323

DB Bahn Regional 882 e w 777

DB Arriva 238 q q 245

DB Schenker Rail 87 q w 57

DB Schenker Logistics 418 q w 335

DB Services 84 e w 29

DB Netze Track 894 e w 665

DB Netze Stations 230 e e 229

DB Netze Energy 91 w w 71

q above previous year’s figure e on the previous year’s level w below previous year’s figure

in march 2013, we projected an increasing adjusted eBit for

the dB Bahn long-distance, dB arriva, dB schenker rail and

dB schenker logistics business units. We expected a lower

adjusted eBit in the dB netze energy business unit. our

operating profit outlook was stable in the remaining business

units.

Based on the assumption that economic conditions will not

fundamentally improve in the second half of 2013, we antici-

pated no significant recovery effects for the second half of

2013 with regard to the declines experienced in the first half

of 2013. For this reason, we revised downwards the outlook

regarding adjusted eBit for all business units, with the

exception of dB arriva, dB netze stations and dB netze

energy in our interim report January to June 2013. our trans-

port and logistic activities as well as dB netze track were

affected in particular.

our outlook from July 2013 is very much in line with the

developments of the year under review. the dB Bahn long-

distance business unit grew below the previous year’s level

due to the revenue losses caused by the floods.

Operational value addition

Operational value addition (adjusted ) [ € million ] 2013 2012

Change

absolute %

OrIGIn

Income (overall performance) 44,596 44,918 – 322 – 0.7

Cost of materials –20,366 –20,931 + 565 –2.7

Other operating expenses – 4,709 – 4,593 – 116 +2.5

Depreciation –2,903 –2,893 – 10 + 0.3

Value added 16,618 16,501 + 117 + 0.7

DIsTrIBuTIOn

Personnel expenses 14,382 13,793 + 589 + 4.3

EBIT adjusted 2,236 2,708 – 472 – 17.4

thereof interest income | Operational net interest 842 865 –23 –2.7

thereof income taxes (actual ) 146 156 – 10 – 6.4

thereof net profit 649 1,459 – 810 – 55.5

operational value addition experienced slight growth (year

under review: € 16.6 billion, previous year: € 16.5 billion). the

decline in overall performance was overcompensated for by

the lower costs of materials in the creation of added value.

the development of the distribution of value addition

was shaped by the significant increase in personnel expenses

in the year under review, meaning that the proportion of

employees in value addition increased significantly.

æ

!!!

æ

K


financial position

as well as aiming for a sustained rise in enterprise value,

dB Group’s financial management focuses on maintaining a

capital structure that will ensure excellent credit ratings.

please see Value management [ page 113 ff. ] for detailed infor-

mation on the key figures used – redemption coverage,

gearing and net financial debt /eBitda.

dB aG’s treasury serves as the central treasury for dB

Group. this structure ensures that all Group companies are

able to borrow and invest funds at optimal terms and condi-

tions. Before obtaining funds from external sources, we first

conduct intra-Group financing transactions. When borrowing

external funds, dB aG takes out short-term loans in its own

name, whereas non-current capital is generally obtained

through the Group’s financing company, deutsche Bahn

Finance B.v. (dB Finance), amsterdam/the netherlands.

the funds are passed on by dB ml aG to dB ml Group

companies within the context of a dual-level treasury con-

cept as short-term credit lines, which can be utilized as part

of cash pooling on internal current accounts and/or through

fixed short-term credit, or in the form of long-term loans.

dB Group’s infrastructure companies are linked directly

to dB aG’s treasury, however. this concept enables us to pool

risks and resources for the entire Group, as well as to con-

solidate our expertise, realize synergy effects and minimize

refinancing costs.

dB Group provides a long-term debt issuance program

[ www.db.de/mtn-e ] in the amount of € 20 billion. We issued a total

of eight bonds and/or private placements over the course of

the year under review through dB Finance and increased two

existing bonds. the total volume of transactions amounted

to € 2.4 billion. the terms of these bonds range from five up

to 15 years, and are issued in euros, norwegian krone, swiss

francs, us dollars and British pounds. the transactions were

placed mainly in Germany, Great Britain, Japan, scandinavia

and switzerland. a bond worth € 750 million was repaid in

the year under review. the debt issuance program was utilized

to the extent of € 15.7 billion as of december 31, 2013 (as of

december 31, 2012: € 14.0 billion). utilization of the program

increased in the year under review due to the refinancing of

expiring debts and the build-up of a higher cash position.

With respect to short-term financing, as in the previous year,

€ 2 billion was available from a multi-currency, multi-issuer

commercial paper program as of december 31, 2013. this had

not been utilized as of december 31, 2013 (as of december 31,

2012: no utilization). as of december 31, 2013, we also had

guaranteed unutilized credit facilities of € 2.0 billion (as of

december 31, 2012: € 2.0 billion), with a remaining term of

between 1.3 and 1.6 years as well as further guaranteed

unutilized credit facilities of € 0.1 billion (as of december 31,

2012: € 0.1 billion).

in addition, credit facilities of € 1.6 billion were available

for the operating business (as of december 31, 2012: € 1.5 bil-

lion). these credit facilities, which are made available to our

subsidiaries around the world, include provisions for financing

working capital as well as sureties for payment.

no major financed leasing transactions were concluded


Ratings confirmed

Ratings DB AGFirst

issued Last con-

firmation

Current ratings

Short- term Long-term Outlook

Standard & Poor’sMay 16,

2000Jun 28,

2013 A–1+ AA stable

Moody’sMay 16,

2000Jan 17,

2014 P–1 Aa1 negative

FitchFeb 17,

2009Dec 23,

2013 F1+ AA stable

the creditworthiness of dB Group is constantly monitored

by the rating agencies standard & poor’s (s & p), moody’s

and Fitch. in the year under review, these ratings agencies

conducted their annual rating reviews and subsequently

reconfirmed dB aG’s very good credit ratings. these have

remained unchanged since they were first issued in 2000.

please see our investor relations Web site for additional

information on Ratings [ www.db.de/rating-e ] and the rating

agencies’ complete analyses for dB aG.

!!! K


Value management

Value management goals [ % ] DB Group DB ML Group

Infra- structure

ROCE 10.0 14.0 8.0

Redemption coverage 30 50 30

Gearing 100 100 100

Net financial debt /EBITDA (multiple) 2.5 1.5 2.5

one of the key strategic directions of the DB2020 strategy

is profitable growth æ. this overarching aim is made up of

three top targets [ page 85 f. ]: profitability æ (roce), market

position æ (revenues) and financial stability æ (redemption

coverage). roce and redemption coverage are key elements

of our value management system. We also provide details on

the key debt figures gearing and net financial debt /eBitda

with the aim of managing our capital structure.

Within the context of our value management, we want

to maintain and increase dB Group’s enterprise value in the

long term, ensuring that capital expenditures can be made in

the core business. the financial management of dB Group –

and therefore also the monitoring of the success of our goals

for profitable growth – is performed on the basis of a value-

oriented management system based on key figures. the results

are an important factor for our strategic approach, capital

expenditures decisions, as well as employee and management

remuneration [ page 73 ].

our value management approach is based on profitability

and creditworthiness:

A profitability: cost-effectiveness as an overriding goal in

value management ensures that investors receive an

appropriate long-term rate of return over several economic

cycles. We calculate the weighted average cost of capital

(Wacc) of debt and equity capital on an annual basis

using market values. the actual return, roce, is calculated

as the ratio of operating earnings before interest and

taxes (adjusted eBit) to capital employed. the target

roce is set higher than the cost of capital. the long-term

aim is to keep the multi-year average roce above the

target, thereby covering the cost of capital. this target

roce corresponds to the minimum required rate of return

(mrr). the different business characteristics result in

different target values for our activities in dB mobility

logistics sub-group (especially passenger transport as

well as transport and logistics) and in the infrastructure.

the cost of capital and thus the expected returns from

the infrastructure business units are lower due to our

projection of continually low earnings volatility. the

operating business is always controlled before taxes,

based on the reporting of key figures primarily as pre-

tax figures.

A creditworthiness: as an asset-intense company, it is

essential that we have permanent access to the capital

market at favorable terms and conditions. consequently,

an additional material goal of value management is

achieving appropriate key debt figures from the stand-

point of our debt investors. the key figures for controlling

indebtedness are redemption coverage (ratio of operating

cash flow to the adjusted net financial debt), gearing

(ratio of net financial debt to equity), and the ratio of net

financial debt to adjusted eBitda. the target values for

the key debt figures are derived from key rating figures

as well as annual benchmarking with comparable compa-

nies with an excellent credit rating.

ROCE decreased

ROCE [ € million ] 2013 2012

Change

absolute %

EBIT adjusted 2,236 2,708 – 472 – 17.4

÷ Capital employed as of Dec 31 1) 33,086 32,642 + 444 + 1.4

ROCE (%) 6.8 8.3 – –

1) Previous year’s figure adjusted due to the retroactive application of IAS 19.

roce decreased by 1.5 percentage points during the year

under review. the decline is due to a considerable deterio-

ration of the adjusted EBIT [ page 107 f. ]. the increase in capital

employed also contributed to the decline in roce.

æ

æ

K


æ

ROCE [ % ]

2013 6.8

2012 8.3

2011 7.3

2010 6.0

2009 5.9

2008 8.9

2007 8.7

increaseD capital employeD

Capital employed as of Dec 31 [ € million ] 2013 2012

Change

absolute %

BA sED On A ssETs

Property, plant and equipment 37,696 37,630 + 66 + 0.2

+ Intangible assets /goodwill 4,115 4,186 –71 – 1.7

+ Inventories 948 989 – 41 – 4.1

+ Trade receivables 1) 4,113 4,202 – 89 –2.1

+ Receivables and other assets 1) 1,027 934 + 93 + 10.0

– Receivables from financing – 90 –72 – 18 +25.0

+ Income tax receivables 112 74 + 38 + 51.4

+ Assets held for sale 5 0 + 5 –

– Trade liabilities 1) – 4,379 – 4,406 +27 – 0.6

– Miscellaneous and other liabilities 1) – 3,290 – 3,332 + 42 – 1.3

– Income tax liabilities – 147 – 184 + 37 –20.1

– Other provisions – 4,883 – 5,162 +279 – 5.4

– Deferred income –2,141 –2,217 + 76 – 3.4

Capital employed 1 ) 33,086 32,642 + 444 + 1.4


the capital employed equates to the assets deemed neces-

sary for business and subject to the cost of capital as derived

from the balance sheet. the increase in capital employed is

mostly attributed to a reduction of other provisions and a

growth in receivables and other assets.

sliGht rise in the cost of capital

the cost of capital is updated annually in order to account for

changes in market parameters. We take the long-term focus

of the controlling concept into consideration and balance out

short-term fluctuations.

the pre-tax cost of capital for dB Group increased slightly

from 8.9 % to 9.1 % in the year under review, whereby the rise

for infrastructure was stronger than the decrease for dB ml

Group. the reason for this is an increase in beta factor

derived from a peer group comparison weighted by business

units at a consistently low level of interest. after taxes, the

cost of capital rate equated to 6.3 % (previous year: 6.2 %).

Cost of capital before taxes as of Dec 31 [ % ] 2013 2012

DB Group 9.1 8.9

DB ML Group 9.5 9.6


Cost of capital after taxes as of Dec 31 [ % ] 2013 2012

DB Group 6.3 6.2

DB ML Group 6.6 6.7


We calculate dB Group’s cost of capital as a weighted average

interest rate of equity, net financial debt and pension obli-

gations. this is determined once a year and reflects current

capital market parameters, the prevailing tax framework and

the value percentage of financing types used to finance capital

employed.

When determining the company-independent capital

market parameters market risk premium and risk-free interest

rates, short-term debt and equity market return fluctu ations

are smoothed out in line with the long-term focus of our

value management concept. the parameters are determined

on the basis of the yields of long-term Bunds (German gov-

ernment bonds) as well as the long-term average interest

rates of the German daX 30 share index. the parameters used

are also validated on the basis of up-to-date recommenda-

tions given by well-known valuation experts. the company-

independent capital market parameters beta and credit

spread measure the risk of our debt and equity financing in

comparison to alternative investment vehicles. Beta reflects

the risk of equity relative to the risks of the equity markets.

comparisons are performed against international benchmark

companies. the selection of peer group companies and their

aggregation to beta follows the business unit structure of

dB Group, dB ml Group and the infrastructure. the credit

spread corresponds to dB Group’s current issue costs relative

to Bunds with an assumed term of ten years. at dB ml Group,

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!!!

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the credit spread is determined in line with the market, using

current capital market data of companies with comparable

creditworthiness.

tax factors are calculated using a taxation rate of 30.5 %.

the tax factor for net financial debt reflects the German trade

tax on the attributable financing costs. remaining taxes are

fully assigned to the cost of equity.

the weighting of financing types is based on market

values. net financial debt and pension obligations are

valued at their carrying amounts. equity weighting is based

on recognized methods of company valuation.

the weighting of financing types for dB ml Group and the

infrastructure corresponds to that of dB Group as the tax

shield resulting from the tax-deductible status of debt

interest arises from dB Group’s fiscal unity.

roce further Below the cost of capital

Yield spread [ % ] 2014 2013 2012 2011 2010

ROCE – 6.8 8.3 7.3 6.0

Pre-tax WACC 1) 9.1 8.9 9.3 9.6 8.9

Spread (percentage points) – – 2.1 – 1.0 – 2.3 – 2.9

1) Each value taken at the beginning of the year.

in the year under review, the difference between the roce

and the cost of capital improved significantly to 2.1 per-

centage points (previous year: –1.0 percentage points).

!!!

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Derivation of cost of capital as of Dec 31, 2013 [ % ] [ DB Group DB ML Group Infrastructure ]

1) Impact of capital structure is reflected only in the tax shield; due to DB Group’s fiscal unity the capital structure of DB Group is used.

+

Capital market parameters Cost of capital Tax factor Cost of capital (WACC)

Market risk premium 6.0 Weighting 1) 40.5

Credit spread

0.85 1.10 0.85

WACC after taxes

6.3 6.6 5.2Weighting 1) 50.1

Weighting 1) 9.4

Equity12.0 12.5 9.3

1.44

Risk-free interest rate 2.5

1.00 1.00 1.00

1.03 1.04 1.02

Liabilities 3.4 3.6 3.4

Factor 1–30.5 %

Pension obligations

3.4 3.6 3.4

Net financial

debt

3.5 3.7 3.4

Equity17.3 18.1 13.4

WACC before taxes

9.1 9.5 7.5

x

x

x

x

x

x

x

+

+

Beta

un- levered

0.77 0.81 0.55

levered 1.58 1.67 1.13

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Financial debt ratios deterioratedreDemption coveraGe

Derivation of redemption coverage [ € million ] 2013 2012

Change

absolute %

EBITDA adjusted 5,139 5,601 – 462 – 8.2

+ Net operating interest 1), 2) – 842 – 865 +23 –2.7

Operating cash flow 4,297 4,736 – 439 – 9.3

Net financial debt 16,362 16,366 – 4 –

+ Present value operate leases 4,646 5,075 – 429 – 8.5

÷ Adjusted net financial debt 21,008 21,441 – 433 – 2.0


1) We use a net operating interest income, adjusted for those components of net interest income related to the compounding of non-current liabilities and provisions, to properly determine redemption coverage.

2) Adjusted for special items.

the redemption coverage as of december 31, 2013 was below

the previous year. this was due to a considerable reduction

in operating cash flow. the decline in adjusted net financial

debt could not compensate for this. the lower operating cash

flow is attributed to the deterioration in operating earnings.

æ

Redemption coverage [ % ]

2013 20.5

2012 22.1

2011 20.5

2010 18.1

2009 19.4

2008 22.5

2007 21.1

GearinG

Derivation of gearing [ € million ] 2013 2012

Change

absolute %

Financial debt 19,313 18,613 + 700 + 3.8

– Cash and cash equivalents and receivables from financing –2,951 –2,247 –704 + 31.3

net financial debt 16,362 16,366 – 4 –

÷ Equity 1) 14,912 14,978 – 66 – 0.4

Gearing (%) 1 ) 110 109 – –


Gearing remained practically unchanged over the course of

the year under review and is still just slightly up on the target

of 100 %. the decrease in equity was somewhat greater than

the decrease in net financial debt.

æ

Gearing [ % ]

2013 110

2012 109

2011 110

2010 118

2009 115

2008 131

2007 151

net financial DeBt/eBitDa

Derivation of net financial debt /EBITDA [ € million ] 2013 2012

Change

absolute %


÷ EBITDA adjusted 5,139 5,601 – 462 – 8.2

Net financial debt /EBITDA (multiple) 3.2 2.9 – –

the key figure for net financial debt /eBitda also deterio-

rated in the year under review due to the decline in adjusted

EBITDA [ page 107 f. ] with practically unchanged net financial

debt.

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Net financial debt /EBITDA [ multiple ]

2013 3.2

2012 2.9

2011 3.2

2010 3.6

2009 3.4

2008 3.1

2007 3.2

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statement of cash flows

Summary statement of cash flows [ € million ] 2013 2012

Change

absolute %

Cash flow from operating activities 3,730 4,094 – 364 – 8.9

Cash flow from investing activities – 3,716 – 3,243 – 473 + 14.6

Cash flow from financing activities 705 – 377 + 1,082 –

Net change in cash and cash equivalents 719 474 +245 + 51.7

Cash and cash equivalents as of Dec 31 2,861 2,175 + 686 + 31.5

cash flow from operating activities amounted to € 3,730 million

in the period under review, down considerably year on year.

effects from the deteriorated profit before taxes, depreciation

and interest (€ –892 million) were partly offset by positive

working capital effects.

the outflow of cash for investing activities increased by

€ 473 million to € 3,716 million in the period under review.

this was primarily the result of the € + 610 million increase

in capital expenditures in property, plant and equipment,

resulting due to an increase in gross capital expenditures

from the redemption of real estate leases of stations. in

contrast, proceeds from investment grants rose by € +246

million. the net outflow of cash from the acquisition of shares

in consolidated companies rose considerably due to the

acquisition of veolia eastern europe (€ +128 million).

the cash inflow from financing activity increased by

€ 1,082 million to € 705 million. this resulted from signifi-

cantly low net payments from the raising and repayment

of borrowings and commercial papers (€ – 639 million) as

well as lower payments for finance lease financing and the

redemption of Federal loans (€ –350 million). the increased

net proceeds from the issue and repayment of bonds

(€ +80 million) support this development.

as of december 31, 2013, dB Group had € 2,861 million in

cash and cash equivalents, up € 686 million from the end of

the previous year.

net financial debt

Net financial debt as of Dec 31 [ € million ] 2013 2012

Change

absolute %

Interest-free loans 1,644 1,789 – 145 – 8.1

Finance lease liabilities 634 1,098 – 464 – 42.3

Other financial debt 17,035 15,726 + 1,309 + 8.3

thereof bonds 15,454 14,096 + 1,358 + 9.6

Financial debt 19,313 18,613 + 700 + 3.8

– Cash and cash equivalents and receivables from financing –2,951 –2,247 –704 + 31.3


Within the figure reported for financial debt, interest-free

loans declined to € 1,644 million (as of december 31, 2012:

€ 1,789 million).

Finance lease liabilities dropped sharply as of december

31, 2013 primarily due to the redemption of real estate leases

and continuous repayments.

other financial debt was significantly shaped by the

development of the bond portfolio. Within the framework

of capital market activities, bonds were issued with a total

volume of € 2.4 billion (eight new issues and two increases

in existing bonds). at the same time, one bond with an

equivalent value of € 750 million was redeemed. Holdings

of outstanding bonds thereby increased by € 1,358 million

to € 15,454 million as of december 31, 2013.

in total, financial debt as of december 31, 2013 increased

by € 700 million to € 19,313 million. at the same time, cash

and cash equivalents (€ + 686 million) and receivables from

financing (€ +18 million) increased. accordingly, net financial

debt as of december 31, 2013 remained at its previous year’s

level of € 16,362 million (as of december 31, 2012: € 16,366

million).

æ

Net financial debt [ € billion ]

2013 16.4

2012 16.4

2011 16.6

2010 16.9

2009 15.0

2008 15.9

2007 16.5

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the maturity structure of financial debt is virtually

unchanged as of december 31, 2013. there was a slight

shift to non-current financial debt. the share of current

financial debt declined from about 8.1 % to about 6.5 %.

æ

Maturity structure of financial debt [ % ] [ 2013 2012 ]

less than 6.51 year 8.1

1 to 2 years 5.5 7.0

2 to 3 years 11.8 5.7

3 to 4 years 10.2 12.4

4 to 5 years 11.0 10.7

more than 55.05 years 56.1

the breakdown of financial debt is also virtually unchanged

as of december 31, 2013. the proportion of bonds was about

80 % (as of december 31, 2012: about 76 %). interest-free

loans had an almost unchanged proportion of about 9 % (as

of december 31, 2012: about 10 %). the share of finance lease

liabilities reduced to about 3 % (as of december 31, 2012:

about 6%).

æ

Breakdown of financial debt [ % ] [ 2013 2012 ]

Bonds 80.0 75.7

Interest- free 8.5loans 9.6

Finance lease 3.3liabilities 5.9

EUROFIMA loans 3.7 3.9

Bank borrowings / 4.5 other 4.9

capital expendituRes

Capital expenditures [ € million ] 2013 2012

Change

absolute %

Gross capital expenditure 8,224 8,053 + 171 +2.1

– Investment grants 4,812 4,566 +246 + 5.4

Net capital expenditures 3,412 3,487 – 75 – 2.2

the main focus of capital expenditure activities in the year

under review was again on measures designed to improve

performance and efficiency in the field of rail infrastructure

as well as the continued modernization of our vehicle fleet

for rail and bus transport. We have underlined our long-term

focus with gross capital expenditures in the amount of

€ 8,224 million. these were 2.1 % higher in the year under

review than in the previous year. at € 3,412 million, net

capital expenditures were somewhat below the previous

year’s level.

all business units – particularly in the dB netze track

and dB Bahn regional business units – posted higher gross

capital expenditures.

æ

Gross capital expenditures by divisions [ % ] [ 2013 2012 ]

Passenger 16.4Transport 16.8

Transport and 6.3Logistics 8.6


Other 3.1 3.4

the gross capital expenditures structure continued to be

dominated by the infrastructure business units, whereby

the highest expenditures were once again attributable to

dB netze track. in total, the infrastructure business units

accounted for roughly 74% of gross capital expenditures

(previous year: about 71 %), with the dB netze track busi-

ness unit alone accounting for roughly 65 % (previous year:

about 62 %). the passenger transport business units

accounted for about 16% (previous year: about 17 %), and

the transport and logistics business units accounted for

about 6% (previous year: about 9 %).

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Capital expenditures by regions

Gross capital expenditures by regions [ € million ] 2013 2012

Change

absolute %

Germany 7,681 7,269 + 412 + 5.7

Europe (excluding Germany) 494 778 –284 – 36.5

Asia /Pacific 67 47 +20 + 42.6

North America 17 15 +2 + 13.3

Rest of world 8 6 +2 + 33.3

Consolidation – 43 – 62 + 19 – 30.6

DB Group 8,224 8,053 + 171 + 2.1

Net capital expenditures by regions [ € million ] 2013 2012

Change

absolute %

Germany 2,872 2,703 + 169 + 6.3

Europe (excluding Germany) 491 778 –287 – 36.9

Asia /Pacific 67 47 +20 + 42.6

North America 17 15 +2 + 13.3

Rest of world 8 6 +2 + 33.3

Consolidation – 43 – 62 + 19 – 30.6

DB Group 3,412 3,487 – 75 – 2.2

Broken down by regions, the vast majority of gross capital

ex penditures, namely some 93 %, was again made in Ger-

many (previous year: about 90 %). Here, year-on-year growth

is primarily due to the dB netze track (€ +300 million),

dB netze stations (€ + 65 million) and dB Bahn regional

(€ +199 million) business units. this was partly offset by a

decline in capital expenditures, especially at dB schenker

rail (€ –105 million).

the strong year-on-year decline in europe (excluding

Germany) is as a result of lower capital expenditures in

the dB arriva (€ –193 million) and dB schenker rail (€ –84

million) business units.

in the asia/pacific region, dB schenker logistics increased

its capital expenditures in logistics facilities.

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Gross capital expenditures by regions [ % ] [ 2013 2012 ]

Germany 93.4 90.3

Other 6.6 9.7

Development of investment grantsreceived investment grants declined by € 246 million, or

5.4%, in the year under review to € 4,812 million. as in the

previous year, the recipients were almost exclusively our

infrastructure companies.

please see our Web site for details on the various grants

available [ www.db.de/capex ].

æ

Investment grants by contributors [ % ] [ 2013 2012 ]

Federal Republic 82.8of Germany 85.2

Federal states 11.2 9.7

European Union 5.9 5.0

Other 0.1 0.1

æ

Investment grants by recipients [ % ] [ 2013 2012 ]




Other 0.5 0.9

balance sheet

Balance sheet as of Dec 31 [ € million ] 2013 2012

Change

absolute %

Total assets 1) 52,894 52,525 + 369 + 0.7

A ssETs

Non-current assets 1) 43,949 44,241 –292 – 0.7

Current assets 8,945 8,284 + 661 + 8.0

EquIT y AnD lIABIlITIEs

Equity 1) 14,912 14,978 – 66 – 0.4

Non-current liabilities 1) 26,284 25,599 + 685 +2.7

Current liabilities 11,698 11,948 –250 –2.1


æ

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Balance sheet as of Dec 31 [ % ] [ 2013 2012 ]

sTruCTurE A ssET sIDE

Non-current 83.1assets 84.2

Current assets 16.9 15.8

sTruCTurE EquIT y AnD lIABIlITIEs sIDE

Equity 1) 28.2 28.5

Non-current 49.7liabilities 1) 48.7

Current 22.1liabilities 22.8


the consolidated financial statements are prepared in accor-

dance with the international Financial reporting standards

(iFrs). they were influenced by the amended provisions of

IAS 19 [ page 211 f. ], which were applicable for the first time in

the year under review. there were no other material changes

to the iFrs regulations and dB Group’s consolidation and

accounting principles that would result in any changes to the

consolidated financial statements.

as of december 31, 2013, total assets increased slightly

by € 369 million (+ 0.7 %) to € 52,894 million (as of december

31, 2012: € 52,525 million).

non-current assets amounted to € 43,949 million and were

down 0.7 %, or € 292 million, year on year (as of december 31,

2012: € 44,241 million). this was primarily due to the decline

in active latent taxes by € 180 million from € 1,584 million as

of december 31, 2012 to € 1,404 million as of december 31,

2013, as well as the decrease in derivative financial instru-

ments by € 104 million from € 178 million as of december 31,

2012 to € 74 million as of december 31, 2013. the decrease in

intangible assets by € 71 million to € 4,115 million was almost

entirely offset by the slight increase in property, plant and

equipment by € 66 million to € 37,696 million.

as of december 31, 2013, current assets rose by € 661 mil-

lion (+ 8.0 %) to € 8,945 million (as of december 31, 2012:

€ 8,284 million). this was primarily due to the € 686 million

rise in cash and cash equivalents to € 2,861 million as well

as the € 72 million increase in other liabilities and assets to

€ 889 million. trade receivables fell by € 89 million to

€ 4,113 million, however.

this has resulted in a slight structural shift towards

current assets.

on the equity and liabilities side of the balance sheet,

equity as of december 31, 2013 decreased slightly by € 66

million (– 0.4%) to € 14,912 million (as of december 31, 2012:

€ 14,978 million). this resulted from the payment of divi-

dends as well as changes made in reserves in connection with

volatility in currencies and hedges, which in total exceeded

the net profit for the year. the equity ratio remained almost

stable at 28.2 % as of december 31, 2013 (as of december 31,

2012: 28.5 %).

non-current liabilities rose by € 685 million (+2.7 %) to

€ 26,284 million, while current liabilities declined by € 250

million (–2.1 %) to € 11,698 million. this growth was pri-

marily driven by the increase in financial debt [ page 117 f. ] by

€ 956 million.

Within the structure of the equity and liabilities side of the

balance sheet, the share of non-current liabilities in relation

to total assets increased slightly to 50 % as of december 31,

2013 (as of december 31, 2012: about 49 %). the share held by

current liabilities sank to about 22 % as of december 31, 2013

(as of december 31, 2012: about 23 %).

æ

Equity ratio [ % ]

2013 28.2

2012 28.5 1)

2011 29.2

2010 27.5

2009 27.6

2008 25.2

2007 22.6

1) Figure adjusted due to the retroactive application of IAS 19.

Off-balance-sheet financial instruments and non-recognized assetsin addition to the assets shown in the Group’s consolidated

balance sheet, dB Group also uses off-balance-sheet finan-

cial instruments and assets that cannot be recognized in the

balance sheet. the off-balance-sheet financial instruments

are primarily leased or rented goods (operate leases). a

present value is calculated within the value management

K


system for operate leases. this amounted to € 4,646 million

as of december 31, 2013 (as of december 31, 2012: € 5,075 mil-

lion). dB arriva enters into operate lease contracts, in some

cases due to regulatory requirements, especially in con-

junction with providing vehicles for rail passenger and road

passenger transport. in the year under review, no individual

major transactions were carried out that would have had

a significant impact on the financial position. accordingly,

no significant future effects or changes are to be expected

in this respect.

regarding retirement benefit obligations for employees,

obligations for each retirement plan are, to some extent,

covered and netted by plan assets which are capable of being

netted. as of december 31, 2013, total obligations amounted

to € 6,671 million (as of december 31, 2012: € 6,295 million),

the fair value of plan assets was € 3,109 million (as of decem-

ber 31, 2012: € 2,883 million), and the net liability recognized

in the balance sheet amounted to € 3,164 million (as of decem-

ber 31, 2012: € 3,074 million). the offsetting of obligations

against plan assets resulted in a € 3,109 million drop in total

assets (as of december 31, 2012: € 2,891 million). in the year

under review, no endowments were carried out that would

have had a significant impact on the financial position. accord-

ingly, no significant future effects are to be expected in this

respect. More information [ page 206 ff. ] on this subject can be

found in the notes to the consolidated financial statements.

With one minor exception, dB Group does not use off-

balance-sheet special-purpose entities. these off-balance-

sheet financial instruments are therefore of no significance

for dB Group’s asset situation. additional off-balance-sheet

financial instruments, like factoring, are likewise not used in

dB Group. accordingly, no significant future effects are to

be expected in this respect.

Exercising of balance sheet voting rightsplease see the notes to the consolidated financial state-

ments for details on the exercising of balance sheet voting

rights [ page 208 ff. ].

Deviations from the projected financial and asset situation

Outlook for the 2013 financial year 2012

2013 (outlook

March 2013)

2013 (outlook

July 2013) 2013

Gross capital expenditures (€ million) 8,053 > 8,500 ~ 8,500 8,224

Net capital expenditures (€ million) 3,487 > 4,000 ~ 4,000 3,412

Maturity (€ billion) 1.7 1.5 1.5 1.5

Bond issues (€ billion) 2.2 ~ 2.0 ~ 2.0 2.4

Cash and cash equivalents as of Dec 31 (€ billion) 2.2 ~ 2.0 ~ 2.0 2.9

Net financial debt (€ billion) 16.4 ~ 17.0 ~ 17.0 16.4

in terms of capital expenditures, we assumed in march 2013

that both gross and net capital expenditures would be con-

siderably higher than in the previous year in the year under

review. as a result of the economic development in the first

half of 2013, we revised downwards the forecast in our interim

report January to June 2013 and expected a weaker increase

in capital expenditures than was forecast in march 2013. due

to countermeasures introduced as a result of the overall

economic climate, gross capital expenditures were even lower

than was forecast in July 2013. net capital expenditures were

significantly lower than the forecast from July 2013.

regarding the financial situation of dB Group, we expected

maturities in the amount of € 1.5 billion in march and July

2013. the outlook is in line with the developments of the

year under review. in order to meet our need for financing,

we worked from the assumption that we would make use

of the financial markets with bond issues in the amount of

about € 2.0 billion. to increase financial flexibility whilst

exploiting very attractive financing conditions, we issued

more bonds in the year under review than forecast.

regarding dB Group’s cash and cash equivalents, in

march and July 2013, we expected these to amount to be

in the region of € 2.0 billion. We exceeded this value con-

siderably as a result of the lower than planned net capital

expenditures. We expected the significant increase in the

net capital expen ditures financed by us not to be able to

be fully financed through operating cash flow. For this

reason, we expected the net financial debt to increase

slightly and amount to about € 17.0 billion. due to the net

capital expenditures being lower than expected, net finan-

cial debt developed more positively than expected and

remained at the same level as in the previous year.

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122 Customer and quality122 Customer and quality initiative continues122 Improvements launched with passenger advisory board122 Development of punctuality123 Customer satisfaction123 Measures to improve the quality of products and services125 Awards


Customer and qualityA A

Customer and quality initiative continues

Floods affected service quality

Punctuality suffered

Customer and quality initiative Continues

In the year under review, we continued our customer and

qual ity initiative ¿ launched in 2010. We spent roughly

€ 425 mil lion on this initiative (of which about € 328 million

was for capital expenditures) in the year under review.

In the past year, we focused primarily on preparatory

measures aimed at improving operations, especially on harsh

winter days. In May 2013 the rail test of the German transport

Club (Verkehrsclub Deutschland; VCD) confirmed that the

measures we used had proven themselves. the customer

and quality initiative provided support to preparations for

winter 2013/14 as well. Measures from the previous years

were continued, optimized and expanded.

Since the beginning of 2013, the customer and qual ity

initiative has focused particularly on continuous improve-

ment of punctuality in passenger and freight transport.

this continuous improvement is a central component of our

perfor mance pledge and above all moves us closer to the

achievement of our DB2020 strategic targets for the stra-

tegic direction customer and quality ¿. the main focus of our

customer and quality initiative is the reduction of daily

occurrences of disruptions, especially through operative

planning measures. A broad-based portfolio of corre-

sponding improvement projects was initiated in the busi-

ness units DB Bahn long-Distance, DB Bahn Regional, DB

Schenker Rail and DB netze track. the partic ular challenge

was to manage the effects of an increasing transport

volume on the German rail network as well as the in creased

volume of construction and maintenance work.

the customer and quality initiative is also a central

platform for exchange for DB Group-wide improvement

management.

improvements launChed with passenger advisory board

We first convened a passenger advisory board in 2004. the

30 volunteer members came from all important passenger

groups in regional and long-distance transport. In twice-yearly

regular meetings, they come together to discuss indepen-

dently and candidly the image and quality of products and

services with DB executives. over the past ten years, the

passenger advisory board has advised and initiated a series

of projects and measures for the benefit of customers. In the

year under review, the emphasis of the cooperative work was

on the establishment of what is by now the fourth passenger

advisory board as well as the identification of potential

improvements of services at passenger stations, the cus-

tomer-friendly revision of the passenger rights form and the

optimization of correspondence with customers. Members

of the passenger advisory board were also included in

various projects and workshops of DB Group, for example

for the optimization of information at passenger stations

and for improved communication with customers.

development of punCtuality

Product quality ¿ is one of the top three goals of our customer

and quality ¿ strategic direction. the central indicator of this

is punctuality performance in the individual business units.

In passenger transport, our customers measure quality first

and foremost on the basis of punctuality. Connection quality

is another important benchmark that we intend to reliably

guarantee for our customers.

to measure punctuality ¿, we always measure the sched-

uled arrival time in comparison to the actual arrival time for

each train. the arrival of punctual trains and trains with a

delay of up to a specified time period were summarized

in the degree of punctuality. In the year under review, we

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123Group manaGement report CuStoMeR AnD quAlIty

continuously pursued the projects that were initiated in the

previous year to improve the quality of service. For instance,

we constantly analyze the reasons for delays and use these

to derive measures for improving punctuality and helping

people make their connections.

Punctuality in passenger transport (rail ) [%] 2013 2012 2011

_

Rail passenger transport in Germany 94.1 94.6 94.8

In the year under review, we again recorded a decrease in the

average degree of punctuality for all passenger trains. After

an annual average of 94.6% measured in the previous year,

the overall degree of punctuality fell to 94.1 %.

the year under review was characterized by numerous

negative one-time effects such as storms, route closures due

to flooding [ page 168 ] , adverse effects due to mining damage

[page 168 ] and further events, such as, for example, restrictions

to operations due to theft of cables [page 181 ]. Punctuality in

long-distance transport [page 148 f.] was affected most of all,

but punctuality in regional transport [page 151 ] also decreased

slightly.

the percentage values presented reflect the share of

punctual stops as a share of all stops along the way and at the

end of routes. A stop is considered punctual if the planned

time of arrival has not been exceeded by more than six min-

utes. punctuality statistics describe the more than 800,000

trips undertaken by DB passenger transport trains in one

month. the punctuality survey includes the more than 20,000

monthly long-distance train runs and the 780,000 each month

in local transport, including all S-Bahn (metro) lines.

Customer satisfaCtion

Details of customer satisfaction developments in the busi-

ness units will be explained further in the Development of

business units [page 144 ff.].

Satisfaction of corporate customersthis yearʼs analysis of customer satisfaction in corporate cus-

tomer sales showed that the satisfaction of our corporate

customers increased in the year under review to a satisfaction

index (SI) of 71 on average (previous year: SI of 69). A total

of 450 customers were surveyed from the segments top

account and key account (SI of 69, previous year: SI of 70),

accounts (SI of 72, previous year: SI of 68) as well as small-

and medium-sized enterprises (SI of 71, previous year: SI of

69). the travel managers or persons responsible for travel

expressed satisfaction on the whole with the corporate cus-

tomer program bahn.corporate. We received high satisfaction

scores across all customer groups in the area of customer

service.

Satisfaction with DB Bahn SalesDB Bahn Sales is responsible for marketing and sale of tickets

for our passenger transport as well as for many other transport

companies. the most important sales channels used are

travel centers, vending machines, travel agencies, the Internet,

mobile ticketing, call centers, subscription centers and on-

train sales. Customers who use these services are passengers

and contracting organizations of transport serv ices. In the

year under review, customer satisfaction, including on the

occasion of the most recent ticket purchase, increased to an

SI of 84 (previous year: SI of 82).

measures to improve the quality of produCts and serviCes

In the year under review, we again committed to, initiated

or implemented numerous measures that were aimed at

improving the quality of our products and services ¿:

Passenger TransportticketinG

A the separate apps DB navigator and DB tickets were com -

bined into one single app. In addition, the discount fare

finder known from bahn.de was integrated into the app.

A A smartphone ticket can now be booked for many inter-

national connections. the international smartphone

ticket may be ordered for travel to the netherlands,

Belgium, France, Italy and Austria. travel with the IC Bus

to prague and Krakow may also be purchased through

the DB navigator app and on the Web site m.bahn.de.

Regional transport customers can also book selected

state-wide länder-tickets as smartphone tickets. this is

possible in eight Federal states at present.

A our customers may also now use the payment system

“instant bank transfer” for the purchase of online tickets,

for online booking of paper tickets sent by mail and for

seat reservations.

¿

K


A the e-ticketing procedure touch & travel is now also avail-

able to customers of the mobile phone operator e-plus.

our touch & travel service may also be used on interna-

tional routes to Brussels, Copenhagen, Aarhus, Verona,

Bologna and Venice.

customer information

A A dynamic map of our entire rail network is displayed on

the Web site bahn.de/trainradar. trains are displayed

dy nam ically on the map. When a user clicks on a train or

enters a specific train number, a layer of detailed infor-

mation about the route and actual punctuality may be

displayed optionally in real time. Clicking on a train sta-

tion shows its departure schedule and the punctuality

information of each train.

A the delay alarm informs our customers about changes

with respect to their selected connection. Customers

may choose themselves whether they want to be in formed

by e-mail or directly as a push message to their smart-

phone in the DB navigator app.

A We are expanding our successful social media presence

on twitter and Facebook with our new Google+ channel.

A our customers are able to optimize their travel planning

with our new mobility platform qixxit [www.qixxit.de] that

integrates various means of transport and travel

information.

A By the end of 2013, we had equipped about 1,200 region al

buses of DB Bahn Regional with a computer-supported

operational control system. the system contributes to

more comprehensive customer information and an im -

proved assurance of connections between bus and rail.

BahncarD

A Since March, our customers using the e-ticketing proce-

dure touch & travel are also able to use the City ticket

function of the BahnCard in 12 cities. With this function,

BahnCard holders can travel without charge on local

public transport networks in the inner city region of

their origin and destination on long-distance trips of at

least 100 km.

A Since April 1, 2013, all BahnCard holders travel in the

DB long-distance transport with 100 % eco-power without

additional charge.

A With the inclusion of IC Bus in the DB price system, Bahn-

Card holders receive the usual discounts, including the

City ticket Function for local public transport, for IC Bus

travel as well.

other

A In order to involve our customers more intensively in the

interior design of trains, in the future we will use an ICe t

as a “rolling train lab.” A newly designed restaurant car,

an innovative leD lighting concept and new sinks will be

tested. Results of the test run will also help to decide

which style will be used in the subsequent redesign of

the ICe 3 fleet.

A We have expanded the cleaning of our ICe trains while in

service. A total of 50 new employees were hired and an

additional € 3 million was invested.

A In March 2013 the third DB Regional train lab event took

place in Aschaffenburg and in August 2013 the fourth took

place in Frankfurt am Main. With the train lab, we want

to develop improvements in dialog with our pas sengers.

A We have continued to improve Internet connectivity in

our trains. Along with the rail network of our ICe trains,

where Internet connectivity is possible on about 3,000

km of our lines, we are also concentrating on expanding

connectivity on rural lines.

Transport and Logistics A DB Schenker Rail began in Germany with the implemen-

tation of the network rail business model. So-called

blocking planning, by which customers make a binding

booking for their shipments and DB Schenker Rail can

develop a binding transport plan, has since then been con-

ceptualized almost completely across all branches and

has been implemented for more than 80 customers. In

addition, the two-step booking process has been agreed

to by more than 100 customers and is currently being

introduced. only capacity-audited cars may be booked

on the more than 170 connections to date. In the coming

years, transports from customers in all branches, includ-

ing inter national, should be conducted according to the

network rail principle.

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125Group manaGement report CuStoMeR AnD quAlIty

A DB Schenker logistics plans to open more than 30 Shared

logistics Centers (SlC) worldwide in the next five years

as logistics centers for common use by multiple custom-

ers. this capital expenditure represents 500,000 m² of

highly modern logistics space. the facilities should be con-

structed at strategic locations near the hubs of freight

traffic as well as in growth regions in which increased

customer demand can reasonably be expected in the

medium term.

A DB Schenker logistics is expanding its service offerings

for the global pharmaceutical /health care sector with 26

contract logistics locations in 15 countries. Specialized

logistics centers were opened in Korea, India, the philip-

pines and the netherlands.

A the DB Schenker smartbox service was expanded by two

additional offers with special focus on the pharmaceutical

sector and warehouse storage for the logistics area. the

individual modules of the DB Schenker smartbox family

offer solutions for all modes of transport and application

areas along the entire supply chain.

A DB Schenker Rail rolled out cross-border continuous

production management of transports with the help of

“euro pean operations Management (euRoM)” in the

european network for all transport on the north-south

and east-west axes in europe.

A DB Schenker Rail established the Customer-Relationship-

Management-platform “tWIns” for all companies in order

to improve customer management.

Infrastructure A Internet access via WiFi is now possible at 105 train sta-

tions. the first half-hour of WiFi access is free.

A About 50 traffic stations were provided with wheelchair

access. on the whole, about three-quarters of all of our

train platforms have wheelchair access.

A About 5,500 dynamic visual displays in 3,600 train sta-

tions provide trip information even in smaller stations

according to the two-sense principle. By the end of 2015,

the equipping of all of our train stations with dynamic

visual displays will be completed.

A We want to improve safety in our train stations continually.

Among other measures, we are equipping our stations

with new video technology.

A About 250 train stations were modernized as part of the

infrastructure improvement acceleration program [page 170 ].

awards

A DB Bahn Regional won the Innovation prize of the German

education prize 2013 for the special role model function

of the project “pro InFo Kin.” the goal of this pilot project

is the better integration of mobile employees in regional

transport with education management.

A DB Arriva was voted by passengers in Denmark and the

netherlands as the top train operating company.

A In november 2013, london overground Rail operations

limited (loRol), our joint venture with the MtR, was

awarded the prize “european Commuter operator of the

year” by the european Railroad Congress.

A DB Schenker logistics in london was awarded the title

“Global Freight Forwarder of the year” by Air Cargo news.

this competition that has now been running for 30 years

is the oldest and most highly respected award of its kind

in air freight.

A Cargo 2000, the organization for quality standards in the

air freight industry, awarded platinum membership to

DB Schenker logistics. By doing so, Cargo 2000 paid trib-

ute to DB Schenker logistics’ leading position in air freight

as well as the company’s quality management. DB Schen-

ker logistics is one of only two logistics service providers

and five carriers worldwide which have achieved this level

of quality.

A DB Schenker logistics in Vienna was awarded the “trigos”

award in 2013. the prize was awarded to companies that

did more than the legal minimum to carry out their social

and environmental responsibility.

A the pro-Rail Alliance awarded the “train Stations of the

year” prize. the prize is divided into a “City train Station

of the year” award and a “town train Station of the year”

award. the stations of the year 2013 were Göttingen and

oberursel. the special prize “tourism,” awarded for the

second time, was won by Murnau in upper Bavaria.

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126 Social126 Development of the number of employees128 Implementation of the HR2020 program


Development of the number of employees

Employees by business unit as of Dec 31 [ FTE ] 2013 2012

Change

absolute %

DB Bahn Long-Distance 16,564 15,947 + 617 + 3.9

DB Bahn Regional 36,878 36,959 – 81 – 0.2

DB Arriva 46,718 39,545 + 7,173 + 18.1

DB Schenker Rail 30,925 31,770 – 845 –2.7

DB Schenker Logistics 64,051 64,199 – 148 – 0.2

DB Services 26,319 26,375 – 56 – 0.2

DB Netze Track 42,206 41,400 + 806 + 1.9

DB Netze Stations 4,835 4,797 + 38 + 0.8

DB Netze Energy 1,753 1,626 + 127 + 7.8

Other 25,404 24,890 + 514 +2.1

DB Group 295,653 287,508 + 8,145 + 2.8

± Effects from changes in scope of consolidation – 6,397 – – 6,397 –

DB Group comparable 289,256 287,508 + 1,748 + 0.6

Employees by business unit as of Dec 31 [ natural persons ] 2013 2012

Change

absolute %

DB Bahn Long-Distance 17,621 16,963 + 658 + 3.9

DB Bahn Regional 38,496 38,551 – 55 – 0.1

DB Arriva 48,715 42,274 + 6,441 + 15.2

DB Schenker Rail 31,290 32,127 – 837 –2.6

DB Schenker Logistics 66,795 67,005 –210 – 0.3

DB Services 27,344 27,466 – 122 – 0.4

DB Netze Track 42,930 42,066 + 864 +2.1

DB Netze Stations 5,095 5,046 + 49 + 1.0

DB Netze Energy 1,783 1,649 + 134 + 8.1

Other 26,850 26,200 + 650 +2.5

DB Group 306,919 299,347 + 7,572 + 2.5

In order to guarantee better comparability over time, the

number of employees within DB Group is calculated on the

basis of full-time employees (Fte). Figures for part-time

employees are measured in accordance with their share of

the regular annual working time.

on a comparable basis, DB Group had 289,256 employees as

of December 31, 2013, an increase of 1,748 employees com-

pared to December 31, 2012 (+ 0.6%). this increase resulted

mostly from the expansion of business of DB Arriva and

new hires in DB netze track and DB Bahn long-Distance.

the effects arising from changes in the scope of consolida-

tion are almost exclusively the result of the acquisition of

Veolia eastern europe (+ 5,688 employees).

As of December 31, 2013, the number of employees (nat-

ural persons) within DB Group had risen to 306,919 (as of

December 31, 2012: 299,347).

†

Employees (FTE) by divisions as of Dec 31 [ % ] [ 2013 2012 ]

Passenger 33.9Transport 32.2

Transport 32.1and Logistics 33.4


Other 17.5 17.7

Employees (FTE) by business unit as of Dec 31 [ % ] 2013 2012

DB Bahn Long-Distance 5.6 5.5

DB Bahn Regional 12.5 12.9

DB Arriva 15.8 13.8

DB Schenker Rail 10.5 11.1

DB Schenker Logistics 21.7 22.3

DB Services 8.9 9.2




Other 8.5 8.5

†

†

†

SocialA A

More than 11,000 employees newly hired in Germany

Measures derived from employee surveys being implemented

Optimized personnel planning according to current and future requirements

K

127Group manaGement report SocIAl

Employees by region

Employees by regions as of Dec 31 [ FTE ] 2013 2012

Change

absolute %

Germany 187,837 186,222 + 1,615 + 0.9

Europe (excluding Germany) 84,228 77,205 + 7,023 + 9.1

Asia /Pacific 13,702 13,958 –256 – 1.8

North America 7,326 7,592 –266 – 3.5

Rest of world 2,560 2,531 +29 + 1.1

DB Group 295,653 287,508 + 8,145 + 2.8

Employees by regions as of Dec 31 [ natural persons ] 2013 2012

Change

absolute %

Germany 195,912 194,020 + 1,892 + 1.0

Europe (excluding Germany) 87,270 81,055 + 6,215 + 7.7

Asia /Pacific 13,755 14,030 –275 –2.0

North America 7,421 7,704 –283 – 3.7

Rest of world 2,561 2,538 +23 + 0.9

DB Group 306,919 299,347 + 7,572 + 2.5

the number of employees in the regions Germany and

europe (excluding Germany) had increased noticeably as

of December 31, 2013.

In Germany, the rise resulted in particular from increased

staffing requirements in the business units DB netze track

and DB Bahn long-Distance. We hired a total of about 11,500

new employees in Germany and retained some 2,400 trainees

in the period under review. the total was somewhat reduced

by employees leaving service due to normal turnover and

due to age.

In the region europe (excluding Germany), the number of

employees in the business unit DB Arriva increased primarily

due to the acquisition of Veolia eastern europe.

the share of employees outside of Germany accounted for

about 36% of total employees as of December 31, 2013 (as

of December 31, 2012: about 35 %).

†

Employees (FTE) by region as of Dec 31 [ % ] [ 2013 2012 ]

Germany 63.5 64.8

Europe 28.5(excluding Germany) 26.9

Asia /Pacific 4.6 4.9

North America 2.5 2.6

Rest of world 0.9 0.8

employees in Germany

Employee loyalty as of Dec 31 [ years ] 2013 2012 1)

Change

absolute %

Average years of service 21 22 – 1 – 4.5

Average age 46 46 – –

1) Domestic rates excluding DB Schenker Logistics.

the average years of service of DB Group employees in Ger-

many was 21 years. employees of DB Group in Germany were

an average of 46 years old.

Employee turnover 1) [ natural persons ]

2013 2012

absolute % absolute %

< 30 years old 1,063 5.4 1,404 6.9

Women 305 5.6 377 6.5

Men 758 5.4 1,027 7.1

30 – 49 years old 1,572 1.8 1,893 2.1

Women 305 1.5 365 1.7

Men 1,267 2.0 1,528 2.3

≥ 50 years old 4,918 6.4 5,530 7.3

Women 749 5.9 784 6.3

Men 4,169 6.5 4,746 7.5

Total turnover 7,553 4.2 8,827 4.8

Other turnover 4,649 2.6 5,037 2.7

Turnover due to retirement 2,904 1.6 3,790 2.1

1) Germany (companies with about 97 % of domestic employees). These figures reflect only turnover of core employees with permanent contracts. Turnover due to retirement also includes cases of semi-retirement.

turnover fell compared to the previous year due to a reduction

of previously concluded semi-retirement agreements.

New hires 1) by gender as of Dec 31 [ natural persons ] 2013 2012

Change

absolute %

< 30 years old 4,990 4,938 + 52 + 1.1

Share of women (%) 33.1 32.4 – –

30 – 49 years old 5,204 4,981 +223 + 4.5

Share of women (%) 27.4 25.0 – –

≥ 50 years old 1,287 1,180 + 107 + 9.1

Share of women (%) 22.8 21.1 – –

Total 11,481 11,099 + 382 3.4

1) Germany (companies with about 97 % of domestic employees). Not included are hiring and takeover of trainees and dual degree students.

to meet our future staffing needs, which arise especially due

to losing many employees to retirement, we will need to hire

an average of between 7,000 and 8,000 new employees per

year in the years to come. At the same time we must en -

courage the career development and retention of our current

employees.

†

†

†

†

†

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Employees 1) by type of contract as of Dec 31 [ natural persons ] 2013 2012

Change

absolute %

Permanent 182,630 179,269 + 3,361 + 1.9

Share of women (%) 22.1 21.6 – –

Temporary 7,606 7,303 + 303 + 4.1

Share of women (%) 29.6 29.9 – –

1) Germany (companies with about 97 % of domestic employees).

Average number of external temporary employees 1) [ natural persons ] 2013 2012

Change

absolute %

| Temporary employees 2,303 2,491 – 188 –7.5


the 95 % share of employees with permanent employment

agreements in DB Group in Germany continues to be at a

very high level. the share of external temporary employees

remained stable compared to the previous year.

ImplementatIon of the hr2020 program

Becoming one of the top ten employers † in Germany is a central

aim of the DB2020 strategy. We want to recruit and retain

qualified specialists and talented young staff members.

With the following six HR2020 † programs, the human

resources strategy contributes to the implementation of the

DB2020 strategy: strategic personnel planning, personnel

recruitment, career development, corporate culture, employ-

ment conditions and optimization and internationalization

of HR work.

Strategic personnel planningWith strategic personnel planning (Spp), we create transpar-

ency on future staffing and staffing needs for key employee

groups. We now cover about half of domestic employees

with Spp based on unified DB Group standards, methods,

and jointly developed business scenarios. Future personnel

shortages or surpluses are identified by function and region.

In order to introduce corresponding countermeasures,

options for action are investigated and evaluated.

We want to bring the impetus from Spp more strongly into

the regions and work with it across all business units with the

help of regional Spp events. In addition, we want to establish

Spp in DB Group worldwide. the first inter national Spp

models have been developed in pilot projects (DB Schenker

Rail polska, DB Arriva Denmark). In order to optimize per-

sonnel planning and management in the short and medium

term, we are moving forward with a standardized picture of

personnel needs in a uniform It system in Germany.

review of onGoinG planninG processes

As a result of personnel shortages, which became obvious in

summer 2013 in Mainz [ page 169 f. ], we have agreed with the

Railway and transport Workers union (eVG) and representa-

tives of the Group Works council (KBR) to review ongoing

personnel planning. In october 2013 the personnel situation

was evaluated together with the Works councils with parti c -

ipation by our employees. Results of the evaluation of per-

sonnel planning led in november 2013 to an agreement

between the DB Group representatives, the KBR and the

eVG. By this agreement, an additional 1,250 employees should

be employed in DB Group and an additional 450 employees

temporarily hired in order to reduce overtime and unused

holiday entitlements. the financial incentive to save overtime

in long-term accounts was improved for the year under review.

We have also reached agreement with employee representa-

tives on the key points of a unified framework regulation for

personnel planning.

Personnel recruitment In the year under review, personnel recruitment was reorga-

nized both for content and organization, and recruiting, per-

sonnel marketing and applicant management were bundled

into a new organizational unit. this unit is responsible in

Germany for the strategic directions of the employer brand,

in order to achieve a place for DB Group as one of the top ten

employers † in the market for applicants. Seven regional

recruiting teams work closely with local HR officers and with

the business units. they provide for a unified presentation

in the market and for rapid filling of positions.

Top employer 1) 2013 2012

Change

absolute %

| Rank 22 31 + 9 –

1) Derived from individual values for the four DB Group recruiting groups. Weighted target group values from six ranking surveys conducted by trendence.

†

!!!

†

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our image as an employer improved strongly in the year

under review. Based on ranking surveys conducted by tren-

dence, europe’s leading research institute in the area of

employer branding, personnel marketing and recruiting, we

improved especially from rank 46 to rank 25 on the ranking

of favorite employer among schoolchildren. We improved

our rank from 21st to 12th rank among university graduates

with work experience. on the basis of all DB Group recruiting

target groups, we were able to improve our rank from the

previous year by nine places, from rank 31 to rank 22.

contributing to this was the employer branding cam-

paign “A job like no other” started in november 2012, which

was con tinued in the year under review. Since the campaign

began, the average monthly applications received rose year-

onyear by an average of 30 %. Inclusion of our employees in

the new employer branding program was honored with the

special prize “employer branding innovation of the year” at the

trendence awards in 2013. Furthermore, in 2013 the employer

branding campaign was awarded the Queb award “excel-

lence employer Branding campaign.” the Queb association

honors excellent activities concerned with the theme employer

branding, personnel marketing and recruiting with this prize

each year. the central element of our employer branding is

our careers Web site. Social media channels such as Facebook,

twitter and Youtube round out our online presence.

We have restructured our applicant selection for high

school graduates in the year under review. We rely on a com-

pe tence-based selection process since the introduction of

the online test in July 2013. For schoolchildren who want to

begin pro fes sional training or a work-study program in the fall

of 2014 or afterwards, the preliminary screening by school

grades has been eliminated. the goal is to orient permanently

the selec tion of applications even more strongly toward com -

pe tencies and potential.

We want to retain potential young staff members at an

early stage with our almost 370 cooperative programs with

schools and 20 national and four international cooperation

programs with schools of higher education and recruiting

events such as DB Summer School. Students at higher educa-

tion institutions can already build their first work experiences

and make important career connections in DB Group during

their studies through an internship, as a student trainee or

in the context of a thesis. For graduates of higher education

institutions, DB Group offers the possibility of a trainee pro-

gram or direct entry as a regular employee. our candidate

pools help us to remain in dialog with interesting candidates

over the long term.

Career developmentWe retain qualified and engaged employees through strate-

gically oriented and attractive career development. In this

we rely above all on internal development of specialists and

executives within DB Group. the systematic promotion of high

performers and high potentials is an important instrument

to ensure the supply of future leaders and to retain em ploy-

ees also over the long term. the basis for this is continuous

dialog between employees and executives.

through written paths of development, career develop-

ment possibilities are documented, which also supports

succession planning across all business units. A Web tool

makes the paths of development accessible to all employees

and executives. A career development compass gives online

information about possibilities for in-service training. In

2013, a DB Group-wide DB MA program was announced for

the first time. employees could apply on their own initiative

for one of 30 places in seven different specialist fields.

Vocational training, ongoing training and further training

of employees in Germany is conducted through DB training

as the partner for DB Group education, development and

change processes. For specialist and project management

careers, 2,000 qualification programs are available. Beyond

these, each year about 2,000 programs are developed and

carried out for individual customers. We train about 250,000

participants each year at about 22,000 events.

the importance of electronically supported learning

(e-learning) is increasing in connection with the individual-

ization of education needs and the requirements of training

near the workplace. About 60,000 users of the learning man-

agement system (lMS) of DB training are receiving further

training on themes such as compliance, privacy and vehicle

technology.

DB Academy is responsible for the qualifications of the

about 7,000 executives and future executives of DB Group.

this helps us ensure systematic and continual career support

from one source. In the year under review, about 43 % of our

executives benefited from one of our talent, transition and

excellence programs based on individual development phases.

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Costs of training and continuing education for employees 1) 2013 2012

Change

absolute %

Costs of training and continuing education (€ million) 146 141 + 5 + 3.5

per employee (FTE) (€ ) 739 719 +20 +2.8

1) Germany, includes trainees and dual degree students.

the business unit DB Schenker logistics employs the most

employees outside of Germany. In order to tailor the personnel

development environment to the changed international

requirements, in the year under review in the regions europe

central and europe north, for example, decentralized training

hubs were established as pilot programs, and in Singapore

the training center was expanded.

At DB Schenker Rail, to develop further the european

structure, the development program “people exchange

program” (pep) was conceptualized. In order to promote

especially european integration between the country-based

companies, this program allows a time-limited international

project and visitation experience above all for specialists

and future executives.

securinG younG talent

Young professionals 1) as of Dec 31 [ natural persons ] 2013 2012

Change

absolute %

Trainees 10,361 10,019 + 342 + 3.4

Dual degree students 1,083 987 + 96 + 9.7

Trainees 2) 181 187 – 6 – 3.2

Interns 2) 615 507 + 108 +21.3

“Chance plus” participants 310 315 – 5 – 1.6

1) Germany.2) Germany (companies with about 97 % of domestic employees).

Includes all class years of vocational training (usually three class years of trainees and dual degree students).

With about 12,000 trainees, dual degree students and “chance

plus” participants, DB Group is one of the largest vocational

trainers † in Germany. About 500 trainees are employed

outside of Germany. Vocational training and dual degree

programs are the foundation of our efforts to secure the

recruitment of skilled employees.

About 3,400 young people started vocational training with

us during the year under review, and another 350 began a

dual degree program within DB Group. the share of young

people who received an offer of employment at the conclu-

sion of their vocational training was about 95 %. We also

offered again over 300 places in ten locations throughout

Germany for qualified high school graduates who are condi-

tionally eligible for vocational training in the framework of

the vocational preparation program “chance plus.” this pro-

gram serves as preparation to begin employment. over 75 %

of participants of the class year 2012/2013 who had success-

fully completed the program were able subsequently to

either directly begin work or vocational training in DB Group

or in other companies. In September 2013, a pilot program

of our new vocational training format “part-time vocational

training” began. With this we wanted to make possible, for

example, a balance between vocational training and family

responsibilities for young parents.

Along with the teaching of specialized knowledge and

practical skills, central components of vocational training in

DB Group are the acquisition of service-based, social and meth -

o dological competencies such as entrepreneurial thinking,

focus on the customer, independence and team spirit.

Further improvements in vocational training and dual

degree study were agreed upon by DB Group and the eVG

as of September 1, 2013. the young professionals collective wage

agreement † now applies also for participants of vocational

train ing and vocational preparation programs such as “chance

plus” and regulates important employment conditions.

talent manaGement anD manaGement

DiaGnostics

targeted recruitment of both internal and external young

talents requires the systematic identification of and pro-

motion of suitable specialists and executives. the focus of

talent management is the quality of selection processes in

the executive area. the basic framework for targeted indi-

vidual development of talent is a development center for

selecting locations and personalized measures which expand

on this. Beyond this, formats are also offered in order to

identify talent in DB Group and assist thereby to expand the

breadth of experience of executives and to promote careers

across various stations (business units, roles, countries).

†

†

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leaDership concept

Since 2012, DB Group has been working on the development

of a common leadership concept in which transformative

elements are emphasized more strongly. Its values- and

reason-based orientation plays an important role in selection

processes and decisions about evaluation of executives. In

fall 2013 the dialog series “strategy and leadership” begun

with the top 250 executives continued to be carried out with

executives in upper management. Divisions and business

units have also begun in parallel to involve middle man-

agement and line executives in the dialog.

Corporate culturethe change in corporate culture † introduced in 2010 is a central

component of the DB2020 strategy. A strong corporate

culture, which is shaped by a good collaborative spirit and

high motivation, engagement and satisfaction of our

employees, forms the basis for corporate success over the

long term.

cultural chanGe

In the framework of the cultural development process, the

emphasis in the year under review was on the follow-up pro-

cess to the first DB Group-wide employee survey † in 2012 as

well as on continuing to provide a DB Group-wide impetus

and to support opinion leaders.

the employee survey with its biannual implementation

lends a regular rhythm to the cultural change and secures a

continuous organizational development process. In light of

DB Group strategic goals, the results of the employee survey

and the findings of regular dialog events, the process itself

will determine the next new themes of the cultural change.

the results of the employee survey will be used to derive

concrete change measures at all levels of DB Group. these

were the basis for binding national follow-up workshops or

other international follow-up activities. employees discussed

together with their managers and a moderator the findings

and determined measures for change. A total of 10,500

follow-up workshops and follow-up activities took place.

More than 126,000 employees took part in these. In follow-up

workshops, concrete steps were agreed upon and recorded

in an online tool with binding force. A total of almost 30,000

measures should be implemented together throughout

DB Group.

the Management Board will continue the dialog from the

conferences on the Future and Regional Dialogs on the Future

in 2014 with employees and executives in further events. As

part of the action areas of the employee survey, so-called

workshops on the future are planned, in which employees

and specialists from all business units come together to work

on solutions that are ready to implement.

As important opinion leaders, about 850 pace setters and

ambassadors support the cultural change across all business

units and beyond all hierarchies. For a targeted expansion of

and strengthening of their engagement, in the year under

review a support program began in the form of technical and

methods training. For 150 selected HR managers there is also

a qualification program. they should push important stra-

tegic themes more, such as transformational leadership and

cultural change.

Diversity

Workforce diversity as of Dec 31 [ % ] 2013 2012

Change

absolute %

Share of women 22.6 22.5 – –

in Germany 22.5 22.1 – –

Employees on parental leave 1) (natural persons) 1,319 1,409 – 90 – 6.4

Share of women 90.5 87.6 – –

Share of men 9.5 12.4 – –

Disabled (natural persons 2)) 12,632 12,314 + 318 +2.6

1) Germany, excluding DB Schenker Logistics; includes parental leave assured in works agreements that is greater than the parental leave according to the law.

2) Germany.

A value-conserving approach to diversity and the use of its

innovation potential are central components of our corpo-

rate culture. In DB Group management, the Diversity Manage-

ment † department created in 2012 advanced strategically

the promotion of and living of diversity. equal development

opportunities for women and men, and the promotion of

cooperative work between people of different age groups

and different cultures, were identified as core themes.

As a founding member, DB Group continued to support

the Diversity charter association and participated in the

Diversity conference 2013 they organized with a diversity

slam. With our engagement we take a stand for diversity and

tolerance in Germany and obligate ourselves at the same

time to continue to take steps also within DB Group for equal

!!!

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opportunity independent of age, gender, ethnicity, disability,

religious or sexual orientation. We also participated in the

first German Diversity Day 2013 with various actions.

For the sixth time in a row, DB Group has been recognized

for its activities for more equal opportunities for men and

women with the total e-Quality designation. the multifaceted

measure for work-life balance, various mentoring programs

and the concrete goal to increase the proportion of women to

25 % of the total and 20 % of executive positions by 2015 were

especially honored. As of December 31, 2013, the proportion

of women among all employees in Germany rose to 22.5 %.

the proportion of women in executive positions rose to 16.9 %

(as of December 31, 2012: 16.4%).

We have developed further measures to increase the

proportion of women in DB Group. When filling executive

positions, for example, at least one qualified woman must

be among the candidates. the mentoring program “careers

with children” also supports women in leadership positions

and young female leaders on their career paths. the program

supported by the european Social Fund and carried out to-

gether with the european Academy for Women in politics and

Business (eAF) has already demonstrated its first successes.

new uniform rules on interim management were develop-

ment to ease the bridging of time off for executives and to

ensure re-entry. During this time off (for example, parental

leave) a young executive or a young potential will take over

the position and can develop leadership experience, with

active support from the company while doing so.

Support of diverse employee networks in DB Group is

another way to promote interest groups. We have thus, for

example, established a cross-company father’s network in


Employment conditionsIn order to find suitable specialists on the labor market and

to retain employees, the employment conditions in DB Group

are always adjusted and improved.

compensation that is fair and commensurate with perfor-

mance as well as various social and ancillary benefits should

guarantee the employer attractiveness of DB Group †. For this,

we have worked closely with our five largest social part ners

(the Railway Staff Social Services Foundation (BSW), the

health insurer BAHn-BKK, the association of railway staff

sports clubs (VDeS), the insurer DeVK and Sparda Banks)

for years.

waGe policies

employment conditions must remain both attractive and at

the same time affordable for the company, even in light of

changing overall conditions.

the proportion of workers with wage agreements in

DB Group fell in the year under review because of an increased

proportion of employees paid above the wage agreement

level.

Employees 1) with collective agreements as of Dec 31 [ natural persons ] 2013 2012

Change

absolute %

Employees with collective wage agreements 180,274 177,554 +2,720 + 1.5

Proportion (%) 94.8 95.2 – –


In March 2013 the employer and Business Association of

Mobility and transport Services (Agv MoVe) and the eVG

agreed to the following wage agreement:

A Increase of wages in functional group specific wage

agreements and in DB Systel GmbH by 3 % each on May 1,

2013 and April 1, 2014 (term until July 31, 2014, 19 months).

A Increase of wages in DB Services GmbH, DB Sicherheit

GmbH and DB Kommunikationstechnik GmbH by 3 %

each on May 1, 2013 and April 1, 2014 (term until novem-

ber 30, 2014, 23 months).

A For the months January to April 2013, a one-time payment

as a social component in the amount of € 500 for vocational

trainees and € 225 for dual degree students was made.

A Increase in wages for the collective branch agreement by

3 % each on February 1, 2013 and April 1, 2014 (term until

December 31, 2014, 23 months).

Based on the agreement with the GDl from the summer of

2012, on november 1, 2013 there was a further wage increase

of 2.4%. the next wage negotiations with the GDl will start

in July 2014.

An increase in the monthly contribution to the company

pension fund was agreed to with both the eVG and the

GDl. According to this, DB Group will pay 2 % of gross

wages each month for each employee directly into the com-

pany pension fund from november 1, 2013 (GDl) and from

July 1, 2014 (eVG).

!!!

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Demographics collective bargaining agreement took effect

In December 2012, eVG, Agv MoVe and DB Group agreed on

a demographics collective bargaining agreement † to address

demographic change. the common aim is to make it possible

for DB Group employees to have perspectives and develop-

ment chances throughout their entire careers. the agreement

took effect on April 1, 2013 and connected to the action areas

of the employee survey 2012, especially the desire for more

linkage and participation. It offers instruments to work on

solutions on the ground with mutual responsibility of man -

age ment and labor representatives and with participation of

employees. For example, a permanent job guarantee and a

permanent job offer for all trainees who complete their courses

successfully were agreed upon.

Increased flexibility for work time † was taken into account

within the demographics collective bargaining agreement.

the aim is to design work time and working conditions more

individually, in order to achieve a better balance of work, fam-

ily and life stage. one instrument is the operational working

hours pro ject that had already been proven to work well in

DB Group. the employee is actively involved and colla bor-

ative partnership between representatives of management

and labor is supported. With the introduction of the demo-

graphics collective bargaining agreement, employees may

use a longterm account for a sabbatical. the previously estab-

lished pos sibilities to take a leave of absence remain in place.

to design measures to reduce the burden of older emp-

loyees with especially strenuous tasks, an initial model, spe-

cial part-time work for older employees (“besondere teilzeit

in Arbeit”), was agreed upon, for example. employees aged

60 years and older may reduce their work time by fulfilling

certain preconditions by paying a partial wage compensation.

A future collective wage agreement † was under negotiation

with the GDl in 2013. However, no agreement has been

reached yet.

employment conDitions for executive

employees anD employees not suBject to

collective waGe aGreements

employment conditions for executives and employees not

subject to wage agreements are also being continuously

improved. compensation policy and ancillary benefits will

be oriented towards DB Group’s strategic targets.

the target system of the DB2020 strategy was integrated

into the variable portion of compensation for the year 2013.

this not only considered customer and employee satisfac-

tion, but also took environmental results into equal consid-

eration for variable compensation. About 3,000 executive

employees and 2,000 employees not subject to collective

wage agreements in DB Group receive variable end-of-year

bonus ( JAV).

Mobility services for managerial-level employees were

revised and expanded. the Bahncard 100 First, Flinkster

car sharing and the bicycle rental service call a Bike are

environmentally conscious DB Group alternatives to a com-

pany car. the company car service was oriented to environ-

mental criteria and incentives were created for the use of

alternative engine technology.

to improve work-life balance, since 2012 executive em-

ployees and DB Group employees not subject to collective

wage agreements have been able to negotiate a sabbatical

of up to six months. DB Group also supports the provision

of part-time executive employment.

work-life Balance

the balance between work, family and life stage is coming

into the foreground in the work world today. It has an even

higher priority in connection with the conclusion of the demo-

graphics collective bargaining agreement.

In September 2013, DB Group and the Group Works council

signed a Framework Group Works Council Agreement for balance

between work, family and life stage †. It is valid for a large por-

tion of DB companies in Germany and offers assistance to

employ ees with questions about this topic.

With the expansion of childcare services, we want to

carry out our commitment for a better work-life balance. In

September 2013, the first DB-operated day care center for

children, “Bahnbini,” opened in Frankfurt am Main with

care places for 90 children. there are about 150 care places

reserved for DB employee’s children in private day care centers

available throughout Germany. parents are supported by

regional childcare coordinators of the BSW Foundation in

their search for day care centers with available space as well

as emergency and weekend childcare services. During the

summer school vacation, employees in Berlin, Frankfurt am

!!!

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Main and Munich can have their children cared for by the

DB Group-operated program “DB RasselBAHnde.” In addi-

tion, our cooperation partner elternservice AWo finds, for

example, au pair and day care personnel and supports the

organization of advice and support for care of dependents.

Greater flexibility in work time is of great importance for

work-life balance. For this, DB Group offers its employees

various part-time models.

Employees 1) by work time as of Dec 31 [ natural persons ] 2013 2012

Change

absolute %

Full-time 175,125 172,550 2,575 1.5

Share of women (%) 18.4 18.0 – –

Part-time 15,111 14,022 1,089 7.8

Share of women (%) 68.6 70.1 – –


health manaGement

A diverse set of offerings for health promotion and a modern

occupational health management program † have positive effects

on employee satisfaction, employer attractiveness and the

demographic preparedness. For this we want to expand the

comprehensive programs that we have already established,

such as nutrition programs in company cafeterias, courses

to stop smoking or how to handle addictive substances, in

accordance with demand. Along with diverse sports pro-

grams we also have a strong awareness of mental health in

the workplace. there has been a support concept for over

ten years for train drivers who must process the experience

of an accident. through the employee support teams (Mut),

all DB Group employees and their family members also have

a contact person for individual emergency situations.

Since we want to retain our employees for as long as pos-

sible in DB Group, we have been exploring a health-oriented

prevention program for older employees together with

Heidelberg university since 2012. the pilot project “Smart

and Active Aging” (clever und Aktiv in Richtung Alter, clARA)

links the central themes of health promotion. In December

2013, clARA was awarded the HR excellence Award as an

innovative project addressing demographic change.

Optimization and internationalization of HR workBy building an international personnel manager network in

the previous year, we have created the basis for a trusting

cooperation in the human resources area of DB Group. In the

year under review, two HR manager meetings took place in

london and Amsterdam. At these events, the framework was

created for working together to implement the HR2020

program [ page 128 ] in the international context. In interna-

tional project groups across business units, important themes

were processed that will implement DB Group’s human

resource strategy worldwide. cooperative work in selected

HR2020 programs – Spp, career development and further

development of corporate culture – was intensified in the

year under review.

the first international model for SPP [ page 128 ] was devel-

oped. In processing the themes for career development,

coop eration was expanded above all in the area of the com-

petence system, 360-degree leadership feedback and devel-

opment of international career paths. We are relying on dialog

for the further development of our corporate culture in an

international context as well. In February 2013, the first inter-

national Regional Dialog on the Future took place in Wrocław

with polish employees, followed by another Dialog on the

Future in Amsterdam in november 2013 with employees from

Belgium and the netherlands. the Dialogs on the Future were

organized across business units in each country.

A european Works council (eBR) of DB Group has existed

since 2005 for representation of the interests of employees

beyond national borders. DB Group companies in 20 european

countries send employee representatives to the eBR.

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135 Environmental135 Environmental management135 Reduction of emissions140 Noise reduction141 Material and resource efficiency142 Reduced water consumption142 Conservation measures implemented

135Group manaGement report SoCial

ENviRoNMENtal

EnvironmEntal managEmEnt

Within the scope of the strategic management process (SMP)

of DB Group, content, strategies and the top targets [page 85 ]

with regard to the environmental ¥ dimension are developed

and approved together with the corporate and business unit busi -

ness development and specialist environmental departments

of Group management and the business units. the specialist

environmental departments also implement environmental

management in the business units, while DB Environment

Center is responsible for environmental management at the

Group level. it also provides assistance to the Group and the

indi vidual business units in developing, implementing, moni-

toring and improving environmental strategies, targets and

measures.

the Group Environment Committee, consisting of repre-

sentatives from DB Environment Center and all of the business

units of DB Group, ensures smooth cooperation and con -

tinual improvement in environmental issues across DB Group.

the Committee’s working groups and expert groups jointly

develop and approve the content and strategies of DB Group’s

environmental protection program.

DB Group’s environmental management system is iSo

14001 compliant, and applies to all business units world-

wide. the DB Bahn Regional and DB Bahn long-Distance

business units have already been certified, and about 70 %

of DB Schenker logistics sites worldwide were already certi-

fied in the year under review as well. Further certifications

will follow.

Stakeholder dialoguetwo-way dialogue and critical exchanges with our stakeholders

are of importance to us, with workshops involving the indi-

vidual stakeholder groups, among other things, providing a

forum for such regular dialogue. in the year under review, we

held the 17th annual “Passenger, Environment & transport”

workshop with some 50 representatives of passengers, dis-

abled persons and environmental associations from about

30 institutions.

We keep our employees informed, for example by way of

qualification and informational events, as well as numerous

environmental courses. in the year under review, DB Environ-

ment Center and DB training together trained about 700

employees in the context of 60 environmental courses. the

electronic “Eco training 2013” course was set up in order to

provide the employees of DB Schenker with comprehensive

information and assistance for their dealings with customers;

in four modules, it acquaints them with the relevance of

environmental and climate protection as well as the objectives

of DB Group.

rEduction of Emissions

We have set ourselves the goal of reducing our worldwide

specific Co₂ emissions by 20 % between 2006 and 2020, with

a further key aspect of our efforts being the reduction of

pollution from our vehicles.

Further reduction of energy consumption and CO₂ emissions in rail transport

Selected key figures rail transport of DB Group in Germany 2013 2012

Change

absolute %

Specific primary energy consumption rail passenger transport (MJ /pkm) 0.79 0.92 – 0.13 – 14.1

Specific primary energy consumption long-distance rail passenger transport (MJ /pkm) 0.48 0.68 – 0.20 –29.4

Specific primary energy consumption regional rail passenger transport (MJ /pkm) 1.06 1.12 – 0.06 – 5.4

Specific primary energy consumption rail freight transport (MJ /tkm) 0.37 0.37 0.0 0.0

The data for 2013 is based on the information and estimates available as of February 13, 2014.

¥

EnvironmentalA A

Positive interim results for our climate protection program

Increased use of renewable energy

Millions of customers traveling in long-distance transport with 100 % eco-power

K

136 Deutsche Bahn Group 2013 aNNual REPoRt


Change

absolute %

Specific carbon dioxide consumption rail passenger transport (g /pkm) 43.3 53.2 – 9.9 – 18.6

Specific carbon dioxide consumption long-distance rail passenger transport (g /pkm) 19.8 39.7 – 19.9 – 50.1

Specific carbon dioxide consumption regional rail passenger transport (g /pkm) 63.1 64.7 – 1.6 –2.5

Specific carbon dioxide consumption rail freight transport (g /tkm) 21.9 21.9 0.0 0.0

The data for 2013 is based on the information and estimates available as of February 13, 2014.

Since 1990 and thus since the beginning of our first climate

protection program, we have been able to reduce the specific

Co₂ emissions produced by DB rail transport in Germany by

a total of 54%. in absolute terms, Co₂ emissions in this area

have decreased by about 0.9 million t as com pared to the

previous year. the data relating to DB Schenker logistics and

DB arriva will not be available until the second half of 2014.

siGnificant increase in proportion of

renewaBle enerGies in traction current

procurement volume

¥

Traction current mix in Germany [ % ] [ 2013 2012 ]

26.1 9.1 1 ) Renewable 35.2energy 24.0

Nuclear 16.3energy 20.2

Black coal 29.9 31.4

Brown coal 10.9 14.2

Natural gas 6.5 8.3

Other 1.2 1.9

1) Not including volume of energy additionally procured for green products (excluding Environment Plus and Eco Plus).

The data for 2013 is based on the information and estimates available as of February 21, 2014 and is provisional.

in the year under review, we further increased the propor-

tion of renewable energy ¥ in the traction current mix. this

proportion of the total volume of power procured for the

electric rail transport services provided by DB Netze Energy

in Germany, the so-called purchasing mix, increased by

about 11 percentage points to 35.2 % and is therefore much

higher than in the overall energy mix in Germany. this large

increase can be attributed to additional purchases of eco-

power for green long-distance transport products [ page 147 ] and

new contracts for wind energy and hydropower [ page 177 ], sub-

stituting nuclear power and fossil fuels. We therefore al ready

achieved our goal of increasing the proportion of renew able

energy to at least 35 % by 2020 in the year under review.

additional renewable energy is procured for our green

product offerings [ page 147 ff. ] at the business unit level, and

is directly reflected in the carbon footprint of the business

units in question.

a major driver of the development at DB Bahn long-

Distance has been the introduction of new green products ¥

in april 2013, which will bring the proportion of renewable

energy in the total volume of power procured by DB Bahn

long-Distance in 2014 to about 75 %.

the proportion of renewable energy in the total volume of

power procured by DB Schenker Rail Germany and DB Bahn

Regional also increased in the year under review.

the Hamburg S-Bahn (metro) and the regional transport

services in the Federal state of Saarland also contribute to

reducing the carbon footprint of DB Bahn Regional, as these

also run on 100 % eco-power and are thus Co₂-free.

in addition, DB Netze Energy also procures power for its

Co₂-free rail freight (Eco Plus) and long-distance (Environ-

ment Plus) transport services separately, and this volume –

amounting to about 69 GWh in the year under re view – serves

to further “greenify” the traction current mix. However, the

volume of eco-power procured on behalf of our customers

does not form part of DB Group’s goal of continuing to

increase the proportion of renewable energy in the traction

current mix and is therefore reported on a separate basis.

¥

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137Group manaGement report ENviRoNMENtal

increaseD Brake enerGy recovery

Brake energy recovery 1) [ GWh ] 2013 2012

Change

absolute %

Regional rail passenger transport 620 566 + 54 + 9.5

Share of total electricity procurement (%) 14 13 – –

Long-distance rail passenger transport 279 288 – 9 – 3.1


Rail freight transport 140 143 – 3 –2.1


Total 1,040 997 + 43 + 4.3

1) Germany, tank-to-wheel (TTW ).

all modern railway vehicles are able to convert kinetic energy

into electrical energy upon braking and to feed it back into

the traction current grid. in the year under review, the pro-

portion of so-called brake energy recovery has increased, in

particular as a result of the use of new vehicles in regional

rail passenger transport, enabling 1,040 GWh of electricity to

be “recycled” and thus savings of about 11 % to be made in

the procurement context.

photovoltaic plants on DB sites expanDeD

Installed capacity of photovoltaic plants on DB sites [ MWp ] 2013 2012 1)

Change

absolute %

| Capacity in total, cumulated 14.4 6.8 + 7.6 + 112

1) Figures adjusted.

We have used suitable surfaces and roofs for the installation

of photovoltaic systems since 1997. in 2013 we launched the

largest and most powerful photovoltaic system on a

DB surface to date together with the project developer

Greenvest Solar from Starnberg/Güsten near Magdeburg.

this solar power plant, installed on the roof of a former

marshaling yard, extends over a surface of about 10.4 ha and

generates power in the amount of some 6.4 MWp. the elec-

tricity produced here is fed into the public grid and is enough

to meet the energy requirements of about 1,500 four-person

households.

improveD enerGy efficiency at stations

We also aim to improve the energy efficiency of our stations.

We will be opening Germany’s first carbon-neutral station ¥ in

Kerpen-Horrem in mid-2014. our station facilities as a whole

are becoming increasingly energy-efficient. in 2013, we were

able to reduce primary energy consumption at stations by 34

GWh as a result of numerous implemented measures, such as:

A optimization of thermal building physics in concourse

buildings,

A use of energy-efficient systems technology such as lED

lighting and regenerative conveyance technology,

A combined heat and power plants in order to improve the

degree of efficiency of primary energy use,

A integration of building automation systems.

our long-term energy conservation goal with respect to our

stations is to reduce primary energy consumption by a total

of 14% between 2010 and 2020.

investment in environmentally

frienDly loGistics centers

a new logistics center with a total area of 90,800 m² has been

established in Rudná in the Czech Republic. this modern

building project comprises an in-house photovoltaic service

station and a solar-powered system for heating water on the

premises. therewith, both the office buildings and the ware-

house facilities should largely be able to generate enough

power to meet their own energy requirements. the envi-

ronmentally sustainable facilities also include intelligent

lighting systems, an ultra-modern heating, ventilation and

air-conditioning system, and a liquid petroleum gas filling

station for vehicles which run on compressed natural gas.

Reduction of emissions through the use of modern vehicles and technology


Change

absolute %

Absolute volume of direct emis-sions of soot particles by diesel vehicles in rail transport (t) 179 190 – 11 – 5.8

Absolute volume of nitrogen oxide emissions by diesel vehicles in rail transport (t) 9,925 10,608 – 683 – 6.4

We are constantly working towards reducing the emissions

produced by our existing vehicle fleet. overall, we were able

to reduce emissions of soot particles and also nitrogen oxide

emissions from diesel vehicles in the year under review while

increasing the proportion of electric vehicles used in rail

trans port in Germany by a further 0.5 %.

¥

¥

¥

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hiGh emissions stanDarDs in existinG fleet

Breakdown of truck fleet of DB Group according to Euro standard [ % ] 1) 2013 2012

Euro I 0 1

Euro II 0 5

Euro III 9 20

Euro IV 10 30

Euro V 79 44

Euro VI 2 0

1) DB Group worldwide, long-distance road freight transport routes.

Breakdown of car fleet of DB Group according to Euro standard [ % ] 1) 2013 2012

Euro 1 0.0 0.0

Euro 2 0.0 0.0

Euro 3 0.4 0.5

Euro 4 1.2 7.1

Euro 5 96.8 92.0

Euro 6 1.6 0.4

1) Germany.

DB Schenker logistics continually renews its vehicle fleet on

both environmental and economic grounds. More than 80 %

of the trucks used for long-distance transport comply with the

strictest emissions standards, Euro v and vi. in addition, strin-

gent monitoring measures also ensure that fleets used by

subcontractors are up-to-date, with all national subsidiaries

being required to subject the truck fleets of their about 6,000

subcontractors to an annual evaluation in accordance with a

standardized procedure. among other things, the evaluation

relates to the current condition of the fleet structure,

focusing on its Euro standard classification and on the

training provided to drivers.

We are also reducing the emission of pollutants by our

fleet of cars through increasing use of vehicles which comply

with the Euro 5 standard.

measures implementeD in 2013

A We have come to an understanding with Bombardier as

to the conclusion of a framework agreement for the supply

of electric locomotives [ page 180 ] which generate lower

costs over their useful lives and are very energy-efficient.

they will enable us to achieve energy savings through

their use of more efficient current transformers, driver

assistance systems for optimal energy-efficient operation

and brake energy recovery systems.

A DB Bahn Regional Bus has acquired 350 buses from

EvoBus and iveco irisbus, all of which have engines that

comply with the most stringent emissions standard appli-

cable at the present time, that of an “enhanced environ-

mentally friendly vehicle” (EEv), and thus go beyond the

requirements of the Euro v standard imposed by statute

up until 2013. vehicles which comply with the Euro vi

standard are to be supplied for orders made from 2014

onwards.

A DB arriva already has more than 140 hybrid buses in

operation in london, with 77 hybrid buses and 21 gas-

powered buses joining the fleet servicing the area around

london in the year under review. DB arriva is also increas-

ingly focusing on the use of environmentally friendly

hybrid technology to reduce emissions of Co₂ and pollut-

ants in other European countries: more than 50 hybrid

buses are in operation in the Netherlands, with more in

use in Southern Europe.

A DB arriva has acquired a majority shareholding in Zeta

Automotive [ page 72 ], an innovative supplier of environ-

mental technology solutions in the area of vehicle inspec-

tion and engine control systems. one of its main prod-

ucts, Econospeed, is a system which enables appreciable

fuel savings to be made in the road transport context,

and will be gradually introduced by DB arriva from 2014

onwards. its use in other business units in the future is

also a possibility.

A as of the end of the year under review, 125 of the 130

Gravita shunting locomotives equipped with soot particle

filters that had been ordered had been delivered to DB

Schen ker Rail Germany. according to the manufacturer’s

claims, the special filters capture 97% of soot particle

emissions. DB Schenker Rail is therefore the first German

company to deploy diesel locomotives with particle filters

in large numbers.

A at the end of March 2013, DB Schenker logistics put the

first truck to run on so-called frozen biogas ¥ into operation

in Sweden. this refers to a type of gas containing methane

that is used as an alternative fuel. the source is key: it is

touted as a second-generation biofuel since it comes from

organic waste and therefore poses no competition to the

cultivation of food. according to the results of a complete

analysis of the fuel cycle (well-to-wheel; WtW), it brings

about a reduction in greenhouse gases as compared to

conventional diesel fuel of more than 80%.

¥

¥

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manDatory purification of exhaust Gases

for construction site vehicles

the first phase of our new tender procedure for the purifica-

tion of exhaust gases on construction sites came into effect

on July 1, 2013. it initially applies to inner urban areas and

goes beyond the statutory requirements, stipulating con-

tractual obligations regarding the use of low-emissions vehicles

and construction machinery ¥. our fundamental requirements

are green stickers for road vehicles and a particulate reduc-

tion system for all other diesel-operated construction

machines that removes at least 90 % of particulate matter.

the three-stage regulatory model will increase the require-

ments as to emissions standards in July 2015 and again in July

2018, while already limiting the exceptions which are still

permissible at the present time.

further eco rail innovations

Further participants joined our “Eco Rail innovation” (ERi) in-

dustry initiative in the year under review, bringing the total to

19 partners cooperating with each other in the development

of technological innovations with a view to strengthening the

competitive position of rail-based modes of transport in the

intermodal context. We launched the hybrid H3 shunting loco-

motive ¥ project in august 2013 as part of the ERi, together

with our partners alstom Germany, the Free State of Bavaria

and Dal Deutsche anlagen-leasing. Five model H3 shunting

locomotives equipped with hybrid technology are to be built

and then subjected to operational viability testing at DB Bahn

Regional locations in Würzburg and Nuremberg over an eight-

year period beginning in 2015, with a view to establishing

their viability for production in technical and economic terms.

as compared to conventional shunting locomotives, an H3

locomotive produces up to 70 % less pollution and also

requires up to 50% less fuel, and as such makes low-emissions

local rail transport – for example, in inner city areas – possible.

Extension of environmentally friendly mobility chains We consider there to be excellent opportunities for the

deployment of electric vehicles ¥ by way of supplement to our

rail transport services, particularly in the urban transport

context, and to this end we are developing mobility concepts

and products for our customers which we intend to build on

further.

Mobility offers of DB Group in Germany 2013 2012

Change

absolute %

Vehicles

Flinkster cars 1) 3,100 3,047 + 53 + 1.1

thereof e-Flinkster and Multicity 2) 580 165 + 415 –

Call a Bike bicycles 9,071 8,919 + 152 + 1.7

thereof pedelecs 132 131 + 1 + 0.8

customer s

Flinkster 253,000 211,643 + 41,357 + 19.5

Call a Bike 615,000 536,535 + 78,465 + 14.6

1) Total number of vehicles in Germany, Austria, the Netherlands and Switzerland which may be reserved by end customers: 5,100 in 2013 and 5,047 in 2012.

2) Excluding electric cars of other cooperation partners.

new car-sharinG concepts launcheD

the launch in March 2013 of “e-Mobil Saar” represented a

further milestone in the use of electric cars by Flinkster,

DB Group’s car-sharing program. the research project on

electromobility sponsored by the Federal Ministry of trans-

port and Digital infrastructure (BMvi) aims to more closely

link public local passenger transport and individual trans-

port systems. Public mobility options are becoming more

numerous and also increasingly environmentally friendly as

a result of the use of electric vehicles in the car-sharing rental

system.

the “use of electromobiles in thuringia outside of cities”

(Elektromobiles thüringen in der Fläche; EMotiF) research

project conducts electromobility trials, particularly in rural

and tourist regions. in cooperation with regional tourism

organizations, the electric vehicle car-sharing option repre-

sents an attempt to guarantee the mobility of train travelers

in their effort to connect to tourist destinations in the region

of Erfurt /Weimar/Jena/Eisenach. the “E-Wald” project, a

collaboration involving DB RegioNetz, six administrative

districts and 90 municipalities, has been launched with

150 vehicles over an area of 7,000 km² in the Bavarian Forest

and provides customers arriving at train stations with the

option of continuing their journey in an electric car. a similar

project was launched in July 2013 at the Garmisch-Parten-

kirchen Station where electric vehicles are made available

as part of the e-Flinkster car-sharing ¥ program. the goal is

to also provide customers with attractive and environmen-

tally friendly services outside of the major metropolitan

areas. Should these projects prove successful, they may be

extended to other regions.

¥

K


Furthermore, Peugeot Germany and DB Netze Energy renewed

their collaboration in april 2013 and extended the scope to

in clude Peugeot’s subsidiary Citroën. DB Netze Energy is

assisting the automobile manufacturer in the marketing of

its electric vehicles in Germany, providing energy-related

services in areas ranging from recharging infrastructure to

power supply.

the Citroën Multicity car-sharing concept in Berlin,

which was launched in august 2012, is attracting ever more

customers. about 3,700 customers registered for the first

cross-station, entirely electric one-way car-sharing service

in Germany and completed about 47,700 journeys with the

Citroën C-Zero within the first year. a fleet of 450 Citroën

C-Zero vehicles was in operation in the year under review,

and there are plans to increase the number of cars to 500

in 2014. Holders of the Multicity loyalty card are also able

to use the services of both Flinkster and Call a Bike.

further Growth recorDeD By call a Bike

about 615,000 customers – including the customers of

StadtRaD Hamburg and Konrad Kassel – completed a total

of about 3.3 million journeys with “Bahn bikes” in 2013. Call

a Bike customers had about 9,000 bikes at their disposal in

Germany throughout the entire cycling season. in august

2013, our new StadtRaD bicycle rental sys tem was launched

with 50 bikes at five locations in lüneburg.

noisE rEduction

our goal with respect to noise reduction ¥ is also an ambitious

one: we want to reduce rail transport noise in Germany by

half between 2000 and 2020.

Noise remediation and prevention in Germany 2013 2012

Change

absolute %

Noise remediatioN

Sound barriers erected per year (km) 62 55 + 7 + 12.7

Homes with passive measures in place (number per year) 1) 2,500 2,000 + 500 +25.0

Track kilometers noise remediated in total (km) 1), 2) 1,300 1,200 + 100 + 8.3

Noise preVeNtioN

Sound barriers erected per year (km) 36 28 + 8 +28.6

Homes with passive measures in place (number per year) 1) 2,800 8,200 – 5,400 – 65.9

1) Rounded figures.2) Completed line sections in accordance with appendix 1 of the overall concept noise

remediation program, cumulated, rounding differences possible.

Progress made with noise remediation program the “noise remediation of existing rail lines of the Federal

Republic of Germany (lärmsanierung an bestehenden

Schienenwegen des Bundes)” program launched by the

Federal Government in 1999 is a central element in our efforts

to reduce rail transport noise. We proceeded with the imple-

mentation of the noise remediation program ¥ in 2013. the erec-

tion of a further 62 km of sound barriers in the year under

review has increased the total distance covered by noise pro-

tection measures to over 500 km. all in all, we equipped

more than 2,500 homes with noise-reducing windows and

soundproof ventilators in the year under review.

Noise prevention measures are implemented in the

construction and expansion of new and existing lines in

accordance with the provisions of the 16th Federal Emission

Control Regulation. these vary depending on the extent of

the construction work to be carried out in a given year and

are thus subject to fluctuation.

Noise reduction in rail freight transport

Freight cars equipped with V brake shoes in Germany 1) 2013 2012

Change

absolute %

New freight cars 7,750 7,470 +280 + 3.7

Refitted freight cars 650 150 + 500 –

Total 8,400 7,620 + 780 + 10.2

1) Rounded figures.

the use of quieter brakes, so-called composite brake shoes

(v brake shoes), which minimize abrasion on the wheel

surface, enables the noise produced in the freight transport

context to be effectively reduced. two types of v brake shoes

are available, and we have exclusively purchased freight cars

equipped with the K type of brake shoe since 2001. the num -

ber of new freight cars with this noise-reducing technology

increased by about 280 to about 7,750 in the year under

review. Following its accreditation in June 2013, we are now

able to refit our existing freight cars with the ll type of

brake shoe. Within the scope of the “leiser Rhein” (“Quiet

Rhine”) project we were thus able to increase the number of

freight cars which have been refitted with K and ll brake

shoes to 650, bringing the proportion of DB Group-owned

freight trains which are equipped with the new brake shoe

to over 10 %. We aim to refit all of our relevant existing freight

trains by 2020.

¥

¥

K


introDuction of noise-BaseD

train-path pricinG system

this project for the refitting of our freight cars is also rein-

forced by the newly introduced noise-based train-path pricing

system ¥, which imposes a noise-based remuneration component

[ page 170 ] for loud freight trains.

Implementation of special program for noise controlas part of the Infrastructure Improvement Acceleration Program

(IBP II) [ page 170 ], the Federal Government has provided a total

of € 40 million for the implementation of a special program for

noise control ¥ in 2013 and 2014. the funds are intended to

finance, among other supplementary measures to our noise

remediation program, the development of innovative noise

control technology along tracks, such as trial installations of

rail web dampers, noise-reduced rails or low-noise switches.

New developments which have been successfully tested may

also be implemented, where viable on an individual case basis,

in the noise prevention context once the “Schall 03” calculation

regulation to be revised by the Federal Government comes

into force.

about half of the € 40 million or so in funding for addi-

tional rail noise control measures provided by the BMvi pur-

suant to the iBP ii is earmarked for the Middle Rhine valley.

the first set of measures has already been implemented or

is currently under construction. Rail web barriers have been

built along more than 25 km of track in the Middle Rhine

valley, and more than 140 so-called insulated rail joints have

been extended in order to minimize selective noise pollution.

Furthermore, in November we deployed special machinery to

sand down 64 km of railway lines in the Middle Rhine valley

with a view to producing smooth tracks and thereby reducing

the noise produced by up to 3 dB. this measure in conjunction

with our rail web barriers means that we are able to reduce

rail transport noise by up to 6 dB at some sites.

matErial and rEsourcE EfficiEncy

Scarcity of resources and increasing prices also pose a consid-

erable challenge for DB Group. there is increasing pressure

to take action, above all with the use of materials for products

which are necessary for rail infrastructure. We are living up

to our responsibilities in this regard at every stage of our

value chain, from purchasing to operational use to recycling

and disposal. We intend to transform our waste management

process from an optimized disposal management system

into a modern resource management system.

Volume of waste in Germany according to type of disposal 1) 2013 2012 2)

Change

absolute %

Total waste (thousand t) 5,693 5,314 + 379 + 7.1

Share of recycling (%) 94 94 – –

Share of thermal recovery (%) 1 3 – –

Share of disposal (%) 5 3 – –

Share of constituting toxic waste of total volume 3) (%) 16.4 14.5 – –

1) Rounded figures.2) Adjusted figures (as of September 2013).3) Pursuant to the List of Wastes Ordinance, for example waste oil.

The data for 2013 consists of projections based on the information and estimates available as of January 24, 2014.

Volume of waste according to type in Germany [ thousand t ] 1) 2013 2012 2)

Change

absolute %

Total waste 5,693 5,314 + 379 + 7.1

thereof construction waste 5,067 4,633 + 434 + 9.4

thereof scrap metal 498 522 –24 – 4.6

thereof electronic scrap 1.3 3.2 – 1.9 – 59.4

thereof residential area waste 97 99 –2 –2.0

thereof paper 8.0 9.5 – 1.5 – 15.8

thereof waste oil 5.3 8.7 – 3.4 – 39.1

thereof other 3) 16.7 38.4 –21.7 – 56.5

1) Rounded figures.2) Adjusted figures (as of September 2013).3) For example paint, varnishes, sludge and other wastes produced

in the repair and maintenance context.

The data for 2013 consists of projections based on the information and estimates available as of January 24, 2014.

¥

¥

K


a major element of the optimization of the resource management

system ¥ of DB Group is the strengthening of its recycling

activities as a means of encouraging greater use of secondary

raw materials and conserving our natural resources. We are

also keen to increase our use of recycled materials and to

prolong the useful life of materials used in our vehicles.

Use of materials in DB Group infrastructure in Germany [ thousand t ] 1) 2013 2012

Change

absolute %

Total materials used 4,567 4,794 –227 – 4.7

Ballast 3,776 3,866 – 90 –2.3

Share of recycled ballast (%) 20 17 – –

Concrete ties 591 730 – 139 – 19.0

Share of recycled concrete ties (%) 13 9 – –

Wooden ties 2) 8.8 8.4 + 0.4 + 4.8

Rail steel 191 190 + 1 + 0.5

Share of recycled rail steel (%) 2 9 – –

1) Rounded figures.2) Recycled wooden ties are not available on the market as a result of

legal requirements relating to their disposal (thermal recovery).

The data for 2013 is based on the information and estimates available as of January 24, 2014. The previous years’ figures have been adjusted.

Recycling of ballast and concrete ties We have established a material flow for ballast, concrete ties

and tracks for the purposes of regular renewal and mainte-

nance. Every year, between 4 and 5 million t of old, worn down

material are removed from the network and almost the same

amount is reintegrated again.

about 1.6 million t of ballast is mechanically processed

on location using rail-mounted ballast cleaning machines

or mobile processing equipment and then directly reinte-

grated into the gravel bed. this not only significantly

reduces the amount of new ballast required but also the

related transport costs and Co₂ emissions. Most of the re-

maining material is then recycled at certified external waste

management facilities to produce ballast for use by DB Group,

or chippings or crushed sand for use in road construction.

about 3.8 million t of ballast was used in 2013, about

760,000 t of which consisted of recycled material.

Concrete ties likewise have a limited useful life and must

be replaced. two million concrete ties were installed in 2013,

about 230,000 of which were recycled. Concrete ties which

are no longer capable of being reprocessed in accordance

with the necessary quality criteria are recycled and put to

other profitable use outside of DB Group.

Redesigning as a means of prolonging useful life in order to extend the useful life of our vehicle fleet, we are

gradually modernizing our ICE and IC trains [ page 147 ] , for

example, which will considerably reduce our material and

energy consumption and enable us to save up to 80 % on the

material costs which would be incurred for the purchase of

new vehicles.

rEducEd watEr consumption

according to our estimates and on the basis of the data

available at the time of the preparation of this report, we

reduced our global water consumption, based on the volume

procured from public providers, by about 5 % on a year-on-

year comparison to 7.81 million m³ in the year under review.

We have installed water-saving toilet facilities on our

trains in the interests of resource conservation. in addition,

we have adopted water-saving cleaning practices which

reuse water several times.

consErvation mEasurEs implEmEntEd

the conservation of nature is of great importance to us. We

are confronted with nature conservation issues in both the

context of our day-to-day operations and the construction

and expansion of new and existing lines. Railway lines often

provide a unique habitat for protected species. We seek solu-

tions that make both ecological and economic sense wher-

ever conflicts arise. in order to be able to promptly identify

points of contact between the natural world and train-paths,

we use a geographical information system (GiS) which stores

details of rail lines and all digitally registered conservation

areas within Germany. We can only conduct our operations

in a manner which takes account of the sensitivity of these

areas armed with knowledge of any points of contact

between our train-paths, zones or overhead lines and con-

servation areas.

¥

K


¥

Points of contact between lines of DB Group and conservation areas in Germany [ km ]

Areas of outstanding 7,873 natural beauty

Nature reserves 6,602

Water protection areas 5,447

Flora-fauna habitat areas 2,343

Bird sanctuaries 1,837

Nature conservation areas 954

Biosphere reserves 623

National parks 32

Point of contact up to 25 m away from the centerline of the track. There may be overlaps between conservation areas.

¥

Points of contact between lines of DB Group and conservation areas in Germany [sq km ]

Areas of outstanding 224 natural beauty

Nature reserves 346

Water protection areas 290

Flora-fauna habitat areas 100

Bird sanctuaries 103

Nature conservation areas 42

Biosphere reserves 20

National parks 16

There may be overlaps between conservation areas.

Vegetation control as a means of ensuring safety of railway operationsin order to guarantee the safety of our passengers, we carry

out regular maintenance on our trains, tracks and track sys-

tems. this also entails the regular removal of plant life to

ensure that these do not impair the functioning of the gravel

bed or obstruct the visibility of signals. as a general rule, we

only use chemical pesticides in the direct vicinity of the

tracks, as there is no alternative means of preventing these

from becoming overgrown. the volume of the substances

used on more than 57,500 km of track in 2013 amounted to

85 t – equivalent to 1.47 kg/km. this means that about 94%

of the tracks being treated with herbicides. We used sub-

stances that are approved by the Federal office of Consumer

Protection and Food Safety specially for use in track areas:

flazasulfuron, flumioxazin and glyphosate. vegetation is

removed from the area surrounding the tracks and also from

stations, paths and other spaces by mechanical means.

Mitigation and compensation measuresNot only the areas along rail transport routes but also other

facilities and spaces managed by DB Group are often impor-

tant habitats, and also the sole refugium in highly-populated

areas, for flora and fauna. this fact forms the basis for our

acknowledgment of our responsibility to maintain biological

diversity, as the business activities of DB Group have a direct

impact on the habitats of any number of species of flora and

fauna.

We take the issue of nature conservation into account

early on in the planning process for the construction or ex -

pansion of railway lines. this allows us to prevent any con-

struction work from encroaching into natural habitats. How-

ever, if there is no other option, then we always ensure that

we carry out adequate mitigation or compensation measures

for the area affected. in December 2013, we also set up a

department with responsibility for ensuring that construction projects

follow good environmental practice ¥ during the construction

phase itself, and that encroachments upon conservation

areas and bird sanctuaries are kept to an absolute minimum.

an example of our endeavors in this regard relates to the

expansion work carried out on the Berlin – Rostock rail line

in the year under review and the related renovation of an old

transformer building earmarked for demolition in the Nos-

sentiner/Schwinzer Heide nature reserve in Mecklenburg.

We have provided € 23,000 to fund the renovation and pres-

ervation of the transformer building and the construction

and maintenance of nesting boxes. in addition, 12 mitigation

measures for nature conservation are being implemented in

the context of the electrification of the Saxon-Franconian

trunk line. the largest relates to the village of Gassenreuth

in the vogtland region, where antiquated stables have

been removed and an area extending over 1.6 ha has been

reforested.

K

Development of business unitsA A

Sluggish development in passenger transport

Transport and logistics activities facing difficult conditions

DB Netze Track with strong cost burdens

Passenger transPort

Development of order book remains positiveIncrease In secured order volume

Orders are classified either as secured revenues, which are

directly related to transport contracts or concessions and

which are independent of passenger numbers (mainly con

cession fees), or as unsecured revenues, which are also gen

erated from existing transport contracts or concessions, but

which are dependent on passenger numbers (mainly farebox

revenues).

Order book in passenger transport [ € billion ]

Dec 31, 2013

Dec 31, 2012

Change

absolute %

DB Bahn Regional 71.1 60.9 + 10.2 + 16.7

Secured 46.5 40.2 + 6.3 + 15.7

Unsecured 24.6 20.7 + 3.9 + 18.8

DB Arriva 16.4 18.6 –2.2 – 11.8

Secured 7.5 8.1 – 0.6 –7.4

Unsecured 8.9 10.5 – 1.6 – 15.2

Total 87.5 79.5 + 8.0 + 10.1

Secured 54.0 48.3 + 5.7 + 11.8

Unsecured 33.5 31.2 +2.3 + 7.4

As of December 31, 2013, total order book volume had in

crea sed by € 8.0 billion yearonyear to € 87.5 billion. This can

be divided into € 54.0 billion secured revenues and € 33.5

billion unsecured revenues. Additions from newly awarded

transport contracts of about € 18 billion and changes in cal

culations of about € 1 billion, mainly due to increased infra

structure costs, were partly offset by disposals, mainly from

services provided, of about € 11 billion.

æ

Revenues from transport [ Secured revenues Unsecured revenues ] contracts DB Bahn Regional and DB Arriva [ € billion ]

2014 6.9 /4.3

2015 6.5 /4.3

2016 6.0 /4.2

2017 4.8 /3.1

2018 4.0 /2.3

2019 3.5 /2.1

2020 3.0 /1.8

2021 2.7/1.7

2022 2.6 /1.4

2023 2.3 /1.4

until 2038 11.7/6.9

TransporT conTracTs In Germany

Concluded transport contracts (rail ) 2013 Term

Volume (million train km)

p. a. total 1)

VDV 3 (Bayern) 1 /2014 – 12 /2023 29.3 158.6

S-Bahn (metro) Hamburg 12 /2018 – 12 /2033 12.7 190.5

Mitteldeutsches S-Bahn-Netz II 12 /2015 – 12 /2030 5.6 83.3

SauerlandNetz (2 lots) 12 /2016 – 12 /2028 5.6 67.8

Ringzug West /NBS 12 /2016 – 12 /2028 5.6 67.2

Dieselnetz Niedersachsen-Südost (former partial lot 1) 12 /2014 – 12 /2029 3.7 55.2

Teilnetz Ost-West (lot Güstrow) 12 /2014 – 12 /2029 3.5 52.5

Main-Spessart 2) 12 /2015 – 12 /2027 2.7 32.1

Interim award of contracts RE3, RB30, RB45 4 3) 12 /2012 – 06 /2016 2.3 8.2

Bad Kleinen – Pasewalk 3) 12 /2012 – 12 /2014 2.1 4.2

Interim concept RSO III Ost 12 /2013 – 12 /2023 1.6 16.0

Interim concept Munich–Nuremberg 12 /2013 – 12 /2016 1.6 4.7

Main-Neckar-Ried 3) 12 /2012 – 12 /2015 1.5 4.5

Other 2 – 12 years 2.8 17.0

Total 1 ) 80.6 761.8

1) Differences due to rounding are possible.2) Option to extend for a further three years.3) Awards of tenders retrospectively published in EU Official Journal.

æ

æ

144 deuTsche Bahn Group 2013 AnnuAl RepORT

overview of business units

Revenues adjusted [ € million ]

Total revenues Change External revenues Change

absolute % absolute %2013 2012 2013 2012

DB Bahn Long-Distance 4,083 4,074 + 9 + 0.2 3,933 3,941 – 8 – 0.2

DB Bahn Regional 8,839 8,908 – 69 – 0.8 8,734 8,820 – 86 – 1.0

DB Arriva 4,180 3,757 + 423 + 11.3 4,175 3,751 + 424 + 11.3

DB Schenker Rail 4,843 4,926 – 83 – 1.7 4,495 4,597 – 102 –2.2

DB Schenker Logistics 14,857 15,389 – 532 – 3.5 14,814 15,335 – 521 – 3.4

DB Services 3,184 3,264 – 80 –2.5 283 286 – 3 – 1.0

DB Netze Track 4,769 4,716 + 53 + 1.1 1,024 981 + 43 + 4.4

DB Netze Stations 1,119 1,102 + 17 + 1.5 428 416 + 12 +2.9

DB Netze Energy 2,775 2,870 – 95 – 3.3 928 1,080 – 152 – 14.1

Other 1,696 1,647 + 49 + 3.0 305 314 – 9 –2.9

Consolidation – 11,226 – 11,132 – 94 + 0.8 – – – –

Reconciliation – –225 +225 – – –225 +225 –

DB Group 39,119 39,296 – 177 – 0.5 39,119 39,296 – 177 – 0.5

Operating profit figures [ € million ]

EBIT adjusted Change EBITDA adjusted Change


DB Bahn Long-Distance 323 364 – 41 – 11.3 649 684 – 35 – 5.1

DB Bahn Regional 777 882 – 105 – 11.9 1,337 1,439 – 102 –7.1

DB Arriva 245 238 + 7 +2.9 467 425 + 42 + 9.9

DB Schenker Rail 57 87 – 30 – 34.5 352 389 – 37 – 9.5

DB Schenker Logistics 335 418 – 83 – 19.9 518 609 – 91 – 14.9

DB Services 29 84 – 55 – 65.5 211 253 – 42 – 16.6

DB Netze Track 665 894 –229 –25.6 1,556 1,822 –266 – 14.6

DB Netze Stations 229 230 – 1 – 0.4 363 359 + 4 + 1.1

DB Netze Energy 71 91 –20 –22.0 161 173 – 12 – 6.9

Other/consolidation – 495 – 580 + 85 – 14.7 – 475 – 552 + 77 – 13.9

DB Group 2,236 2,708 – 472 – 17.4 5,139 5,601 – 462 – 8.2

Margin (%) 5.7 6.9 – – 13.1 14.3 – –

Capital expenditure [ € million ]

Gross capital expenditures Change Net capital expenditures Change


DB Bahn Long-Distance 168 173 – 5 –2.9 168 173 – 5 –2.9

DB Bahn Regional 908 709 + 199 +28.1 885 666 +219 + 32.9

DB Arriva 275 468 – 193 – 41.2 273 467 – 194 – 41.5

DB Schenker Rail 182 371 – 189 – 50.9 182 371 – 189 – 50.9

DB Schenker Logistics 335 321 + 14 + 4.4 335 321 + 14 + 4.4

DB Services 248 268 –20 –7.5 248 268 –20 –7.5

DB Netze Track 5,333 5,033 + 300 + 6.0 1,080 962 + 118 + 12.3

DB Netze Stations 617 552 + 65 + 11.8 157 178 –21 – 11.8

DB Netze Energy 156 149 + 7 + 4.7 83 72 + 11 + 15.3

Other/consolidation 2 9 –7 –77.8 1 9 – 8 – 88.9

DB Group 8,224 8,053 + 171 + 2.1 3,412 3,487 – 75 – 2.2

thereof investment grants 4,812 4,566 +246 + 5.4 – – – –

æ

æ


æ

Thirtyfive tender procedures were concluded by ordering

organizations for regional rail passenger transport in Germany

(previous year: 23). A total of about 108 million train kilo

meters were awarded (previous year: 70 million train kilo me

ters). Of the train kilometers awarded in the year under

review, 86% (previous year: 88 %) were previously operated

by DB Group companies.

We were able to win 21 tender procedures (previous year:

12 procedures). This accounts for 75 % of the train kilometers

awarded (previous year: 52 %).

Concluded transport contracts (bus) 2013 Term

Volume (million Nkm)

p. a. total 1)

VVOWL Gütersloh-Nord 1 /2014 –7/2021 1.8 13.3

VRN Wonnegau-Altrhein (lot 2) 6 /2014 – 6 /2022 1.5 12.1

VRN Worms (lot 1) 6 /2014 – 6 /2022 1.2 9.9

NVV Lohfelden /Söhrewald (LB 109) 12 /2013 –12 /2021 1.0 8.0

VRN Stadt Speyer 1 /2014 –12 /2021 0.9 7.3

ZVBN Ammerland-Ost 8 /2014 –7/2024 0.8 8.1

MVV 370, 377, 378, 379 12 /2014 –12 /2024 0.8 7.7

KVV Murgtal 12 /2013 –12 /2021 0.7 5.7

VSN TN 62 8 /2013 –7/2019 0.7 4.0

Traffiq Frankfurt-Sachsenhausen (lot F 2) 12 /2013 –12 /2021 0.7 5.3

VVR lines 7477 and 7478 6 /2013 –12 /2015 0.6 1.6

Other 2–10 years 5.7 48.8

Total 1 ) 16.4 131.8

1) Differences due to rounding are possible.

In bus transport, services for a total volume of nearly 57 mil

lion commercial vehicle kilometers (nkm) were awarded in

Germany in the year under review (previous year: 40 million

nkm) in a total of 106 tender procedures (previous year: 70

tender procedures). Of the commercial vehicle kilometers

awarded in the year under review, 33 % (previous year: 45 %)

were previously operated by DB Group companies.

In the year under review we participated in 78 invitations

to tender (previous year: 55) with a volume of 46 million

nkm (previous year: 35 million nkm). We won 36 % of the

tender award procedures in which we participated (previous

year: 25 %).

TransporT conTracTs In europe

(excludInG Germany)

DB Arriva participated in selective invitations to tender

throughout europe. Significant tender successes have been

achieved in Great Britain, Denmark and poland. In bus trans

port, development was stable in the year under review.

Concluded transport contracts (bus) 2013 Term

Volume (million bus km)

p. a. total 1)

Denmark 2) Midttrafik 34 6 /2013 -

6 /2021 12.9 89.9

Great BritainLondon

(8 separate lines)2 years

each 12.4 24.7

Italy 2) SIA1 /2014 - 12 /2014 10.4 10.4

Great Britain London

(14 separate lines)5 years

each 9.9 49.5

Italy 2) SAIA Trasporti1 /2014 - 12 /2014 6.6 6.6

Denmark 2) Midttrafik 27/2014 -

7/2015 2.0 2.0

Poland Elblag City Transport1 /2014 - 12 /2020 1.0 7.2

Denmark 2) Movia A22 /2015 -

2 /2017 0.9 1.8

Denmark Midttrafik 366 /2014 -

6 /2022 0.6 4.8

Denmark 2) Movia A10 12 /2013 - 12 /2019 0.6 3.6

Other 1 – 3 years 0.2 0.4

Total 1 ) 57.5 200.9

1) Differences due to rounding are possible. 2) Extension of existing contract.

Concluded transport contracts (rail ) 2013 Term

Volume (million train km)

p. a. total 1)

Poland Kujawsko –Pomorskie12 /2013 -

12 /2015 1.6 3.2

1) Differences due to rounding are possible.

In Great Britain DB Arriva was successful with five additional

tenders for patient transport services with a total volume of

4.2 million kilometers per year. Four new contracts started in

the year under review: April 2013 (0.1 million kilometers per

year/term: three years); July 2013 (0.4 million kilometers

per year/term: five years); August 2013 (0.4 million kilo

meters per year/term: three years); and november 2013 (2.9

mil lion kilometers per year/term: five years). A contract (con

tin uation of existing service) will start in April 2014 (0.3 mil

lion kilometers per year/term: three years).

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147Group manaGemenT reporT DevelOpmenT OF BuSIneSS unITS

DB Bahn Long-Distance business unitevenTs In 2013

Expansion of green long-distance transport

Since April 2013, all 5 million BahnCard and season ticket

holders, as well as all corporate customers registered with

bahn.corporate travel on trains with 100 % ecopower on all

longdistance journeys. All other passengers have the chance

to “green” their journey for a one euro surcharge by selecting

the optional service “environment plus.” Business trips of

DB Group employees are also CO₂free. Through these mea

sures, the share of renewable energies in the electricity pur

chased by DB Bahn longDistance will amount to about 75 %

in 2014.

Operations restricted significantly due to flooding

Due to flooding near Stendal in June 2013 on the highspeed

line Hanover–Berlin, longdistance trains to and from Berlin

had to be rerouted or canceled on this part of the line. In

order to provide reliability for travelers on the ICe and IC

lines affected, from midJune we operated trains according

to an interim timetable. We were able to continue to provide

service with this provisional concept, but there were still

significant reductions in quality for our customers in the

form of train journeys that were up to 60 minutes longer and

canceled connections. Only in early november 2013 could

the line return to operation.

Limitations to the availability of the ICE fleet

At the beginning of the year, the availability of the ICe fleet

was affected by the harsh winter. This led to increased occur

rences of damage and complications for maintenance. The

positive development in vehicle availability seen after the

end of the winter was significantly negatively impacted in

June 2013, particularly by the elbe flood. Due to long detours,

for instance, trains were delayed in showing up for mainte

nance, and a lack of infrastructure capacity often forced

trans fers to be canceled or postponed.

expected improvements in the availability of the existing

ICe 3 and ICe T fleets have so far failed to materialize due to

delays in the planned replacement of wheel sets. Approval

of the ICe 3 trains featuring the newly developed drive wheel

sets is currently not expected until the beginning of 2014, at

the earliest. The refitting of the trains is not anticipated to

be completed until 2016. The intensive ultrasound inspec

tions which this makes necessary will require additional trips

to maintenance facilities and lead thereby to crowdingout

effects in the maintenance facilities. Furthermore, there is an

increased need to replace the drive wheel sets of ICe 1 and

ICe 2 trains. Availability was also limited due to lower vehicle

reserves as a result of accident events and adverse weather

conditions (hurricaneforce storms Christian and Xaver).

Delivery of the first of 16 new ICe 3 series 407 trains

ordered, originally planned for the end of 2011, has been

further delayed. Only at the end of December 2013 were the

first trains able to be approved by the Federal Railway

Author ity for double traction operation in the German rail

net work. The vehicles will first be tested in extended and

expanded test operations. After June 2014, the new ICe trains

will also be introduced into intensive passenger service on a

probationary basis.

Vehicle modernization continued

The redesign of the ICe 2 fleet was completed in the year

under review. All 44 ICe 2 trains were comprehensively mod

ernized and are again in service. The project involved capital

expenditures of more than €100 million.

We are also improving passenger comfort significantly

through the IC modernization program. The first modernized

IC cars have been returned to use since the schedule change

in December 2012. The comfort improvement measures for

about 770 passenger cars for domestic German IC and inter

national eC transport are to be completed by the end of

2014. By the end of 2015, in addition, these cars will be mod

ernized with additional technological improvement mea

sures for a total of € 250 million. We were able to modernize

about 500 cars already in the year under review.

We have also begun the redesign of our ICe T fleet in the

year under review. A total of 42 trains in series 411 and 415 are

to be modernized by the end of 2015.

Start of IC bus service

In April 2013, IC bus service started on the munich–Freiburg

and Berlin–Krakow lines. The buses are included in our price

and sales system and are a part of our timetable. In August

2013, IC bus transport commenced on the nuremberg–mann

heim line. We have also expanded or extended other connec

tions through new stopovers, for example the stop Ravens

burg along the munich–Freiburg line.

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markeTs and sTraTeGy

The DB Bahn longDistance business unit provides long

distance rail transport services within Germany and across

its borders. The core business consists of scheduled daily

ser vices with ICe, IC and eC transport. The business unit also

offers car transport, night train service, and longdistance

bus transport.

urbanization, which leads to higher demand in the core

net work, and the further development of international trans

port are the main opportunities for longdistance transport.

A growing environmental consciousness in society also en

ables an increase of market share in intermodal competition.

The modernization of our fleet represents in equal measures

an opportunity as well as a challenge. On the one hand, the

ongoing general overhaul of our passenger cars as well as

the delivery of ICx trains from December 2017 promise in

creased flexibility and growth opportunities. On the other

hand, delays in delivery of trains ordered present an ongoing

challenge. There are further challenges of the threat of infra

structure bottlenecks as well as from market entry of inter

modal and intramodal competitors.

The longDistance 2020 strategy follows the aim of being

the first choice for customers and employees in 2020.

In the economic ≈ dimension, DB Bahn longDistance

has the aim of offering its customers the most relaxing form

of travel. Among other services, this consists of reserved

seating as well as continuously stable mobile phone and

Internet coverage. To this end, all trains in the ICe fleet will

be equipped with wireless Internet hotspots by 2015. The use

of our products and services should become even simpler.

This includes both the traffic and information systems for

trip preparation as well as the trip itself. The BahnCard, the

leading mobility card in Germany, will offer simplified access

to a diverse range of modes of transport. The inclusion of

further mobility services is being planned. DB Bahn long

Distance wants to offer the most recognized and trusted

product until 2020, with an eye on both travel times and ser

vice. Our employees provide active support for our passen

gers in case of service interruptions and take care to pro vide

both optimal information as well as alternative solutions.

new trains entering service make an important contribution

to the improvement of reliability in longdistance transport.

Commercial success is an essential precondition for further

sustainable development and profitable growth æ.

In order to keep our promises to our customers, in the so cial

† dimension we expect our employees to have a strong

focus on customers and quality. At the same time we pro

mote a social and tolerant collaborative spirit which makes

DB Bahn longDistance one of the most attractive em ployers.

The inclusion of our employees, both in terms of individual

working conditions as well as the strategic orientation of the

company, is important for us.

In the environmental ¥ dimension, DB Bahn longDistance

has the aim to be the most environmentally friendly provider

of services to its customers by 2020. With the introduction of

green long-distance travel [ page 147 ] we have taken the first

step in this direction. perspectively, all trips in longdistance

transport should be operated with ecopower.

developmenTs In The year under revIew

The year under review had moderate results for the business

unit DB Bahn longDistance. Flooding, increased competi

tion as a result of the liberalization of the longdistance bus

market as well as limited vehicle availability all had nega

tive effects on performance. Yearonyear revenue grew at

the same rate as in the previous year due largely to the price

cam paigns at the end of 2012. Capacity utilization increased

slightly. As a result of higher cost burdens, the previous year’s

results could not be achieved again.

Punctuality negatively impacted

Punctuality passenger transport rail [ % ] 2013 2012 2011

DB Bahn Long-Distance 73.9 79.1 80.0

Rate of people making connections (long-distance transport /long-distance transport) 86.3 88.7 89.9

In longdistance transport, the annual average degree of

punc tuality in the year under review totaled 73.9 % (previous

year: 79.1 %). We were not quite able to match the previous

year’s punctuality level in the year under review in this area.

The decline is essentially due to difficulties due to severe

winter conditions at the beginning of the year, the speed

reductions required due to longlasting limitations from

flooding and mining damage in the area of the Essen central

station [ page 168 ] since the end of november. The costly

replacement concept as a result of flooding on the elbe led

not only to longer journey times but also affected negatively

the punctuality of the entire network especially in long

distance transport.

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The rate of people making their connections totaled 86.3 %

(previous year: 88.7 %). The decrease was due to the nega

tively affected punctuality.

Customer satisfaction falling

Customer satisfaction [ SI ] 2013 2012 1) 2011

Long-distance transport 61 63 62

Night trains 72 71 70

Car trains 70 68 68

1) Figures adjusted.

Despite significant operative restrictions, customer satisfac

tion remained stable in the year under review, although with

a slightly worsening trend. Customer satisfaction with their

most recent longdistance transport trip was rated with a

customer satisfaction index (SI) score of 74 (previous year

SI of 75). In the year under review overall satisfaction with

DB Fernverkehr AG was evaluated with an SI of 61 (previous

year SI of 63). The overall satisfaction of our customers in car

train transport was rated with an average SI of 70 (previous

year SI of 68) and of our night train customers with an SI of

72 (previous year: 71).

Moderate commercial development

DB Bahn Long-DistanceSelected key figures [ € million ] 2013 2012

Change

absolute %

Passengers rail (million) 130.9 131.3 – 0.4 – 0.3

Passengers bus (million) 0.3 – + 0.3 –

Volume sold rail (million pkm) 36,777 37,357 – 580 – 1.6

Volume sold bus (million pkm) 110 – + 110 –

Volume produced (million train-path km) 142.6 145.1 –2.5 – 1.7

Load factor (%) 50.7 50.3 – –

Total revenues 4,083 4,074 + 9 + 0.2

External revenues 3,933 3,941 – 8 – 0.2

EBITDA adjusted 649 684 – 35 – 5.1

EBIT adjusted 323 364 – 41 – 11.3

Gross capital expenditures 168 173 – 5 –2.9

| Employees as of Dec 31 (FTE) 16,564 15,947 + 617 + 3.9

Continuous marketing success led to an increase in volume

sold at the beginning of the year under review, which was

more than offset by the negative effects of flooding, intensi

fied competition through new longdistance bus services as

well as the limited availability of vehicles. The total number of

passengers fell (– 0.3 %), as did the volume sold (–1.6%) and

the volume produced (–1.7 %). Capacity utilization in crea sed

slightly (+ 0.4 percentage points).

price campaigns, growth in crossborder transport to Italy

as well as higher interGroup revenues from employee trips

led to a slight increase in total revenues (+ 0.2 %). external

revenues remained slightly under the level of the previous

year (– 0.2 %) due to the flooding and limited vehicle avail

ability. Other operating income increased slightly, essen

tially as a result of floodingrelated insurance payments.

Cost of materials fell by 1.3 %. Here the driver was essen

tially the lower maintenance costs as a result of the end of the

onetime effects from the previous year (addition to provi

sions for maintenance obligations of DB AutoZug). Counter

trends were increased energy costs as well as higher costs

for cleaning of trains, due to expansion of cleaning efforts

while in service [ page 124 ]. price increases for use of infra

structure could be fully offset by lower usage as a result of

flooding. personnel expenses increased noticeably by 6.7 %

above the level of the previous year due to new hires espe

cially in onboard services as well as the tangible effects of

wage increases. Other operating expenses rose sharply by

4.9 %, in part due to higher expenditures for passenger rights

[ page 103 ]. Depreciation also was above the levels of the pre

vious year due to the activation of passenger cars as part of

the IC modernization program as well as the refit of the

european train control system (+1.9 %).

Higher costs could only partially be offset by slightly

increased revenues, resulting in a decrease in adjusted

eBITDA by € 35 million to € 649 million and in adjusted eBIT

by € 41 million to € 323 million.

Due to the conclusion of the redesign of the ICe 2 fleet,

gross capital expenditures fell by 2.9 %. The focus was on

capital expenditures in modernization of IC passenger cars,

the upgrading of the ICe 3 and ICe T multiple units with the

european train control system (eTCS) and the redesign of the

ICe 2 fleet.

The number of employees rose by 3.9 % due to new hires

in the context of the quality improvements as of December

31, 2013.

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DB Bahn Regional business unitevenTs In 2013

Success rate up year-on-year

In the year under review, DB Bahn Regional had to defend its

position in the highly competitive German regional transport

market and won a number of tender procedures [ page 144 ff. ]

for both rail and bus transport. The two largest contracts are:

A the SBahn (metro) contract for Hamburg with a term of

15 years until 2033,

A the third transport operation contract (vDv III) of local

rail passenger transport services in Bavaria. The contract

took effect from January 1, 2014 and contains a stepby

step transfer of all partial networks to the competition

by no later than December 2023.

Continuing delays with regards to the delivery of new trains

In 2007, DB Bahn Regional and Bombardier signed a frame

work agreement for the development, manufacture and

deliv ery of up to 321 electric multiple units (emu) from the

442 series (Talent 2) on a platform basis. Altogether we have

requested 295 vehicles.

In order to push forward with the delivery of vehicles

despite existing problems, we have agreed on a procedure

with Bombardier whereby we will continue to take deliveries

but will hold back a certain amount of the purchase price.

Based on this agreement, 266 vehicles in total were deliv

ered and received by us by the end of the year under review.

All of the vehicles were delivered with significant delays.

Bombardier is also late in delivering the remaining 29 vehi

cles. These delays have required, and still do require, sub

stitution transport services with old vehicles. There are

many defects in the vehicles delivered. The remedying of

these defects is ongoing.

The delivery of 87 emu of the series 430 for the SBahn

(metro) Stuttgart began in April 2013 after delays but could

not be continued after provisional contractual procurement

of 13 vehicles in the middle of the year due to technical

problems. Substitute transport with older vehicles was also

necessary because of these delays.

The first of 56 diesel multiple units (Dmu) of the 620/622

series for the Diesel network Cologne should have been deliv

ered by the manufacturer, Alstom, in June 2013. no vehicle

had been delivered by the end of the year under review due

to quality problems and delays in approval. The transport

contract Diesel network Cologne has therefore been served

by substitute transports since December 2013.

Lawsuit of S-Bahn (metro) Berlin against Bombardier

The investigation of the service disruptions of SBahn (metro)

Berlin since may 2009 found that they were caused essen

tially by defects in the 481 /482 series vehicles delivered by

Bombardier. This result confirmed a report submitted in July

2011 by an independent expert group set up by the Federal

states of Berlin and Brandenburg.

Out of court negotiations with the vehicle manufacturer

Bombardier collapsed at the beginning of 2013. Thereafter,

before the conclusion of the agreedupon limitation provi

sion, SBahn (metro) Berlin filed a claim against Bombardier

with the Berlin Regional Court concerning serious defects in

wheels and brakes and in addition filed a motion to order

Bombardier to compensate for further damages.

Subsidy procedures and requests for information

on transport contracts

In the context of the ongoing formal investigation against

the Federal Republic of Germany for the alleged provision of

illegal subsidies as a result of the conclusion of a transport

contract between DB Regio AG and the States of Berlin and

Brandenburg, there was no significant difference in the year

under review. This also applies to the information requests of

the european Commission concerning the transport contract

for SBahn (metro) Berlin, the transport contract RhineRuhr

trans port association (verkehrsbund RheinRuhr, vRR) as

well as the transport contract Baden Württemberg. It remains

to be seen if and possibly to what extent the Commission will

im ple ment additional steps.


The German local rail passenger transport market will again

be one of the most interesting markets in europe in the

coming years. In the next five years, we expect more than

60 tender procedures to be launched for a likely total volume

of more than 250 million train kilometers. This accounts for

about onethird of the total German local rail passenger trans

port market.

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The DB Bahn Regional business unit has set itself the long

term goal to remain the leading public transport company in

Germany. We pay attention not only to the size of the com

pany, but also to the way in which we pursue our business,

with an eye on the interaction between profitability, a focus

on customers and employees, and innovative and environ

mental aspects. The longterm aim is to bring these compo

nents together harmoniously.

In the economic ≈ dimension we want to increase our cus

tomer satisfaction and defend our market position profi tably.

Our service pledge in the rail line of business is the cen

tral orientation focus of our presence for our two customer

groups – ordering organizations and passengers. In addition

to the comprehensive activities, in order to become more effi

cient and effective a focus on the customer must be main

tained. We are currently implementing concrete measures

aimed at improving our services as part of the DB Group

wide customer and quality initiative. The ordering organi

zations and the passengers are also our focus in the bus line

of business. A survey of ordering organizations as well as a

market analysis of passenger needs is the foundation upon

which measures to improve customer satisfaction is based.

In 2012 DB Bahn Regional Rail was not able to win as

many contracts as in the previous year. Therefore, in the year

under review, all regions, transport operators and central

processes were examined for their efficiency and orientation

to customer needs. As a result, numerous measures were

identi fied, evaluated and implemented with the aim of im

proving our revenue and expenditure positions as well as

quality and thereby increase our competitiveness over the

long term.

Bus transport had to prove itself in a field that has become

increasingly competitive in recent years. Increasing cost

pressure in competitive invitations to tender was balanced

with a comprehensive efficiency program by DB Bahn Regio

nal Bus. Over the long term, the market share in the public

road passenger transport market shall be maintained and

profitable growth opportunities through innovative products

and creative market penetration shall be used.

In the social † dimension, we want to increase employee

satisfaction. Satisfied employees are essential for a success

ful business in the public local transport market. For this, we

have placed an emphasis in the year under review on the eva l

uation of the employee survey and the derivation of appro

priate measures.

In the environmental ¥ dimension, we want to develop

fur ther our environmental advantages. longterm business

success will also be shaped by the extent of our acceptance

of environmental responsibility. The aim here is to build fur

ther our strengths as a structurally environmental transport

operator, above all compared to auto transport.


The business development of DB Bahn Regional in the year

under review was characterized by decreases in volume sold

in both the rail and bus lines of business. While the develop

ment in the rail line of business was moderate on the whole

because of the loss of invitations to tender and an increase

in personnel expenses due to wage increases, the bus line of

business recorded a drop in performance due to negative

demographic effects and increased competition.

Punctuality records slight decline

Punctuality passenger transport (rail ) [ % ] 2013 2012 2011

DB Bahn Regional 94.6 94.9 1) 95.1 1)

Regional trains 92.5 93.3 93.2

S-Bahn (metro) d.c. 95.1 95.6 95.5

S-Bahn (metro) a.c. 97.6 96.9 98.0

1) Figure adjusted.

In rail transport, as a result of difficulties in operations, punc

tu ality in the year under review fell slightly to 94.6% (pre

vious year: 94.9 %). Improvement was recorded only in SBahn

(metro) a.c. in Berlin and Hamburg.

Customer satisfaction improved slightly

Customer satisfaction [ SI ] 2013 2012 2011

Regional transport (rail ) 68 67 66

Regional transport (bus) 74 – –

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In the year under review, customer satisfaction with their

most recent trip in rail services resulted in an SI of 76 (pre

vious year: SI of 76). Overall satisfaction with rail services

improved slightly in the year under review, resulting in an

SI of 68 (previous year: SI of 67).

The measurement of customer satisfaction in bus services

was newly introduced in the year under review, so there are

no comparable figures from previous years. In the year under

review, satisfaction with the latest bus trip among customers

of scheduled bus services reached an SI of 79. For satisfac

tion of the entire bus line of business, an overall SI of 74 was

achieved.

Business development slightly lower

DB Bahn RegionalSelected key figures [ € million ] 2013 2012

Change

absolute %

Passengers (million) 2,588 2,565 +23 + 0.9

Volume sold (million pkm) 51,833 51,778 + 55 + 0.1

Total revenues 8,839 8,908 – 69 – 0.8


Concession fees (rail ) 4,168 4,265 – 97 –2.3

EBITDA adjusted 1,337 1,439 – 102 –7.1

EBIT adjusted 777 882 – 105 – 11.9

Gross capital expenditures 908 709 + 199 +28.1

| Employees as of Dec 31 (FTE) 36,878 36,959 – 81 – 0.2

Growth in volume sold was stable in the year under review

because the decrease in the bus line of business with a minus

of 2.0 % as a result of lower numbers of schoolchildren and

losses of invitations to tender could be offset by an increase

in the rail division (+ 0.5 %).

Business development of DB Bahn Regional was charac

terized essentially by growth in the rail line of business,

which is the strongest in terms of revenue and performance.

As a result, the drop in revenues seen here had a negative

effect on profits for the business unit. The bus line of busi

ness with increased growth in revenue contributed positively

to revenue growth.

Overall, the profit situation developed negatively. This

took place due to lower revenues, the decrease in other oper

ating income (–14.7 %) and increases in personnel expenses

due to works agreements (+3.2 %). While adjusted eBITDA

sank by € 102 million to € 1,337 million, adjusted eBIT de

creased by € 105 million to € 777 million.

Gross capital expenditures increased significantly due to

higher capital expenditures in the vehicle fleet, particularly

in the rail line of business. Important measures were the

procurement of 442 series emu for the region Werdenfels in

Bavaria, the region nordost Berliner umland and Warnow,

mittelhessen and for the SBahn (metro) leipzig. In addi

tion, new 430 series emu were purchased for SBahn (metro)

Stuttgart. We also increased our capital expenditures in the

area of workshops and maintenance facilities (for example,

in ulm and Cologne).

employee numbers in the business unit have remained

nearly stable in comparison with the figure for December 31,

2012. A slight decrease in employee numbers in the rail line

of business was offset by growth in the bus division.

RAIl lIne OF BuSIneSS

On the whole due to the loss of invitations to tender and a

rise in personnel expenses due to wage increases the busi

ness development in the rail line of business was moderate.

The increase in the number of passengers, however, had a

positive effect.

Rail line of business Selected key figures [ € million ] 2013 2012

Change

absolute %

Passengers (million) 1,935 1,892 + 43 +2.3

Volume sold (million pkm) 44,409 44,201 +208 + 0.5

Volume produced (million train-path km) 487.7 496.8 – 9.1 – 1.8

Total revenues 7,901 8,031 – 130 – 1.6

External revenues 7,535 7,608 –73 – 1.0

Concession fees (rail ) 4,168 4,265 – 97 –2.3

EBITDA adjusted 1,206 1,301 – 95 –7.3

EBIT adjusted 712 813 – 101 – 12.4

Gross capital expenditures 826 628 + 198 + 31.5


Development in the rail line of business was characterized

by a decline in volume produced (–1.8 %). The northeast and

southeast regions in particular accounted for the lion’s share

of the decline. In contrast, volume sold could be increased

slightly (+ 0.5 %). The positive development of the number

of passengers (+2.3 %) is due to increased demand in SBahn

(metro) Hamburg and the regions BadenWürttemberg and

Bavaria.

The lower volume produced also had a negative impact

on the development of revenues. pricing measures, in con

trast, had a positive effect. nevertheless both total revenues

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and external revenues decreased (–1.6% and –1.0 % respec

tively). The decrease in total revenues was largely a result

of lower internal revenues due to the merger of DB Regio

nRW GmbH with DB Regio AG. As a result of the decline in

performance, concession fees also fell, which could be par

tially offset due to the regular annual increases of conces

sion fees. Other operating income decreased as a result of

lower utilization and reversal of other provisions.

lower expenses for infrastructure usage due to the lower

volume produced and lower maintenance costs led to a

reduction in the cost of materials (–1.9 %). Increased wages

as a result of the wage agreement led to higher personnel

expenses (+3.1 %). Other operating expenses fell (–10.4%)

especially because of the lower setup of provisions in 2013.

Depreciation rose yearonyear (+1.0 %) through new vehicle

additions.

lower revenues in conjunction with an increase in per

sonnel expenses led to a decrease of € 95 million in adjusted

eBITDA to € 1,206 million, and a € 101 million drop in adjusted

eBIT to € 712 million.

Gross capital expenditures were significantly higher year

onyear. This was due primarily to the addition of EMU of the

442 series [ page 150 ] and the 430 series [ page 150 ].

The number of employees decreased slightly in compari

son to December 31, 2012 due to performance losses.

BuS lIne OF BuSIneSS

In addition to declining numbers of schoolchildren and lower

performance as a result of increasing competition, onetime

mandatory refund of compensation payments also slowed

the business development of the bus line of business. losses

in bus transport were reduced by optimizing the business

portfolio.

Bus line of businessSelected key figures[ € million ] 2013 2012

Change

absolute %

Passengers (million) 653.4 672.4 – 19.0 –2.8

Volume sold (million pkm) 7,424 7,577 – 153 –2.0

Volume produced (million bus km) 567.3 578.2 – 10.9 – 1.9

Total revenues 1,304 1,294 + 10 + 0.8


EBITDA adjusted 131 138 –7 – 5.1

EBIT adjusted 65 69 – 4 – 5.8

Gross capital expenditures 82 82 – –

| Employees as of Dec 31 (FTE) 8,505 8,259 +246 + 3.0

The year under review saw a decline in performance in bus

trans port. The total number of passengers fell (–2.8 %), as did

the volume produced (–1.9 %) and the volume sold (–2.0 %).

The main reasons for this were lower numbers of schoolchil

dren, the loss of invitations to tender and performance reduc

tions in the context of business portfolio optimization.

lower performance and mandatory refund payments in

accordance with Section 45(a) of the German law on pas

senger Transport (personenbeförderungsgesetz; pBefG) in

the north RhineWestphalia region was also noticeable in

the negative external revenue growth (–1.0 %). Total reve

nues could be increased due to higher internal revenues from

rail substitution services (+ 0.8 %).

Cost of materials were slightly up yearonyear because

of increased costs for maintenance services as well as price

related increases in energy costs, among other reasons.

personnel expenses increased significantly because of

both volume effects and wage increases. In contrast, depre

ciation fell compared to the previous year figure due to the

postponement of capital expenditures.

Slighty positive revenue growth was more than offset by

the rise in costs especially for personnel, which led to

declines in adjusted eBITDA by € 7 million to € 131 million and

in adjusted eBIT by € 4 million to € 65 million.

Gross capital expenditures remained at the same level as

in the previous year.

The number of employees increased in comparison to

December 31, 2012 due to the expansion of services in certain

regions.

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DB Arriva business unitevenTs In 2013

Strengthening of European network

A In the year under review, DB Arriva acquired the business

of Veolia Eastern Europe [ page 72 ], bus operations in the

Czech Republic [ page 72 ] from Abellio and the remaining

share of the previous joint venture Centrebus [ page 72 ].

A In the european regional transport market, DB Arriva

proved itself and was able to successfully conclude numer -

ous tender procedures [ page 146 ].

A Together with a joint venture partner, DB Arriva success

fully commenced transport operations in Budapest.

A The contract of our joint venture lOROl (london Over

ground Rail Operations ltd.) was extended ahead of

schedule for two additional years until november 2016.

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A The Department for Transport announced that the Cross

Country franchise would be extended for an additional

43 months. negotiations have not yet concluded.

A DB Arriva succeeded in prequalifying for the invitations

to tender for ScotRail (main operator of Scottish rail ser

vices), Caledonian Sleeper (night train service between

Scotland and london) and Crossrail (london rail trans

port project). Our tenders for Caledonia Sleeper and

Cross rail have been submitted, while our tender for

ScotRail is still under preparation.

A We have strengthened the openaccess transport services

of Grand Central Railway in Great Britain between the

northeast and london.

A DB Arriva began consultations concerning a new high

speed transport service between Scotland and london.

Countermeasures in the processing of transport contracts

In the year under review, DB Arriva concentrated intensely

on measures to remedy transport contracts with insufficient

profitability. Among these:

A Services for public passenger transport in greater Stock

holm. In the year under review, the passenger numbers

upon which calculations were based were either not

achieved or measured with error. In addition, due to plan

changes and line changes, high additional costs were

required for operations. DB Arriva entered into followup

negotiations with the ordering organization Sl, the Stock

holm regional transport authority.

A Bus transport services on malta and Gozo. We sold Arriva

Malta [ page 193 ] since no reasonable profit can be achieved

on the basis of the existing contract.

A Services operated in northern Sweden by Botniatåg AB,

a joint venture of DB Arriva with the Swedish state rail

ways SJ. The expected farebox revenues could not be

achieved, because both the vehicles provided by the

ordering organization norrtåg and the infrastructure are

defective. Botniatåg is in discussions with the ordering

organization.

A DB Arriva canceled the transport contract for the opera

tion of commuter transport in Östgötapendeln/Sweden

early due to lack of profitability. The contract was sup

posed to run until 2020 and will now be offered for tender

by the ordering organization in 2014.

Appropriate balance provisions have been made for counter

measures. The effects are not included in adjusted profits.

Start of the premium bus service Sapphire

In the year under review, DB Arriva began a new premium

bus service under the name Sapphire. The fourth route was

brought into service in December. A total of 41 Sapphire

buses are in service, each of which is equipped with comfort

able seats, more legroom and free wireless Internet access,

among other amenities. We want to expand this service to

other routes in 2014.


DB Arriva is our european growth platform in passenger

trans port. DB Arriva offers transport services in 14 european

countries:

Activities of DB Arriva per country Services offered

Denmark bus /rail /waterbus

Great Britain bus /rail /patient transport

Italy bus /waterbus /tram

Croatia bus

The Netherlands bus /rail /waterbus

Poland bus /rail

Portugal bus /rail /tram

Sweden bus /rail /tram

Serbia bus

Slovakia bus

Slovenia bus

Spain bus

Czech Republic bus /rail

Hungary bus

In the DB Arriva business unit, we want to win over customers

with customeroriented, efficient, economical transport solu

tions. The activities of DB Arriva are divided into three lines

of business: uK Bus, uK Trains and mainland europe.

A In the uK Bus line of business, we aim to optimize existing

business and expand the services we offer our customers.

For this purpose we are investing in customerfocused

projects and increasing our activities to attract custom

ers, among other projects.

A In the uK Trains line of business we are focused on the

im provement of our services and customer satisfaction,

on the development of open access transport services

as well as the strengthening of both the extension of

exist ing transport contracts and winning new transport

contracts.

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A In the mainland europe line of business, we want to grow

in the european passenger transport market by winning

invitations to tender, focused m & A activities as well as

the further strengthening of our existing activities.

In the economic ≈ dimension we want to increase our cus

tomer satisfaction and assure our quality. profitable growth

is only possible with the provision of highquality service and

satisfied customers. To achieve this, we are continuously

investing in new vehicles and improving our customer infor

mation systems. In addition we are introducing new ticketing

systems through mobile and online solutions.

We also plan to continue to expand our position as a prof

it able market leader in the future with our existing prod uct

portfolio in current and new countries. We are also selec

tively expanding our product portfolio.

In the social † dimension, as a top employer, we want to

offer employees an attractive and secure work place. For the

last ten years, DB Arriva has carried out employee surveys

with the aim of further increasing employee satisfaction.

In the environmental ¥ dimension, on our way to becoming

an ecopioneer, we ensure that we use resources sparingly.

We employ innovative technologies in order to continuously

reduce the CO₂ emissions of our vehicles. Already we have

equipped about 9,300 buses with environmentally friendly

technology. DB Arriva will also invest over € 5 million in its

existing train fleet in Great Britain in order to reduce fuel use

and CO₂ emissions. Furthermore, we are pursuing measures

to reduce water usage and waste production. The efficient

use of energy is just as important to us. For this reason, we

have equipped some of our sites with rainwater collection

systems, solar modules and their own wind turbines.


Developments in the DB Arriva business unit in the year

under review were driven by significant improvements in the

mainland europe line of business. This resulted from newly

won transport operations in the netherlands and the acquisi

tion of veolia eastern europe. We faced particular challenges

in the form of the difficult economic climate and austerity

measures in many countries.

Stable punctuality

Punctuality passenger transport [ % ] 2013 2012 1) 2011 1)

| DB Arriva (rail ) 91.7 91.8 92.5

1) Figure adjusted.

The punctuality rate of our rail passenger transport opera

tions in europe (Great Britain, Denmark, Sweden, the nether

lands and poland) in the year under review remained nearly

stable, despite infrastructure constraints due to unusually

adverse weather conditions.

Customer satisfaction records slight decline


| DB Arriva (bus and rail UK ) 83 84 83

In the DB Arriva business unit, customer satisfaction, com

piled by ordering organizations, serves as an important

factor for success. The SI in the year under review was 83,

down slightly yearonyear from 84. The high value under

scores the customer focus of DB Arriva.

Business development slightly positive

DB ArrivaSelected key figures [ € million ] 2013 2012

Change

absolute %

Passengers (million) 1,632 1,421 +211 + 14.8

Volume sold rail (million pkm) 8,309 7,628 + 681 + 8.9

Volume produced (million train km) 133.9 116.7 + 17.2 + 14.7

Volume produced (million bus km) 975.2 814.3 + 160.9 + 19.8

Total revenues 4,180 3,757 + 423 + 11.3

External revenues 4,175 3,751 + 424 + 11.3

EBITDA adjusted 467 425 + 42 + 9.9

EBIT adjusted 245 238 + 7 +2.9

Gross capital expenditures 275 468 – 193 – 41.2

| Employees as of Dec 31 (FTE) 46,718 39,545 + 7,173 + 18.1

Overall, development for the DB Arriva business unit was

slightly positive, with an increase in revenues (+11.3 %) and

in adjusted eBIT (+2.9 %). The increase in revenues was pri

marily due to the acquisition of veolia eastern europe and

the newly commenced transport services in Sweden and the

netherlands. However, foreign exchange rates had negative

effects.

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The cost of materials increased by about 11.7 % during the

year under review as a result of higher energy costs, mainte

nance costs and trainpath utilization costs. The acquisition

of veolia eastern europe also had a noticeable effect in this

respect. personnel expenses also rose (+11.4%) as a result

of increased employee numbers due to the expansion of our

business activities. exchange rate effects partially helped

compensate for the increase in expenses.

The improvement in adjusted eBIT by € 7 million to € 245

million was particularly characterized by the positive devel

opment of the mainland europe line of business. negative

exchange rate developments had a dampening effect.

Gross capital expenditures fell in the year under review.

This resulted from developments in the netherlands and

Sweden, where high capital expenditures were made because

of invitations to tender won in the previous year. The focus

was on the procurement of rolling stock and buses, mainly

in Great Britain, Sweden, the netherlands and Italy.

The number of employees increased noticeably (+18.1 %)

due mostly to the acquisition of veolia eastern europe.

uK BuS lIne OF BuSIneSS

The climate for the uK Bus line of business remained chal

lenging in the year under review. Austerity measures as well

as a difficult macroeconomic climate dampened growth. The

negative impact from lost transport services was largely

offset by measures implemented to increase efficiency.

UK BusSelected key figures[ € million ] 2013 2012

Change

absolute %

Passengers (million) 755.7 759.3 – 3.6 – 0.5

Volume produced (million bus km) 403.5 414.6 – 11.1 –2.7

Total revenues 1,215 1,258 – 43 – 3.4



EBIT adjusted 126 135 – 9 – 6.7

Gross capital expenditures 120 120 – –

| Employees as of Dec 31 (FTE) 17,963 17,558 + 405 +2.3

The performance development in the uK Bus line of business

was negative during the year under review. Service reduc

tions by ordering organizations and a weak economic climate

led to a drop in volume produced (–2.7 %).

Revenue increases due to the growth of DB Arriva Transport

Solutions were more than offset by exchange rate effects

(about € – 60 million). So overall a drop in revenues was to be

recorded. Total revenues and external revenues decreased

(–3.4% and –3.2 % respectively).

In cost developments, however, the effect of exchange

rate effects was positive, which was in turn weakened by

increased pressure on the cost side. In total cost reductions

were proportionally lower compared to revenue reductions.

As a result, the uK Bus line of business recorded oper

ating profits below that of the previous year. While adjusted

eBITDA fell by € 1 million to € 207 million, adjusted eBIT

decreased by € 9 million to € 126 million.

Gross capital expenditures remain at the same level as in

the previous year.

The number of employees increased in the year under

review by 2.3 %, mostly due to the growth of DB Arriva Trans

port Solutions and the acquisition of Centrebus.

uK TRAInS lIne OF BuSIneSS

Business developments in the uK Trains line of business

were positively influenced especially by increased farebox

revenues, business expansion in Grand Central Railway as well

as higher revenue support payments for the CrossCountry

franchise.

UK TrainsSelected key figures [ € million ] 2013 2012

Change

absolute %

Passengers (million) 122.8 122.3 + 0.5 + 0.4

Volume sold (million pkm) 6,207 6,113 + 94 + 1.5

Volume produced (million train-path km) 76.9 76.9 – –

Total revenues 1,343 1,290 + 53 + 4.1



EBIT adjusted 38 44 – 6 – 13.6

Gross capital expenditures 18 23 – 5 –21.7


performance development varied in the year under review.

While volume produced remained stable, volume sold im

proved slightly (+1.5 %).

On the revenue side, positive effects occurred as a

result of higher revenue support payments for the Cross

Country franchise (€ + 41 million) and from increased fare

box revenues.

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However, negative exchange rate effects had an adverse im

pact (about € – 60 million). Both total and external revenues

increased by about 4%.

On the cost side, there was an increase in cost of mate

rials (+ 5.4%) mainly resulting from higher trainpath utiliza

tion fees. exchange rate effects partially helped compensate

for the increase in expenses.

Adjusted profit figures worsened overall. Adjusted eBITDA

fell by € 3 million to € 62 million, while adjusted eBIT fell by

€ 6 million to € 38 million.

Gross capital expenditures fell significantly by 21.7 %

yearonyear due to smaller capital expenditures in Chiltern

Railways and negative exchange rate effects.

The number of employees increased slightly by 1.0 % in

comparison to December 31, 2012 due to new hires.

mAInlAnD euROpe lIne OF BuSIneSS

In the mainland europe line of business, development was

shaped first and foremost by the effects of new transport

contracts in Sweden (August 2012 and January 2013) and

the netherlands (December 2012). The takeover of veolia

eastern europe (may 2013) also had a positive effect on rev

e nues and profit of the line of business. Development was

dampened by a weak economic climate and by austerity

measures.

Mainland EuropeSelected key figures [ € million ] 2013 2012

Change

absolute %

Passengers rail (million) 96.0 54.9 + 41.1 + 74.9

Passengers bus (million) 657.3 483.9 + 173.4 + 35.8

Volume sold rail (million pkm) 2,102 1,515 + 587 + 38.7

Volume produced (million train km) 57.0 39.7 + 17.3 + 43.6

Volume produced (million bus km) 571.7 399.7 + 172.0 + 43.0

Total revenues 1,724 1,303 + 421 + 32.3


EBITDA adjusted 222 179 + 43 +24.0

EBIT adjusted 102 81 +21 +25.9


| Employees as of Dec 31 (FTE) 23,204 16,489 + 6,715 + 40.7

Significant increase in volume produced (rail: + 43.6%, bus:

+ 43.0 %) as a result of the incorporation of the first time full

year inclusion of transports in Sweden and the netherlands.

Growth in bus transport is also due to the acquisition of

veolia eastern europe. This also had a positive effect on the

development of revenues. Total revenues increased by 32.3 %

to € 1,724 million and external revenues by 32.9 % to € 1,660

million.

The expansion of business activities also led to a rise in

the cost of materials (+18.9 %) and personnel expenses

(+32.8 %). Overall, adjusted profit figures improved year on

year (adjusted eBITDA € +43 million to € 222 million, adjusted

eBIT € +21 million to € 102 million).

Gross capital expenditures remained significantly below

that of the previous year as a result of the nonrecurrence of

the extensive vehicle procurements for transports in Sweden

and the netherlands in the previous year.

The number of employees increased significantly (+40.7 %)

in comparison to December 31, 2012 due to the acquisition of

veolia eastern europe.

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External revenues per country [ % ] [ 2013 2012 ]

The 22.0Netherlands 16.6

Denmark 21.4 28.9

Sweden 20.5 18.3

Italy 11.6 16.3

Czech 5.9Republic 1.4

Spain 5.2 7.1

Portugal 3.8 5.3

Slovakia 3.0 2.7

Other 6.6 3.4

The development of the external revenues structure was pri

marily shaped by the full year of effectiveness of the trans

port services newly brought into operation in the course of

the previous year in the netherlands and in Sweden, as well

as the acquisition of veolia eastern europe. Because of this,

external revenues of the line of business as a whole increased

significantly in the relevant countries. As a result, Denmark

accounted for a smaller share of overall revenues, although

absolute revenues were at the same level as in the previous

year.

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transPort and Logistics

DB Schenker Rail business unitevenTs In 2013

Opening of the first construction phase of the

London Gateway deep sea port

The first construction phase of the london Gateway deep sea

port began in november 2013. europe’s largest logistics park

is located on the about 600hectare site. A significant suc

cess factor of the project is its connection to the hinterland.

About 30 % of transports should take place via rail. For this

pur pose, DB Schenker Rail uK has formed a strategic partner

ship with financier and port operator Dubai ports World (Dp

World). DB Schenker Rail uK can now carry socalled high

cube containers with a height of about 2.90 m for the first

time on the British rail network. In addition, the new ordering

and order management system “Anubis” has been introduced,

which makes it significantly easier for DB Schen ker Rail uK

customers to place and follow orders. Furthermore, DB Schen

ker Rail uK is responsible for the maintenance of the exten

sive track system in the port.

Rail freight transport in the United Arab Emirates

We have established a joint venture with etihad Rail for

operating rail freight transport services on the Arabian pen

insula. etihad Rail, which is responsible for railway develop

ment and operations in the united Arab emirates (uAe),

selected DB Schenker Rail as its partner for the joint ven

ture. DB Schenker Rail holds a 49 % stake in the joint com

pany, etihad Rail Operations DB llC. The first test runs took

place in the fall.

First freight train from Zhengzhou

By order of the city administration of Zhengzhou, DB Schen

ker was the logistics partner for the first freight train journey

from the central Chinese metropolis to Hamburg. The train

journey was organized by the port development company in

Zhengzhou. The train, loaded with 51 containers, arrived in

the transshipment station in HamburgBillwerder in August

2013. DB Schenker looked after all processes and logistics

services outside of China.

Refitting whisper brakes

Following the approval of LL brake shoe [ page 140 ] at the

begin ning of June 2013, the starting shot for the refitting of

our freight cars in our existing fleet was fired.

Action plan for Germany makes a significant contribution

We have been implementing the action plan for Germany

since late 2011 in order to meet the economic and structural

challenges that DB Schenker Rail faces in Germany. As was

the case in the previous year, the measures initiated as part

of the action plan also made a significant contribution to the

results in the year under review.

The major, lasting effects were achieved through the opti

mized management of our freight car fleet, the optimization

of the maintenance of freight cars and locomotives as well

as the targeted adaptation of the transport portfolio.

Other events

A DB Schenker Rail has been transporting BmW vehicle

components carbonfree with the Eco Plus [ page 136 ] offer

since August 2013.

A Since September 2013, DB Schenker Rail has been offer

ing a new service known as the “Bosporus Shuttle.” Ini

tially, three pairs of trains run between Germany and

Turkey each week. The number will be increased to five

at a later date. This will expand the current rail freight

transport system between Western europe and Turkey.

A After three years of construction, DB Schenker Rail has

opened a new workshop for traction units in nuremburg.

It is DB Schenker Rail’s largest workshop in Germany.

€ 24.4 million was invested in its construction.

A DB Schenker Rail and Audi Hungaria have concluded a

new threeyear contract. The scope of service includes the

operation of loading points, the reversal of incoming

trains and the train composition of outgoing trains from

the factory.

A DB Schenker Rail has expanded its partnership with Ford

in Romania. Ford models have been transported from

Germany to Romania and in the opposite direction since

October 2013. There are also shuttle services between the

nether lands and Romania as well as within Romania itself.

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DB Schenker Rail offers its customers attractive transport

solu tions throughout europe and is pursuing the vision of

being the first choice company for rail freight transport ser

vices. Our closemeshed international network with subsid

iaries in 15 european countries makes DB Schenker Rail the

leading company in european rail freight transport. Our cus

tomers recognize our network as being unique. We will also

continuously develop it further in future.

DB Schenker Rail is divided into three regions:

A Region West comprises DB Schenker Rail (uK), Great Brit

ain’s largest rail freight company, euro Cargo Rail France

(eCR), the number two in France, and Transfesa /eCR

Spain.

A Besides DB Schenker Rail Deutschland AG, the region

Cen tral has 11 further operating companies, includ ing

DB Schenker Rail nederland, DB Schenker Rail Scandi

navia, DB Schenker Rail Italia /nordCargo, DB Schen ker

Rail Schweiz, RBH logistics and mitteldeutsche eisen

bahn. Companies geared toward specific industries –

such as DB Schenker Rail Automotive, DB Schenker BTT,

DB Schenker nieten, DB Intermodal Services and TFG

Transfracht – are also part of this region.

A Region east comprises DB Schenker Rail polska (the num

ber four in poland), DB Schenker Rail Romania, DB Schen

ker Rail Bulgaria, DB Schenker Rail Hungaria and Railion

Russia Services.

In the economic ≈ dimension, we want to defend and build

upon our position as a profitable, european market leader

with a strong european network. It is important to increase

profitability in order to be able to invest more strongly in

future. Intelligent pricing, cost flexibilization and ongoing

productivity increases in all processes are crucial. In order to

significantly improve profitability and quality, DB Schen ker

Rail is extensively taking the business model in a new direc

tion. Network rail [ page 124 ], the implementation of which

began in 2012, will make the production system more stable

and efficient and will better consolidate

flows. This approach is supported by the IT masterplan,

which will harmonize the IT landscape of european compa

nies and create a standardized process landscape.

In the social † dimension, we want to offer attractive work ing

conditions to our employees in all age groups, in order to

attract qualified employees to our team and connect with

them. In the year 2020, we want to be a top employer with a

common, european company culture. employee satisfaction

should increase by a measurable extent over the coming

years. In addition to the followup workshops to a Group

wide employee survey, DB Schenker Rail has initiated, among

other things, the “Step by Step” initiative for the ongoing

improvement of employee satisfaction. In order to make the

international network stronger through a strong internatio nal

team, the international “euroTRAIl” trainee program as well

as the “people exchange program” have been introduced to

promote job rotation.

In the environmental ¥ dimension, we wish to reinforce rail

freight transport as being an environmentally friendly mode

of transport. We combine sustainable transport solutions

and are modernizing our fleet, which should lead to a con

siderable decrease in specific CO₂ emissions and rail noise

being halved by the year 2020. By 2020, we aim to have fitted

our entire German fleet of cars with noisereducing brake

blocks. At the same time, we are committed to climate pro

tection and air quality control. By 2020, we want to have

reduced our specific energy consumption by 19 %, taking

the year 2006 as the base year. new shunting locomotives

are fitted with soot particle filters, and we are also urging

the use of hybrid technology.

developmenT In The year under revIew

The development of the DB Schenker Rail business unit was

significantly influenced by a decline in transport demand as

a result of the economic situation, an increase in factor costs

as well as the intensification of the competitive environ

ment. Thanks to the positive effects of the action plan for

Germany, the marked decline in volumes could be compen

sated for profitwise. Additional damage from the flooding

in Germany could not be completely prevented.

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Punctuality declined slightly

Punctuality rail freight transport [ % ] 2013 2012 2011

| Punctuality (15 minutes) in Europe 68.3 69.9 68.0

The punctuality of our trains in rail freight transport mea

sured in europe was less than the previous year in the year

under review. This generally resulted from the effects of the

floods in Germany as well as intensive construction work. We

are continuously working on further improving the quality

of services, for example through international train tracking

as part of european operations management.

Customer satisfaction stable


| DB Schenker Rail 63 63 62

Customer satisfaction is an important success factor for

DB Schen ker Rail. As was the case last year, the SI was 63 in

the year under review. In particular, improvements in vehicle

availability, the high quality of order placing and billing were

valued by customers. We were able to identify the optimiza

tion of our transportrelated information as an area in which

we can further increase customer satisfaction, which we are

working towards through a number of measures.

Business development diminished

DB Schenker RailSelected key figures [ € million ] 2013 2012

Change

absolute %

Freight carried (million t) 390.1 398.7 – 8.6 –2.2

Volume sold (million tkm) 104,259 105,894 – 1,635 – 1.5

Volume produced (million train-path km) 196.0 203.1 –7.1 – 3.5

Capacity utilization (t per train) 531.9 521.4 + 10.5 +2.0

Total revenues 4,843 4,926 – 83 – 1.7

External revenues 4,495 4,597 – 102 –2.2


EBIT adjusted 57 87 – 30 – 34.5


| Employees as of Dec 31 (FTE) 30,925 31,770 – 845 –2.7

The economic climate and market situation in europe re

mained an obstacle to rail freight transport in the year under

review and negatively affected the development of perfor

mance in the business unit. Within this context, DB Schenker

Rail reported a downturn in the volume of freight carried

(–2.2 %), the volume sold (–1.5 %) and the volume produced

(–3.5 %). We were able to increase capacity utilization

(+2.0 %), primarily as a result of measures introduced to

in crease efficiency.

As a result of the decline in performance, total revenues

fell by € 83 million to € 4,843 million. The first fullyear inclu

sion of Transfracht and the development of eCR, which has

enabled DB Schenker Rail to increase its market share in the

French rail freight transport market, had a positive effect.

external revenue also declined (€ –102 million to € 4,495 mil

lion). Other operating income increased by 2.8 % as a result

of higher income generated from the sale of real estate in

Great Britain, among other things.

The cost of materials decreased by 2.8 % as a result of a

reduction in the volume produced as well as the measures

introduced as part of the action plan for Germany. personnel

expenses increased compared to the previous year due to

wage increases (+1.8 %).

Overall, the flood in Germany in particular led to a decline

in operating profit figures (adjusted eBITDA decreased by

€ 37 million to € 352 million, and adjusted eBIT decreased

by € 30 million to € 57 million).

The gross capital expenditures declined significantly

(– 50.9 %). This is due to a very high level of capital expen

diture in the previous year (extensive locomotive procure

ments in Germany as well as the refinancing of a large lease

contract in Great Britain). The focus of the capital expendi

ture in the year under review was on the modernization of

shunting locomotives as well as bogie flat cars, slidingwall

wagons and open doubledeck cars for transporting private

vehicles.

The number of employees as of December 31, 2013 was

down 2.7 % on the previous year. essentially due to restructu r

ing and optimization measures in poland and slight adjust

ments in headcount in line with the reduced performance.

This was partially offset by the business development in

France and Southeast europe.

ReGIOn CenTRAl

The economic development of the Central region was marked

by a weak economic environment, the further intensification

of competition, particularly in combined transport, as well

as the effects of floods in Germany.

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Region CentralSelected key figures[ € million ] 2013 2012

Change

absolute %

Freight carried (million t) 268.6 291.7 –23.1 –7.9

Volume sold (million tkm) 81,959 85,709 – 3,750 – 4.4

Volume produced (million train-path km) 154.9 164.3 – 9.4 – 5.7

Total revenues 4,665 4,688 –23 – 0.5

External revenues 3,552 3,580 –28 – 0.8

EBITDA adjusted 269 294 –25 – 8.5

EBIT adjusted 47 71 –24 – 33.8


| Employees as of Dec 31 (FTE) 20,498 20,963 – 465 –2.2

The quantity of freight carried (–7.9 %) and the volume sold

(– 4.4%) decreased in the year under review. The weak econ

omy in core sectors such as the steel industry led to a decline

in quantity in the fixcostintense single wagon transport. Fur

ther factor cost increases and the intensification of com peti

tion led to a decline in market share being recorded in low

margin block train transport. The volume produced de clined

by 5.7 %, impacted by the measures implemented to further

increase train utilization.

The development in revenues was better than the devel

opment of performance. This was due to the firsttime full

year inclusion of Transfracht as well as price adjustments in

line with the development of costs. Other operating income

decreased, among others as a result of lower disposals from

property, plant and equipment.

Cost of materials sunk slightly in the year under review

(– 0.9 %). This was a result of lower maintenance expenses

as well as quantitydriven lower trainpath costs, and lower

energy costs as a result of increased energy efficiency. The

firsttime fullyear inclusion of Transfracht as well as

increased factor costs had a dampening effect. Despite

a decline in the number of employees (–2.2 %), personnel

expenses increased as a result of wage increases (+1.1 %).

As a result, operating profit figures decreased, with adjust

ed eBITDA decreasing by € 25 million to € 269 million and

adjusted eBIT down € 24 million to € 47 million. The main

reason for this were hindrances caused by the flood.

Gross capital expenditures (– 48.4%) were significantly

below the value of those of the previous years. This is due

in par ticu lar to a high previous year value for the procure

ment of shunting locomotives as well as the adaptation

of freight car capital expenditures to changed economic

conditions.

The number of employees was lower than the previous year

(–2.2 %), which was due to adjustments in line with the

reduced performance.

ReGIOn WeST

The development in region West was predominantly positive

in the year under review. positive effects resulted from

increased coal demand in Great Britain, the takeover of trac

tion services in Spain as well as an increase in transports in

France. Adverse effects resulted from the poor development

in automobile transport in Spain and strikes in France.

Region WestSelected key figures [ € million ] 2013 2012

Change

absolute %

Freight carried (million t) 96.5 83.1 + 13.4 + 16.1

Volume sold (million tkm) 18,040 16,435 + 1,605 + 9.8

Volume produced (million train-path km) 34.6 33.5 + 1.1 + 3.3

Total revenues 880 860 +20 +2.3

External revenues 772 755 + 17 +2.3


EBIT adjusted 62 53 + 9 + 17.0

Gross capital expenditures 33 112 –79 –70.5

| Employees as of Dec 31 (FTE) 5,172 4,946 +226 + 4.6

In the region West, the quantity of freight carried (+16.1 %)

as well as volume sold (+ 9.8 %) experienced positive devel

op ment. This primarily resulted from increased iron, coal and

steel transports in Great Britain, business expansion in France

as well as expanded traction services in Spain. The vol ume

pro duced also increased (+3.3 %).

The development of performance was reflected in the

development of revenues. Total revenues and external reve

nues both increased by 2.3 %. Revenue growth in France and

Spain was partly compensated for by exchange rate effects.

Other operating income increased, including as a result of

the sale of real estate in Great Britain.

The cost of materials went up slightly (+3.1 %) in the

period under review as a result of higher costs for trainpath

utilization and transport services purchased. The person

nel expenses grew due to increased employee numbers in

Great Britain and France (+ 5.3 %). Other operating income

increased due to the discontinuation of a positive onetime

effect from the previous year. Depreciation reduced, due

to a lower property, plant and equipment in Great Britain,

among other things.

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Overall, adjusted eBITDA increased by € 5 million to € 120

million and adjusted eBIT by € 9 million to € 62 million.

The gross capital expenditures reduced significantly due

to an effect from the previous year in the context of the

refinancing of a major lease contract for locomotives.

The number of employees grew due to an increase in

personnel in France and new hires in Great Britain.

ReGIOn eAST

During the year under review, the region east was challenged

in particular by the effects of increasing competition, as well

as the decline of the coal market in poland. For this reason,

restructuring measures were introduced in poland in order to

increase competitiveness. The expansion of business activit ies

in Southeast europe had a positive effect in the period under

review.

Region EastSelected key figures [ € million ] 2013 2012

Change

absolute %

Freight carried (million t) 61.3 63.7 –2.4 – 3.8

Volume sold (million tkm) 4,259 3,749 + 510 + 13.6

Volume produced (million train-path km) 6.5 5.3 + 1.2 +22.6

Total revenues 241 277 – 36 – 13.0

External revenues 171 188 – 17 – 9.0


EBIT adjusted 10 8 +2 +25.0



The significant increase in volume sold and volume produced

(+13.6% and +22.6% respectively) in the year under review

was a result of the positive development in transport business

in Hungary, Romania and Bulgaria in particular. The reduc

tion in freight carried, however, was a result primarily of the

decline in volume in the siding business in poland (–3.8 %).

external revenues was 9 % lower than the previous year’s

value. This was due to decreased revenue as a result of price

and volume factors, in particular due to increased competi

tion intensity in the track linkup and sand mining business

in poland. This overcompensated for the growth in transport

and classification yards in Romania and Bulgaria. The total

revenue was significantly lower than that of the previous

year due to the merger of companies in poland (–13 %). Other

operating income reduced, partly due to the cessation of one

off effects in poland in the previous year, as well as a decline

in other services provided for third parties in Romania.

Cost of materials adjusted by a consolidation effect from

the merger of companies in poland was higher than the level

of the previous year, and thus follows the increase in volume

produced. The reduction in personnel expenses was a result

of restructuring measures in poland. Other operating expenses

were lower than in the previous year, partly as a result of the

decreased leasing of locomotives.

Adjusted eBITDA decreased by € 1 million to € 24 million,

and adjusted eBIT improved by € 2 million to € 10 million.

Gross capital expenditures were again shaped by the

ex ten sive modernization measures for the locomotive fleet.

Gross capital expenditure decreased slightly due to the deliv

ery dates for locomotives.

The number of employees decreased by 11.7 % as of De cem

ber 31, 2013, in particular due to restructuring and optimiza

tion measures in poland.

DB Schenker Logistics business unitevenTs In 2013

Expansion of the global network

lOGISTICS CenTeRS AnD SITeS

In the year under review, DB Schenker logistics opened up

new logistics centers in Germany, China, Japan, Kenya, Korea,

the netherlands and the ukraine, among others. In addition,

new sites were opened in India and other places.

A In Kunshan, located near Shanghai, the new 47,000 m²

distribution center for KOne, a Finnish customer and one

of the world’s leading providers of complete solutions for

elevators and escalators, started operation in February

2013.

A Together with customers, we opened a new logistics center

in February 2013 at the erfurter Kreuz business park in

Ichtershausen, located near Arnstadt /Germany.

A We opened a new office in Thiruvananthapuram, the cap

ital of the region of Kerala, India. DB Schenker logistics

is now present with over 37 locations in India.

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A We have expanded our service portfolio in the ukraine

and rented additional capacity in a new multicustomer

warehouse. The new site in Belogorodka has a total area

of 45,000 m².

A In July 2013 in Korea we started operation at a 6,100 m²

logistics center in Gunpo, near Seoul, which is particularly

focused on logistics for healthcare and pharmaceutical

companies.

A In Baraki, only 25 km from the center of Tokyo, we opened

our largest logistics center to date in Japan. The Baraki

lo gis tics Center, with a total area of 33,000 m², is used by

various customers, primarily from the electronics industry.

A We opened a new facility for multiple customers from the

areas of industry, electronics, healthcare and consumer

goods in Kenya in October 2013. The site on the major

connecting road between the port of mombasa and the

east African hinterland is only 5 km away from Jomo Ken

yatta International Airport. The modern logistics cen ter

comprises a 6,200 m² warehouse building and a 5,600 m²

openair site.

A A new terminal [ page 137 ] was built in Rudná near prague

in the Czech Republic for € 23.5 million. The new transport

hub has a total area of 90,800 m².

A In Tilburg in the netherlands, we commenced operation

at a logistics center especially for customers from the

health services industry in november 2013. The facility was

de sign ed as a hub for services in europe. The 11,500 m²

facil ity upholds the latest safety, quality and environ

men tal standards for products from the healthcare sector.

A A new logistics center was constructed in the nuremburg

port for € 28 million. We have been supplying extensive

logistics services on the 54,000 m² site since early 2014.

CApITAl eXpenDITuReS

A We have bolstered DB Schenker’s global network through

Schenker Panama [ page 72 ].

A With Schenker Logistics L.L.C. [ page 72 ], Abu Dhabi/united

Arab emirates, DB Schenker is expanding its presence in

the middle east.

A We have founded a national organization in laos. The new

Schenker (lao) Sole Co., ltd. will support customers in

the region with logistics services.

Investigations against companies in the

freight forwarding sector

Cartel authorities have been investigating companies in the

freight forwarding sector worldwide since the fall of 2007.

Following the settlement of the antitrust suit in the uSA

in December 2011, the eu Commission issued fine notices

against several freight companies, including DB AG, Schen

ker AG and BAX Global Inc., on march 28, 2012. An appeal

was submitted to the Court of Justice of the european union

against these fine notices, which had imposed fines totaling

€ 34.9 million, on June 12, 2012. It is not expected that all of

the cartel authority investigations will be completed before

the end of 2014.

The european Commission has also initiated proceed

ings against companies in the freight forwarding sector due

to suspected anticompetitive collusion regarding rail forward

ing services to Southeast europe and conducted searches at

DB Schenker’s locations in vienna and Athens on June 18,

2013. We are cooperating with the european Commission on

clarifying the matter.

Other events

A Spirit AeroSystems – one of the world’s largest designers

and manufacturers of components for civil, military and

business jets – commissioned DB Schenker logistics

with the operation of its distribution center for its plant

in Tulsa/uSA.

A Swarovski, the world’s leading manufacturer of cut crystal,

real and synthetic gemstones, decided to use DB Schenker

at its first regional distribution center in Singapore.

A DB Schenker logistics in Brazil has been appointed as

DAF Trucks preferred logistics service provider.

A vestas, the operator of wind energy facilities, has select

ed DB Schenker as its logistics service provider through

out europe.

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The DB Schenker logistics business unit holds a leading mar

ket position in every market segment – european land trans

port, air and ocean freight, as well as contract logistics. Our

vision is to be the leading integrated transport and logistics

service provider with a global reach. For the coming years, we

aim to strengthen and expand our leading market positions.

In the economic ≈ dimension, DB Schenker logistics has

the goal of growing profitably and increasing step by step

and sustainably its eBIT margin. We strive towards growing

more strongly than the market in all segments and holding

leading market positions. In pursuing this goal, we are fur

ther expanding and concentrating our global network – par

ticularly in emerging markets. We have placed particular

focus on the expansion of our global IT landscape, which

optimizes internal processes and guarantees greater trans

parency for customers. We are modernizing our processes

worldwide, with the goal of being able to respond to market

demands through standardization and industrialization.

With the ongoing adaptation of supply chains in line with cus

tomer requirements, we create added value and strengthen

relationships with our customers. We will commit ourselves

more strongly to the further expansion of integrated and

innovative solutions for our customers’ entire logistics chain.

We want to be a proactive, equal partner for our customers,

with the joint objective of creating added value.

The sustainable growth of DB Schenker logistics is based

on satisfied employees and a consistent management phi

losophy. DB Schenker claims to be the top logistics employer

when it comes to the social † dimension. In order to achieve

this, we are further expanding our individual and interna

tional career development programs. This is underpinned by

our strategic personnel planning. moreover, we offer modern

working conditions, a familyfriendly working environment

and diversity. We will further strengthen our Schenker cul

ture, which is marked by mutual trust, entrepreneurship and

internationality.

In the environmental ¥ dimension, DB Schenker logistics

aims to be the ecopioneer in the transport and logistics

industry by the year 2020. We will actively build upon our

extensive expertise in green logistics. With “eco procure

ment,” we place the focus on the procurement of CO₂ friend ly

services with our carriers and subservice providers – our

preferred carrier portfolio helps us here. With our “eco Oper

ations,” we determine, evaluate and increase the energy and

material efficiency of our internal processes. As part of “eco

Transparency,” we provide instruments, which we can use to

more precisely calculate CO₂ emissions along the supply

chain. In addition, the publication of data leads to increased

transparency. Through “eco Consulting,” we offer our custom

ers consultation services, through which they can improve

their carbon footprint.


Overall, the general trends recorded in the DB Schenker

logistics business unit in the previous year have continued.

However, this development was characterized by intense

competition as well as a lack of dynamism in the global econ

omy. This is also reflected in the development of our perfor

mance. The most dynamic growth continues to be seen in our

contract logistics business.

High customer satisfaction

The first customer satisfaction study in DB Schenker logistics’

global network kicked off in summer 2013. The survey was

conducted in 45 countries. The global satisfaction index (SI)

has a value of 74, which is a very good value for the sector.

very consistent levels have therefore been able to be

achieved in each country. Of particular note here is the good

relationship we have with our customers, that is reflected in

the recommendation and repeat business rates, among other

things. Based on the results, areas of action were identi fied

and corresponding measures were introduced. There is poten

tial for improvement in the area of proactive information, for

example. The next customer satisfaction study will be con

ducted in 2015.

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Restricted business development

Schenker LogisticsSelected key figures [ € million ] 2013 2012

Change

absolute %




Total revenues 14,857 15,389 – 532 – 3.5


Gross profit margin (%) 32.2 31.5 – –


EBIT adjusted 335 418 – 83 – 19.9

EBIT margin (adjusted ) (%) 2.3 2.7 – –



The development of volume in the individual lines of busi

ness varied during the year under review but was generally

weak:

A The volume of shipments in european land transport

increased slightly, by 0.2 %. This was driven by growth in

international land transport as well as parcel carriage,

which was almost entirely offset by the slight slowdown

in national land transport.

A The volume of air freight decreased by 0.3 %, which was

mainly due to development on the transatlantic and trans

pacific routes. In contrast, transports from Asia to europe,

as well as to and from latin America and the middle east,

posted increases.

A The volume of ocean freight declined by 0.7 %. positive

developments were reported, particularly in transpacific

connections. This was compensated for by a decrease in

volume through Asia/europe connections as well as con

nections within europe and Asia.

The weak development of performance led to a drop in rev

e nues (–3.5 %). A slight increase in revenue in region Cen

tral was overcompensated for by decreases in revenue in the

other regions. The most significant declines were seen in the

Asia /pacific region.

The cost of materials fell in the year under review, which

was mainly attributable to a decline in purchased transport ser

vices. personnel expenses were higher, driven by the higher

number of employees in contract logistics and increases in

labor costs.

Due to the decrease in costs for purchased services, which

fell faster than revenues, the gross profit margin rose in the

year under review from 31.5 % in the previous year to 32.2 %.

Due to the development of revenue, the gross profit and

the operating profit figures declined. Adjusted eBITDA de

creased by € 91 million to € 518 million, and adjusted eBIT

rose by € 83 million to € 335 million.

Gross capital expenditures were higher year on year,

with a focus on europe. The increase resulted primarily from

devel opment in the Asia/pacific region as well as Africa. The

largest individual projects were new construction projects

and the expansion of freight forwarding facilities and termi

nals in Finland, Sweden, Austria, Switzerland, Singapore, the

Czech Republic and Germany; other major capital expendi

tures were in projects to introduce new IT systems.

The negative business development in land transport as

well as in air and ocean freight was reflected in a decrease in

the number of employees as of December 31, 2013.

euROpeAn lAnD TRAnSpORT lIne OF BuSIneSS

Despite the weak growth in the european land transport

market, freight rates increased slightly in the year under

review. However, in a market climate that continues to be

very competitive, we were only able to impose price increases

on our customers to a limited extent. We focused on devel

oping and optimizing our network, as well as on our core

products: in addition, we are focusing on our core products,

system services and direct transport services.

European land transport Selected key figures[ € million ] 2013 2012

Change

absolute %


Total revenues 6,370 6,415 – 45 – 0.7


EBITDA adjusted 187 240 – 53 –22.1

EBIT adjusted 92 141 – 49 – 34.8


volumes improved slightly in comparison to the previous year

(+ 0.2 %). national land transport decreased by 2 %, which

was offset by the volume development in international land

transport and the parcel carriage (each +3 %). Due to a

changed shipment structure, the total revenue (– 0.7 %) and

external revenue (– 0.5 %) decreased in the year under review.

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In terms of expenses, the changes in the shipment structure,

among other things, led to a decline in purchased transport

services and lower fuel costs. The freight rate development

was shaped by the strong competitive pressure with high

price sensitivity among customers. By contrast, personnel

expenses rose due to wage increases.

The operative profit figures also declined, driven by

negative revenue development and stable development of

expenses. Adjusted eBITDA declined in total by € 53 million

to € 187 million, and adjusted eBIT fell by € 49 million to € 92

million.

The number of employees fell slightly year on year as of

December 31, 2013 due to lower volumes.

AIR AnD OCeAn FReIGHT lIne OF BuSIneSS

The development of the air and ocean freight line of business

was mixed during the year under review. The weak global

economy slowed the development of the air freight market,

while low demand and an oversupply in capacity led to low

freight rates in both markets. In order to ensure the con

tinued success of our global air and ocean freight opera

tions, we expanded our international network during the

year under review. A considerable negative effect on profits

was caused by the expiry of a major project.

Air and ocean freightSelected key figures[ € million ] 2013 2012

Change

absolute %



Total revenues 6,647 7,227 – 580 – 8.0


EBITDA adjusted 225 296 –71 –24.0

EBIT adjusted 192 254 – 62 –24.4

| Employees as of Dec 31 (FTE) 20,642 20,883 –241 – 1.2

The individual products in the air and ocean freight line

of busi ness recorded weak performance in the year under

review. While the volume of ocean freight declined more

sharply year on year, the volume of air freight declined only

slightly.

Freight rates [ page 99 f. ] were at a low level. This develop

ment was also reflected in their respective contributions to

revenue growth. The development in project business was

negative due to the expiry of large projects. Total revenues

and external revenues both decreased by 8.0 %.

In terms of expenses, the effects of decline in the case of

purchased transport services were generally positive due to

quantity and price effects as well as slightly reduced per

sonnel expenses.

Adjusted eBITDA reduced by € 71 million to € 225 million,

and adjusted eBIT rose by € 62 million to € 192 million.

The number of employees as of December 31, 2013 was

down 1.2 % on the previous year.

COnTRACT lOGISTICS/SCm lIne OF BuSIneSS

The contract logistics/SCm market sustained momentum

throughout the year under review. The development of both

our existing and our new business operations was very pleas

ing. In the fastestgrowing line of business within the busi

ness unit, the focus of our business has been on increasing

our capacity. We have increased our distribution and ware

housing capacity in Japan, among other locations.

Contract logistics /SCMSelected key figures[ € million ] 2013 2012

Change

absolute %

Total revenues 1,841 1,750 + 91 + 5.2



EBIT adjusted 77 47 + 30 + 63.8


The development of revenues in the contract logistics/SCm

line of business remained positive in the year under review.

Among other things, we recorded markedly good perfor

mance for existing and new customer business as well as

improved automotive business. Total revenues and external

revenues (both + 5.2 %) developed to our satisfaction.

Through the business expansion, cost of materials (par

ticularly in the Central and Asia /pacific regions) as well as

personnel expenses also increased due to the higher number

of employees and wage increases. Depreciation rose as a

result of higher capital expenditures.

Operating profit figures increased in the year under

review, the adjusted eBITDA increased by € 33 million to

€ 124 million, while adjusted eBIT improved by € 30 million to

€ 77 million.

The ongoing dynamic business development is reflected

in a further increase in the number of employees as of Decem

ber 31, 2013.

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services

DB Services Business UnitevenTs In 2013

Restructuring measures initiated in vehicle maintenance

DB vehicle maintenance expects a considerable decline in

production hours, with about 20 % less by 2018 compared to

2012. For this reason, personnel and structural countermea

sures have been in development since the fall of 2013. The

year under review even had a noticeable decline in orders,

which led to shorttime work and personnel adjustments.

Other events in 2013

A In October 2013, we already had 250,000 customers using

our Flinkster mobility service [ page 139 f. ]. By the end of the

year under review, this number had increased to about

253,000 customers.


The DB Services business unit contributes to the seamless

provision of mobility and logistics services in the areas of

vehicle maintenance, information technology, communica

tions technology, facility management, security and fleet

management. In the year 2020, DB Services wants to be the

preferred service partner of DB Group in its core markets as

well as for customers outside DB Group.

As a reliable added value partner, the group of service

pro viders ensures competitive advantages for DB Group in

the economic ≈ dimension. This is particularly true due to

exten sive availability, the flexible provision of services,

taking advantage of many years of experience with custom

ers’ property and processes as well as planning security

regarding costs and capacities.

In the social † dimension, the strategic “workforce 2020”

human resources program ensures demographic prepared

ness and employer attractiveness in the business unit. In addi

tion, it makes an active contribution to safeguarding employ

ment in DB Group.

In the environmental ¥ dimension, our trade and our pro

duction are shaped by environmental awareness. The goal is

to further improve the CO₂ efficiency of our services. In addi

tion, the DB Services business unit advises its customers on

the environmental use of the services and products it offers

along its entire value creation chain.


Restricted business development

DB ServicesSelected key figures [ € million ] 2013 2012

Change

absolute %

Total revenues 1) 3,184 3,264 – 80 –2.5

External revenues 2) 283 286 – 3 – 1.0


EBIT adjusted 29 84 – 55 – 65.5

Gross capital expenditures 248 268 –20 –7.5


1) Previous year’s figure adjusted for effects (€ + 1,766 million) from the reclassification of other operating income to revenues.

2) Previous year’s figure adjusted for effects (€ + 161 million) from the reclassification of other operating income to revenues.

The development of the DB Services business unit mainly

reflects the supportive nature of the business unit for custo

mers within DB Group. Internal revenues of € 2,901 million

continue to account for the majority of total revenues. These

fell by 2.6 % during the year under review as a result of a

decline in demand for maintenance of rolling stock.

The cost of materials (– 8.9 %) decreased due to the

decline in performance, lower fuel prices and the intraGroup

transfer of the GSmR business (Global System for mobile

Rail) to DB netz. personnel expenses rose (+ 4.1 %) as a

result of wage increases and onetime payments. Deprecia

tion was below the level of the previous year and primarily

affected IT and motor vehicles.

In total, there was a declined in the adjusted eBITDA

(€ 42 million) as well as the adjusted eBIT (€ 55 million) to

€ 211 million and € 29 million respectively as a result of a

decline in demand in vehicle maintenance and higher per

sonnel expenses.

Gross capital expenditures decreased as a result of lower

capital expenditure for replacement and additional capital

expenditures in hardware and software at DB Systel as well

as due to a decline in demand in the maintenance of rolling

stock. The DB fleet management is making higher capital

expenditures in road vehicles.

The total number of employees fell slightly as of Decem

ber 31, 2013 compared to December 31, 2012, primarily as a

result of the completion of shortterm projects as well as

adapting to the declining order situation.

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infrastructure

Flood damage rectifiedFlooding caused considerable damage to the rail infrastruc

ture in June 2013. To restore the infrastructure, the German

Federal Government has already declared that it is ready to

finance the rectification of flood damage. The corresponding

financing agreement comprises a volume of up to € 100 mil

lion and also considers the financing of expenses. Alongside

the Federal Government assuming the costs for flood damage,

we are primarily making insurance claims for flood damage

which occurred to building projects.

With the return to service of the Hanover–Berlin high

speed line at the start of november 2013, all operational dis

ruptions had been rectified.

Adverse effects due to mining damage in the area of the Essen central stationThere were significant adverse effects for rail transport in

the essen metropolitan area between the end of november

2013 and midDecember 2013. In the case of work directly

next to the track, a mining tunnel was discovered running

under the tracks, which was classified as being at risk of

potential collapse following further investigation. The trains

had to travel considerably more slowly for safety reasons.

The necessary renovation work was carried out in collabora

tion with the local authorities.

The timetable concepts were coordinated with the rail

ways affected and adapted to the respective construction

progress. In total, 580 trains were cancelled in the period

bet ween november 20 to December 19, 2013.

potential claims for compensation for damage are

being reviewed.

Developments in the Stuttgart-Ulm projectThe Supervisory Board of DB AG ratified the continued con

struction of the Stuttgart 21 project at an extraordinary

meeting on march 5, 2013. The Supervisory Board approved

the proposal by the management Board of DB AG to increase

funding for Stuttgart 21 by € 2 billion from € 4.526 billion to

a total of € 6.526 billion. This € 2 billion includes increases in

foreseeable costs as well as other potential costs.

The Stuttgart 21 and Wendlingenulm new construction

line projects have been organized under a management com

pany since September 1, 2013 (DB projekt Stuttgart–ulm

GmbH), which is part of the Infrastructure Board division

and is a 100 % subsidiary of DB AG. The CeO will report directly

to the management Board of DB AG. In addition, a board of

experts was appointed to advise the management. Its first

meeting was held in november. The company and the advi

sory board have been set up to improve the structures of the

project, simplify processes and strengthen risk and contract

management.

To date, about 40 % of the construction volume has been

assigned and all planning documents have been drafted.

The main construction work of the Stuttgartulm projects is

becoming more and more visible. The facility for the ground

water management based on the existing approval has

been in operation in the area of the central station in Septem

ber 2013. The SBahn (metro) construction site for the u12

is relat ed to this. In the central station, the opening of the

concourse concludes the primary reconstruction of the plat

forms. The shell of the technical building of the future sta

tion has been completed, and the technical installation is

currently in progress.

The preparation work for the socalled feeding tracks,

the underground rail system to the new central station, have

been completed as far as possible. The preparatory tunneling

in Stuttgart and Wangen was finished, and the tunneling

work towards untertürkheim began on December 4, 2013.

preparatory measures are full speed ahead at the Filder

portal. The starting position of the tunnel boring machine

has been established over an area close to 3 hectares in size,

and the machine will dig one of the longest train tunnels in

Germany starting from next summer: the 9.5 km long Filder

tunnel in the direction of Stuttgart central station.

The main work on the Wendlingen–ulm new construction

line project is ongoing. Boring of 2 km of tunnel has already

been started in Albaufstieg. The opening of the Steinbühl

tunnel was celebrated in July 2013.

The Widderstall tunnel, the Filstal bridge, the portal to

the Albabstieg tunnel in ulm central station as well as the

new construction line along the A8 to the Alb plateau are

under construction.

LuFV quality targets once again metA financing instrument was introduced in 2009 through the

Service and Financing Agreement (leistungs und Finanzier

ungsvereinbarung; luFv), which connects the use of funding

from the Federal Republic of Germany and the rail infrastruc

ture companies (RICs) of DB Group with the contractually stip

ulated quality criteria for the infrastructure. In total, seven key

K


quality indicators subject to sanctions as well as other assess

ment parameters were established as a basis for the infra

structure quality status reports to be submitted annually,

which are to be used to describe and assess in detail the state

and development of the existing rail infrastructure. We once

again met the agreed contractual targets in the year under

review and documented that in the Infrastructure State and

Development Report (Infrastrukturzustands und entwick

lungsbericht) 2013 in accordance with the agreement.

The luFv was initially limited to the end of 2013. We

began negotiations with the Federal Government in the

second half of 2011 concerning a followup agreement.

As these negotiations to date, particularly with regard to

the allocation of funds necessary for the maintenance of

the existing network, have not been able to be concluded,

an extension to the existing contract was agreed upon at

the beginning of September 2013. This is accompanied by

the agreement that in 2013 and 2014 an additional up to

€ 250 million in Federal funds will be made available for the

existing network, which possibly could not be used for mea

sures in the requirement plan for the Federal rail tracks. In

the year 2013, this restructuring in the amount of € 250 mil

lion was used for the benefit of the existing network.

negotiations for a followup agreement were entered into

again at the start of January 2014, directly following the con

stitution of the new Federal Government. The communal goal

is to have a new luFv in force from January 2015, through

which the maintenance and sustainable development of the

rail infrastructure in Germany can be ensured.

Regulations regarding infrastructure financing are still pendingThe coalition agreement concluded in november 2013 be

t ween the CDu, CSu and SpD recognizes that the traffic

routes have been structurally underfinanced for many years

and that the planning and financing should be reformed

and given a new, sustainably reliable and efficient basis. On

the relationship between maintenance and expansion, the

coalition agreement states that, after decades of expanding

the network, preservation should be prioritized and that

the highest priority should therefore be “maintenance and

renovation before expansion and new construction.” Accord

ing to the coalition agreement, the Federal funds for trans

port infrastructure will be increased in the years 2014 to 2017

by a total of € 5 billion.

The statements in the coalition agreement are expressly

supported by DB Group. In order to ensure the quality and

availability of the existing network, more funds need to be

appropriated for maintenance and capital expenditures.

Due to the reduced expected result and returns for the infra

structure companies, the infrastructure capital expenditures

financed by own funds must be reduced to a commercially

acceptable level in order not to jeopardize the value of assets

balanced in the infrastructure.

The budget determinations [ page 193 ] as to what quantity

will be used for rail infrastructure had not yet been deter

mined at the time of the 2013 Annual Financial Statements

being drawn up.

DB Netze Track business unitevenTs In 2013

Staff shortages at the interlocking in Mainz

At the interlocking at mainz central station there was lim

ited staffing as a result of staff shortages in conjunction with

cases of sick leave on the part of traffic controllers during the

summer vacation season in August 2013. This meant that ad

just ments had to be made to the operating schedule, which

in turn led to rerouting measures and to some extent even

the cancellation of some train services. In order to minimize

the impact on passengers to the greatest possible extent, we

implemented a number of measures aimed at maintaining

cus tomer goodwill and also stabilizing the situation as quickly

as possible for the affected passengers. We are currently

training nine additional employees who have gradually been

deployed at the interlocking in mainz since the fall of 2013.

At the beginning of 2013, DB netze Track employed more

than 12,000 traffic controllers nationwide. With a view to

setting up additional buffers, we also increased the number

of traffic controllers to be hired by 340 to a total of 600 in the

year under review. moreover, 360 young people began their

training as traffic controllers in September – representing an

increase of 110 over the previous year – while further mea

sures launched since August 2013 include the introduction

of binding guidelines with respect to multiple qualifications

which enable flexible staffing between neighboring inter

lockings and improvements to the early warning system for

the detection of staff shortages. We are pressing ahead with

our medium and longterm recruitment and training strategy,

which is also intended to address the existing deficiencies in

the age structure of our employees, particularly as regards

our operational staff.

K


The ongoing personnel planning process [ page 128 ] within

DB Group has been reviewed in the wake of the events

in mainz.

Conclusion of rail cartel proceedings

On July 11, 2013, the Federal Cartel Office imposed a fine of

€ 10 million against moravia Steel Deutschland GmbH for

anticompetitive collusion in connection with the delivery of

tracks to DB Group. The Federal Cartel Office had already

imposed fines totaling € 124.5 million in July 2012 against

group companies belonging to ThyssenKrupp, voestalpine

and vossloh that were also involved in the cartel. The move

completed legal proceedings against manufacturers and

suppliers of tracks in connection with anticompetitive col

lusion at the expense of DB Group.

In December 2012, DB Group had filed a civil lawsuit

against group companies belonging to ThyssenKrupp, voss

loh and moravia Steel as well as against the former owners

of vossloh subsidiary Stahlberg Roensch GmbH with the

District Court (landgericht) in Frankfurt am main in connec

tion with collusion. We reached an agreement with voest

alpine effective April 30, 2013, which stipulates the payment

of a high doubledigit million amount of compensation for

damage caused by the cartel in connection with direct deliv

eries of tracks and switch blades. The funding bodies will

receive a percentage of the damages in proportion to the

subsidies granted by them. In november 2013, we concluded

a further settlement agreement with ThyssenKrupp, which

came into effect on January 31, 2014 following the granting

of consent thereto by the respective committees at Thyssen

Krupp and the grant funding bodies in question.

Noise-based train-path pricing system

Since June 1, 2013, the noisebased trainpath pricing system

(laTpS) introduced by DB netz AG stipulates an initial sur

charge on the regular trainpath price for loud freight trains

of 1.0 % (as of December 14, 2014: 2.0 %). This surcharge will

be gradually increased over the course of the eightyear eli

gibility period, the amount of the increase being based on

the list of charges for trainpath usage and additional and

ancillary services of DB netz AG applicable in each case.

Freight trains at least 80 % (as of December 14, 2014: at least

90 %) of which consist of freight cars with quiet braking

technology are exempt from the surcharge, with the train

operating companies (TOCs) being required to provide evi

dence of their use of such technology. Since the last time

table change on December 9, 2012, TOCs have been receiving

a mileagebased bonus of 0.5 cents per axle kilometer or a

maximum of € 211 per axle when using quiet, refitted freight

cars. In order to qualify for this bonus, they must observe

the thresholds stipulated by the “Technical Specification for

Interoperability – noise,” regardless of the type of brake shoe

(K brake shoes or ll brake shoes) used.

Implementation of the Infrastructure Improvement

Acceleration Program II

The implementation of additional noise reduction measures

in 2013 and 2014 is made possible by the Federal Govern

ment’s Infrastructure Improvement Acceleration program II

(IBp). We still have about € 37 million of the total funding for

noise reduction on the railways in the amount of € 40 million

at our disposal. extensive preparatory measures were taken

and projects already implemented during the year under

review.

Modernization of the existing network

We pushed ahead with the modernization of our existing net

work during the year under review, renewing almost 3,000 km

of track, about 1,800 switches, more than two million rail way

ties and 3.5 million tons of ballast. DB netz AG has bundled

together about 900 of the most extensive construction mea

sures within 72 corridors with a view to reducing the number

and duration of suspensions of service due to construction

work, which has been carried out on the Hamburg–Hanover,

Berlin–Rostock, munich–Salzburg, nuremberg–Saalfeld–

naumburg, emmerich–Oberhausen–Duisburg lines and also

in the rail hub leipzig, for example.

Progress with regard to new and expansion line

construction measures

FOuRTRACK eXpAnSIOn OF THe RHIne vAlleY lIne

The financing agreement for the fourtrack expansion of the

Rhine valley line between müllheim and Auggen (section 9.0b

of the planning approval) was signed by the Federal minis

try of Transport and Digital Infrastructure (BmvI) and by

DB netz AG in December 2012. About € 200 million will be

invested in this construction project over the next few years.

The project includes the fourtrack expansion of the line

north of the Katzenberg tunnel over a length of about 6 km.

!!! K


plAnS FOR THe HAnAu–WüRZBuRG/FulDA

neW AnD eXpAnSIOn lIne

DB Group and the ministry for economic Affairs, Transport

and Regional Development for the State of Hesse announced

in the year under review that affected municipalities and

citi zens would be involved in the plans for the Hanau–Würz

burg/Fulda new/expansion line at an early stage in order to

foster the greatest possible level of acceptance for the proj ect

within the region. The project structure has been approved.

The allocation of the transportrelated and operational tasks

for the project is currently underway. public informational

events like those in July 2013 as well as workshops with the

most important stakeholders form part of the concept for

extensively involving the public.

eXpAnSIOn OF THe emmeRICH–OBeRHAuSen lIne

The financing agreement for the threetrack expansion of

the about 73kmlong line between emmerich and Ober

hausen was signed in July 2013. This rail line is part of the

most impor tant and busiest freight transport corridors

within europe: It connects the Ruhr metropolitan area and

the Rhine valley corridor with the north Sea ports and the

BeTuWe line to the overseas port of Rotterdam. A total of

about € 1.5 billion is set to be invested in this project in the

next few years, with the Federal state of north RhineWest

phalia providing € 450 million and the Federal Government

contributing about € 746 million (thereof about € 51 million

in Ten funds). The remaining amount will be provided by

DB Group and third parties.

Noise protection measures in the Middle Rhine Valley

The viability study commissioned by the “Quieter middle

Rhine valley” advisory board was launched with a survey of

the sites affected by noise produced by rail transport in the

middle Rhine valley between Bingen or Rüdesheim and

Koblenz, starting in eltville. The goal of this study is to iden

tify and evaluate additional noise protection measures for

both rail lines within the World Heritage Site in the middle

Rhine valley, and it will be financed using IBp II funds. The

evaluation of the sites, including the tabling of proposals for

noise reduction measures, will probably be concluded in the

second quarter of 2014, with residents, citizensʼ action groups

and municipalities being given an opportunity to submit pro

posals of their own. An evaluation model will also be devel

oped to facilitate the assessment and comparison of the

effectiveness and costs of the different measures.

Capital expenditures in rail grinding machines

Having procured two new highperformance rail grinding

machines for preventative maintenance measures for about

€ 40 million, we are the first infrastructure operator in europe

with our own vehicles. We are now in a position to double

our operating speed to 12 km/h as compared to our previous

machines and to significantly reduce the necessary offtime

for rail grinding.

ERTMS infrastructure in Corridor A

The BmvI has issued a landmark decision to the effect that

the German section (emmerich–Basel) of the european cor

ridor A (Rotterdam–Genoa) is to be equipped with the euro

pean signaling system european Rail Traffic management

System (eRTmS). The basis for this is the Technical Specifica

tions for Interoperability relating to the “ControlCommand

and Signaling Subsystems” of the Transeuropean Rail Sys

tem (TSI CCS; Decision 2012/88/eu). A financing agreement

for the plans for Corridor A was concluded with the BmvI in

2013, and we intend to do the same in 2014 for the construc

tion aspects of the project. pursuant to the TSI CCS, eRTmS

infrastructure is also to be implemented for three further

German sections of the european corridors Stockholm–

naples, Dresden–Budapest and Antwerp–Terespol.

Other events

more than 60,000 trainpath applications for the 2014 net

work timetable have been received in due time by DB netz

AG from the about 390 infrastructure customers, the highest

number to date.


The rail infrastructure expertise of DB Group is concentrat

ed within the DB netze Track business unit. A core challenge

is to ensure a high level of quality and availability for the

German rail infrastructure on a sustained basis while at the

same time ensuring the competitiveness of the rail mode of

transport. Of material importance in this regard are the con

tributions made by the Federal Government to the infra

structure financing. One instrument for this is the service

and financing agreement concluded with the Federal Gov

ernment. In early 2011, we also concluded the rail financing

cycle with the Federal Government with the aim of promot

ing demandoriented new construction and expansion rail

infrastructure.

K


On the economic side, considerable challenges are posed to

profitability as a result of developments in factor costs (relat

ing to personnel, maintenance and energy, in particular) and

at the same time a disproportionately small increase in reve

nues due to low growth in demand and limited leeway with

regard to pricing.

The modernization and maintenance of the existing net

work in a fully costeffective manner, which is in line with

demand, in addition to the creation of additional network

capacity, is of the utmost importance for the implementation

of measures. Integrating capital expenditure and mainte

nance planning as well as concentrating construction sites

into corridors and integrating them into the timetable will

ensure the most efficient use of resources. At the same time,

with regard to the objectives of the economic ≈ dimension of

our DB2020 strategy, the negative effects on our customers

in the areas of passenger and freight transport are minimized.

This allows us to guarantee high availability and quali ty of rail

infrastructure in spite of everincreasing transport volume.

By developing rail infrastructure in line with customer

and market requirements, we enable the entire rail trans

port sec tor to exploit opportunities for growth. Our network

devel op ment strategy forms the longterm basis of a high

quality, reliable and secure range of rail transport options

– at fair prices. Our expansion and new construction projects

are re mov ing bottlenecks and providing sufficient capacity

to handle future transport growth. Within the scope of the

network plan “netzkonzeption 2030,” we are investigat

ing the requirements rail passenger and freight transport

customers will place on the rail infrastructure in 2030 and

are incorporating the network development strategy created

on the basis of these customer requirements into the Federal

Transport Infrastructure plan. In order to forge ahead with

the demandoriented expansion of the rail infrastructure,

we have established a new infrastructure financing instru

ment in the form of the network fund.

Highly trained, satisfied employees are the key to the

success of our business. ensuring a positive worklife bal

ance, offering attractive jobs and employment conditions,

and intensive communication within DB Group are therefore

im portant targets for us with regard to the social † dimen

sion. With our personnel action plan, we have launched ini

tiatives to ensure that we can meet our future personnel

requirements with qualified employees, preserve the em

ployability of our older personnel and allow parallel employ

ment. Through the innovation prize launched in 2011, we

make use of the extensive knowledge of our employees and

actively involve them in the development of the company.

By implementing both conventional and innovative noise

reduction measures and a noisebased trainpath pricing

system as part of the environmental ¥ dimension, we are mak

ing an important contribution to the reduction of noise pol

lution caused by rail transport as well as increasing public

acceptance of this mode of transport. In addition, we are

developing measures to improve our energy efficiency and

thus ultimately reduce our CO₂ emissions. Consistent recy

cling of tracks, ties and ballast rails enables us to increase

our resource efficiency. We keep our employees informed of

the newest developments and requirements in the area of

environmental protection at regular events, with particular

emphasis being placed on the issues of noise and vibration

reduction as well as nature and species conservation.


Business development in the DB netze Track business unit

in the period under review was less favorable than in the

previous year. Higher revenues resulting from price adjust

ments and growth in nonGroup demand were only able to

partially offset the significant increase in expenses with

regard to maintenance (primarily due to the cleaning up of

the damage caused by flooding and storm fronts) and per

sonnel (primarily as a result of the hiring of new opera

tional staff and wage increases), extensive winter services

and lower real estate income from the sale of land. The

development of gross and net capital expenditures was

characterized by increased capital expenditures in the

existing net work.

Slight decrease in cost of capital

Product quality of rail infrastructure [ % ] 2013 2012 2) 2011 2)

| Total punctuality 1) in Germany 93.8 94.3 94.4

1) Non-DB Group and DB Group train operating companies.2) Adjusted figures.

The development of the product quality indicator for the

rail infrastructure was slightly negative in the year under

review as a result of floodrelated adverse effects, among

other things. Average total punctuality of nonDB Group and

DB Group train operating companies with respect to the

products in Germany was 93.8 % (previous year: 94.3 %).

!!!

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Customer satisfaction declined slightly


| DB Netze Track 72 73 74

In the fall of 2013, DB netz AG customers took part in a survey

on all areas of service. This included the topics of communi

cation, network and nonscheduled timetables, and opera

tions, as well as questions concerning infrastructure, con

struction projects, and employee and service competence.

With a satisfaction index of 72, the figures from the previous

remained virtually unchanged, albeit with a slight downward

tendency. Above all, we received positive grades in the areas

of service, communication and trainpath allocation, espe

cially in the network timetable, however the extensive con

struction work carried out as well as the effects of the floods

and the staff situation in mainz were reflected in negative

customer ratings. We will continue to work on resolving and

rectifying these issues in 2014.

Economic development below previous year’s level

DB Netze TrackSelected key figures [ € million ] 2013 2012

Change

absolute %

Length of line operated (km) 33,295 33,319 –24 – 0.1

Train kilometers on track infrastructure (million train-path km) 1,033 1,038 – 5 – 0.5

thereof non-Group customers 247.1 230.4 + 16.7 + 7.2

share of non-Group customers (%) 23.9 22.2 – –

Total revenues 1) 4,769 4,716 + 53 + 1.1

External revenues 2) 1,024 981 + 43 + 4.4

share of total revenues (%) 21.5 20.8 – –

EBITDA adjusted 1,556 1,822 –266 – 14.6

EBIT adjusted 665 894 –229 –25.6

Operating profit after taxes 266 453 – 187 – 41.3

ROCE (%) 3.7 5.0 – –

Capital employed as of Dec 31 17,929 17,895 + 34 + 0.2

Net financial debt as of Dec 31 10,556 10,485 + 71 + 0.7


Gross capital expenditures 5,333 5,033 + 300 + 6.0

Net capital expenditures 1,080 962 + 118 + 12.3


1) Previous year’s figures adjusted for effects (€ + 7 million) from the reclassification of other operating income to revenues.

2) Previous year’s figures adjusted for effects (€ + 1 million) from the reclassification of other operating income to revenues.

Trainpath demand fell slightly by 0.5 % in the year under

review as a result of declines in DB Group regional and rail

freight transport. lower demand for longdistance transport

services, above all as a result of the floods, had a negative

impact which was only partially offset by greater demand

from nonGroup railways in the areas of regional and rail

freight transport.

Total revenues rose by 1.1 % in the year under review, pri

marily as a result of positive price effects. The development

of external revenues reflects the increases in demand from

nonGroup railways, which resulted from the takeover of

transport contracts in regional transport as well as from

growth in rail freight transport. Other operating income was

7.2 % lower than in the previous year, primarily due to lower

income from the sale of real estate and waste materials

(price effect with respect to scrap steel).

The cost of materials rose significantly (+8.1 %) in the

year under review, driven in particular by increased expen

ditures on winter services, maintenance (primarily relating

to the cleaning up of the damage caused by flooding and

storm fronts, as well as the replacement of defective con

crete ties) and on energy. personnel expenses rose (+ 5.6%)

as a result of wage increases and the yearonyear increase

in the number of employees (due in particular to the hiring

of new operational and maintenance staff ). The increase in

other operating expenses (+ 4.0 %) is largely attributable to

increased personnelrelated expenses in line with the in

crease in the number of employees. Depreciation decreas ed

(– 4.0 %) largely due to reversal effects in connection with

the replacement of defective concrete ties.

In total, adjusted eBITDA fell by € 266 million to € 1,556

million as a result of a significant increase in expenses, and

adjusted eBIT decreased by € 229 million to € 665 million.

As a result of an improvement in operating net interest

income, among other things as a result of lower effects due

to compounding of pensions, the absolute decrease in oper

ating profit after interest was lower (€ –187 million to € 266

million).

The drop in adjusted eBIT and the virtually unchanged

amount of capital employed led to a decrease in ROCe from

5.0 % to 3.7 %.

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The slight increase in net financial debt (+ 0.7 %) was the

result of lower profits in the wake of higher net capital expen

ditures. Redemption coverage decreased slightly to 10.9 % as

of December 31, 2013 as a result of the increase in adjusted

net financial debt and the profitdriven decrease in operating

cash flow.

Gross capital expenditures were higher than in the pre

vious year (+ 6.0 %) largely due to increased capital expen

ditures in the existing network. There was an aboveaverage

increase in net capital expenditures (+12.3 %). The majority

(about 70 %) once again related to capital expenditures in

the existing network. These included in particular the mod

ernization of the superstructure, the renewal of command

and control technology and bridges, measures on rail cross

ings and tunnels, as well as noise reduction. Further capital

expenditures related to new and expansion lines, including

major projects such as Stuttgart 21, the German unity Trans

port projects (vDe) no. 8.1 nuremberg–erfurt, and no. 8.2

erfurt–Halle/leipzig, the Berlin–Rostock trainpath upgrade,

the Stuttgart–Augsburg new/expansion line, the Olden

burg–Wilhelmshaven expansion line, the Karlsruhe–Basel

new/expansion line and the Saarbrücken–ludwigshafen 23

expansion line.

The increase in the number of employees (+1.9 %) as of

December 31, 2013 as compared to the previous year is large ly

the result of the hiring of new operational and maintenance

staff.

DB Netze Stations business unitevenTs In 2013

Implementation of the Infrastructure Improvement

Acceleration Programs

In 2012 and 2013, the Federal Government provided addi

tional funding to the amount of € 1 billion within the scope

of the Infrastructure Improvement Acceleration program I,

€ 100 million of which related to the rail mode of transport

and was used for the modernization of small and medium

sized stations.

By the end of 2013 measures at about 250 stations have

been implemented. The construction work was aimed at

improving the appearance, wheelchair access, safety and the

provision of information to passengers, and the implementa

tion of the more than 400 individual measures was com

pleted on time. more than 90 individual measures related

to work on platforms, 40 construction measures involved

improving access to platforms, 90 individual measures

served a weatherproofing purpose, 60 individual measures

focused on improving lighting and 120 measures were

directed at raising the quality of public announcements and

the provision of information to passengers.

Development and modernization of video monitoring facilities

In July 2013, we concluded an agreement for the develop

ment and modernization of facilities for video monitoring

and recording at train stations with the Federal ministry of

the Interior. About € 36 million will be invested in the joint

program over the next six years. The installation of the new

video technology will be planned in cooperation with the

Federal police force and the stations in question will be

selected and prioritized on the basis of police and rail man

agement criteria.

Conclusion of framework agreement with

the Federal state of Saarland

We once again concluded a framework agreement with the

Federal state of Saarland in the year under review, pursuant

to which 15 stations will be modernized and all stations

within the Federal state of Saarland which are used by more

than 300 passengers per day will be equipped with dynamic

visual displays. The financing volume for all of the projects

amounts to about € 22 million, half of which will be provided

by the Federal state of Saarland and the remaining 50 % of

which will be provided by DB Station & Service by means of

Federal and own funds.

Successful implementation of construction measures

numerous stations were modernized, provided with better

accessibility or newly constructed in 2013.

A The City Tunnel leipzig was opened at the end of 2013

after a construction phase of ten or so years. Four new

underground stations and five new overground stations

were constructed, all of which with a particularly cus

tomerfriendly design. each of the tunnels of the City

Tunnel is 1,438 m long and has a diameter of 7.9 m. This

project links leipzig city center to the rail transport net

work for the benefit of our customers.

A The new station building at BerlinOstkreuz station was

opened in April 2013.

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A The refurbished münster central station commenced op

er ations in August 2013.

A A new station was opened in the university quarter of

lübeck in 2013.

A The new hall roof for Wiesbaden central station was com

pleted in november 2013 after three years of renovation

work.

A A total of 50 stations were provided with better accessi

bility. These include Apolda central station, merseburg

central station, Heide central station, Ingolstadt central

station, munichpasing station, munichSiemenswerke

station, Bayreuth central station and Tutzing central

station.

Leasing in stations

A sustained positive trend could be observed in the context

of leasing in stations. Revenues have increased by an aver

age of 3 % annually since 2008. leasing area in stations

encompasses a total of about 1 million m² – some 600,000

m² of which is accounted for by retail space. Overall, we

have about 3,500 tenants among our business partners.


passenger stations are increasingly becoming meeting places

in today’s mobile society and forming the hub of inter modal

transport systems. With its about 5,400 stations, DB netze

Stations is the largest operator of railway stations in europe

and as such has contributed greatly to this development.

As a result of our “Stations2020” strategy, our vision of sta

tions as hubs for human interaction and mobility is now within

reach.

As regards the economic ≈ dimension, we consider the

link ing of further transport products to our stations to be

a core aspect of the development of the intermodal trans

port system of the future. parking areas for electric cars and

ebikes, as well as stopping points and parking areas for

longdistance buses, mean that stations also constitute an

essential element of urban infrastructure even in the road

traffic context. In addition to increasing free WiFi access [ page

125 ], we are also driving forward the development of modern

video technology [ page 125 ] and focusing on improving our

customers’ sense of security. We are continuing to pursue our

goal of improving customer satisfaction by increasing acces-

sibility [ page 125 ] and are gradually weatherproofing our sta

tions and providing passengers with dynamic travel informa-

tion [ page 125 ].

moreover, we will also further increase the attractiveness

of our rental space in the future by means of new marketing

concepts and collaboration with our leasing partners and

thereby drive forward the economic development of our

about 1,100 concourse buildings, with a view to providing

our customers with an even broader range of goods and

services. We are also exploiting possibilities for development

outside of our stations, which by virtue of their central loca

tions and optimum transport links also provide attractive

opportunities for reviving the immediate surrounding areas.

As regards the social † dimension, the involvement and

acceptance of our employees will be a decisive factor in the

successful implementation and penetration in organizational

terms of our “Stations2020” strategy. In the year under review,

we discussed our business strategy with more than twothirds

of our employees in the context of 344 workshops held as

part of our “Stations2020 Dialog” initiative, also reinforcing

this impetus towards changing our corporate culture with

the intro duction of an improvement management system to

encourage open dialog even across corporate hierarchies.

As regards the environmental ¥ dimension, DB netze Sta

tions, as the operator of a complex asset portfolio, is an im

por tant element of DB Group’s role as an ecopioneer; we

place great emphasis on the use of environmentally friendly

building technologies, investigating the use of combined

geothermal energy production, combined heat and power

generation or photovoltaic systems at all sites for station

modernization or construction.


In the year under review, the performance of the DB netze

Sta tions business unit was characterized by increased

expenses as a result of a greater need for maintenance,

higher energy costs and collectively agreed wage increases,

which in the context of changes in net profit could not

entirely be offset by increased revenues.

!!! K


Product quality improved

Product quality of DB Netze Stations [ grade ] 2013 2012 2011

| Facilities quality 3.03 3.05 3.06

The assessment of facilities quality is carried out on site

using a detailed calculation and weighting algorithm. It

improved further in the year under review to 3.03 (previous

year: 3.05).

Customer satisfaction improved slightly


Stations (private customers) 67 69 68

Stations (TOCs and transport authorities) 65 59 56

Tenants 74 73 74

The overall assessment of the stations corresponded to an

SI rating of 67 in the year under review, which represents a

slight decline compared to the previous year. Customers’

assessment of the individual areas of service remained

stable on a nationwide basis, however the appearance of the

stations was the subject of some criticism. major changes in

the individual assessments could be observed on a regional

basis, with the operational problems in mainz and essen, for

example, resulting in a significantly more critical assessment

of the aspects of customer information and service. How

ever, customer service at train stations received good cus

tomer ratings overall, as did the retail, gastronomic and

sales services provided.

In the spring of 2013, train operating companies and

transport authorities took part in a survey on their satisfac

tion with aspects of the entire range of services offered,

including the aspects of cleanliness and safety, equipment,

signposting, information, service, pricing, invoicing and sup

port. Overall customer satisfaction increased in the year

under review to an SI rating of 65 (previous year: SI of 59).

This positive development is above all attributable to

improvements implemented with respect to the train oper

ating companies. Customer service on the ground (regional

customer service and station management) and the service

centers (including station pricing) have the greatest influ

ence on overall customer satisfaction, however the aspects

of infrastructure and information services also play an impor

tant role. Overall customer satisfaction increased significantly

as a result of improvements in these areas (invoicing/tech

nical equipment).

In fall 2013, a survey of tenants in the stations was also

conducted. Overall satisfaction improved slightly to an SI of

74 (previous year: SI of 73). The survey covered the entire

process from support to product performance and invoicing

to processing of complaints. Customer service is the most

important driver for overall customer satisfaction, followed

by the processing of complaints, while the aspects of

product performance and invoicing have a less significant

impact. very good evaluations once again with respect to

customer service meant that the positive results could be

maintained, however there is still room for improvement

with respect to complaints management.

Economic development stable

DB Netze StationsSelected key figures[ € million ] 2013 2012

Change

absolute %

Passenger stations 5,373 5,350 +23 + 0.4

Station stops (million) 143.2 143.4 – 0.2 – 0.1

thereof non-Group customers 27.1 26.5 + 0.6 +2.3

Total revenues 1,119 1,102 + 17 + 1.5

thereof station revenues 756 738 + 18 +2.4

External revenues 428 416 + 12 +2.9


EBIT adjusted 229 230 – 1 – 0.4

ROCE (%) 7.8 7.9 – –

Capital employed as of Dec 31 2,936 2,906 + 30 + 1.0

Net financial debt as of Dec 31 1,429 1,406 +23 + 1.6



Net capital expenditures 157 178 –21 – 11.8


The number of station stops remained virtually unchanged

in the year under review. A fall in demand of DB Group cus

tomers, particularly in the area of regional transport, was

offset by growth with respect to nonGroup customers.

The increase in total revenues (+1.5 %) is due to higher

station revenues resulting from price factors as well as

higher rental and leasing revenues. The positive develop

ment in the retail sector was reflected in rental revenues.

The increase in external revenues reflects the increased

number of station stops of nonGroup railways. Other oper

ating income increased on a yearonyear comparison,

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K


largely as a result of an increase in the subsidies awarded for

projects, while an increase in DB Group orders and oneoff

effects arising out of compensation for loss of rent had a

positive impact.

The cost of materials rose (+2.4%) on account of greater

expenditures on winter services and energy. personnel ex

penses rose (+3.4%) as a result of collectively agreed wage

increases and the yearonyear increase in the number

of employees. Depreciation was slightly higher (+3.9 %)

year on year as a result of an increase in property, plant and

equipment.

Overall, expenses could not be entirely offset by increased

income.

Adjusted eBITDA, which increased by € 4 million to € 363

million, remained more or less at the previous year’s level, as

did adjusted eBIT, which fell by € 1 million to € 229 million.

The slightly increased capital employed, which was

largely attributable to an increase in assets, resulted against

the background of the stable development of eBIT to a slight

fall in the ROCe from 7.9 % in the previous year to 7.8 % in the

year under review.

net financial debt increased slightly (+1.6%). The level

of redemption coverage improved somewhat to 20.7 % as of

December 31, 2013, largely as a result of the positive devel

opment of operating cash flow.

While gross capital expenditures increased (+11.8 %) as

a result of greater construction activities due to, among

other things, the completion and extension work in connec

tion with the Stuttgart 21 and City Tunnel leipzig projects,

as well as the extension of the north and South Halls of

Dresden Central Station, net capital expenditures decreased

(–11.8 %) as a result of a lower level of required own funds.

The number of employees was slightly higher (+ 0.8 %) as

of December 31, 2013 as compared to the previous year as a

result of new hires – above all in the operating business units.

DB Netze Energy business unitevenTs In 2013

New contracts for the supply of renewable energy

In march 2013, DB netze energy contracted an additional

two wind farms along the north Sea coast in Krummhörn in

the vicinity of emden. Owner and operator of the facilities is

eWe Windservice GmbH. The 15 wind turbines supply about

36 GWh of power per year, thereby increasing DB netze

energy’s total supply of wind energy to 48 wind turbines

with an annual production of about 140 GWh, and resulting

in a decrease in CO₂ emissions of about 82,000 t.

In addition, DB netze energy and veRBunD, Austria’s

leading power company, signed a contract at the beginning

of 2013 for the supply of hydropower. veRBunD now sup

plies DB netze energy with about 300 million GWh of eco

power per year. The contract is effective until 2015. Besides

the contracts concluded with RWe for 900 million GWh per

year from 2014 onwards and with e.On for 600 million GWh

per year from 2015 onwards, this is the third large hydro

power contract that DB netze energy has entered into.

Renewable Energy Sources Act surcharge to be imposed

Contrary to the practice to date, the surcharge in accordance

with the Renewable energy Sources Act (erneuerbareener

gienGesetz; eeG) will in the future cover all traction power,

i.e. also the 16.7 Hz energy generated at the traction power

plants. This will result in additional costs for DB Group in the

mid doubledigit millions. An abolition of the load limits for

rail transport is also being discussed as part of the eeG

amendment. This “special equalization scheme” for railway

companies was enshrined in the eeG with a view to main

taining the intermodal competitiveness of rail transport, and

this situation remains unchanged. Should the legislature

introduce changes to the detriment of the railways, this

could result in considerable additional costs

Site Selection Act passed

According to the Atomic energy Act, the Federal Government

is responsible for providing facilities for the longterm storage

and disposal of radioactive waste. A twophase site selection

process with full involvement of the public is to be conducted

by December 31, 2031. The Site Selection Act provides the

legal basis for this process. According to legislation, the

costs are to be borne by those liable to pay waste charges. DB

Group’s share of the searchrelated costs in the total amount

of about € 2.7 billion amounted to about € 10 million in the

year under review, and the adjustments to the Act planned

for 2016 are likely to result in a further increase in costs.


The main responsibilities of DB netze energy are to guarantee

a reliable supply of power to meet the energy requirements

of train operating companies and the sustainable procure

ment of energy. The business unit has a highperformance

K


infrastructure for the provision of electricity and diesel to

mobile and stationary consumers. On the basis of this, we

offer Group and nonGroup customers electricity, diesel, gas,

heat and innovative energy services. By means of structured

energy procurement and intelligent network usage, our aim

is to compensate for the negative effects of volatile com

modity prices as much as possible.

With regard to the economic ≈ dimension, DB netze

energy has attained an excellent level of reliability of supply.

That means that, every year to date, we have exceeded the

target agreed upon with the Federal Government in the

luFv. This quality is also reflected in the high level of custo-

mer satisfaction ¿. We strive to retain this high level of quality

and to continue to offer our customers attractive products

in the future. Furthermore, DB netze energy uses the know

how available to it in order to provide marketoriented

services to meet the demand from external industrial and

commercial enterprises for qualified assistance in the pro

curement of electricity and gas. In addition to the railbased

core business, DB netze energy also intends to affirm its

market position in external markets in this manner.

With regard to the social † dimension DB netze energy

intends to ensure a high level of employee satisfaction † by

fostering an open information and communication culture.

Furthermore, we have also developed measures to coun

teract demographic change and increase the proportion of

women † within the business unit.

With regard to the environmental ¥ dimension, the goal is

to meet 100 % of our traction power requirements with re

newable energy by 2050. In passenger and freight transport,

customers today are already able to reduce their carbon

footprint by taking advantage of products based entirely on

renewable energy ¥. In order to meet demand for ecopower,

supply agreements have been concluded for electricity from

hydroelectric and wind power sources. In addition, DB netze

energy is also committed to increasing energy efficiency

throughout DB Group and is the driving force behind innova

tive energy solutions such as electromobility.


In the year under review, DB netze energy was forced to grap

ple with a lower demand, new regulatory requirements and

further structural upheavals in the German electricity mar

ket, which had an appreciable adverse effect on revenues

and net profit.

Product quality improved slightly

Product quality of DB Netze Energy [ % ] 2013 2012 2011

| Supply reliability 99.99 99.93 99.91

DB netze energy was able to maintain the high level of reli

ability of its energy supply, which reached 99.99 % in the year

under review.

Customer satisfaction risen slightly


DB Netze Energy 78 77 77

Traction current and diesel 77 75 –

Electricity and gas plus (internal customers) 75 – –

Electricity and gas plus (external customers) 81 – –

DB netze energy customers were surveyed in the fall of 2013.

Overall, the customer satisfaction index (SI) rating was very

good at 78 (previous year: SI of 77). In the area of traction

current and diesel, the SI rating was 77 (previous year: SI of

75). The new areas of traction current and diesel and elec

tricity and gas plus are the result of reorganization measures.

no comparison can be drawn with the previous year; in the

year under review, the SI rating was 75 for internal customers

and 81 for external customers.

Decline in business development

DB Netze EnergySelected key figures [ € million ] 2013 2012

Change

absolute %

Traction current (16.7 Hz and direct current) (GWh) 10,194 10,403 –209 –2.0

Stationary energy (50 Hz and 16.7 Hz) (GWh) 3,533 5,319 – 1,786 – 33.6

Diesel fuel (million l ) 459.0 469.8 – 10.8 –2.3

Total revenues 1) 2,775 2,870 – 95 – 3.3

External revenues 2) 928 1,080 – 152 – 14.1


EBIT adjusted 71 91 –20 –22.0

ROCE (%) 7.8 9.4 – –

Capital employed as of Dec 31 909 969 – 60 – 6.2

Net financial debt as of Dec 31 179 315 – 136 – 43.2



Net capital expenditures 83 72 + 11 + 15.3




¿

¿

æ †

K


In the year under review, demand for traction current

(–2.0 %) and diesel (–2.3 %) was particularly affected by a

fall in demand from DB Group customers in passenger and

rail freight transport, which could not be counterbalanced

by increases with regard to nonDB Group customers.

Together with increased intermodal competition and the

consequences of the floods, increases in efficiency also

resulted in a decrease in traction energy consumption. The

intense price competition in the area of stationary energy

had a more severe impact, leading to a drop in demand of

almost 34%.

The fall in demand also had a major impact on the devel

opment of revenues, however this was to some extent offset

in total revenues by effects arising out of the “greenifica

tion” of longdistance transport services and the passingon

of increases in statutory energy surcharges. Other operating

income increased (+18.2 %) due to additional income from

net operating services as a result of the takeover of the trac

tion power supply facilities of the SBahn (metro) in Berlin

from DB netz AG.

Developments with regard to volumes resulted in a fall

in the cost of materials (–3.8 %) as a result of lower expenses

in relation to energy procurement, which more than offset

oneoff effects in connection with the Site Selection Act and

the increase in other expense items. Alongside collectively

agreed wage increases and the takeover of the traction

power supply facilities of SBahn (metro) Berlin, the imple

mentation of regulatory requirements in business processes

and IT systems also had an effect on personnel and other

operating expenses. The increase in depreciation was

driven, among other things, by the takeover of the traction

power supply facilities of SBahn (metro) Berlin.

The fall in revenues, together with a disproportionate

decrease in costs, led to a deterioration in adjusted eBITDA

(€ –12 million to € 161 million) and in adjusted eBIT of (€ –20

million to € 71 million). There was also a disproportionate

decrease in the amount of capital employed, while ROCe fell

from 9.4% to 7.8 %.

net financial debt fell significantly compared to the end of the

previous year as a result of positive cash flow performance

(– 43.2 %), which also had an effect on the level of redemp

tion coverage, which increased to 38.8 %.

Capital expenditures were higher than in the previous

year as a result of the takeover of the traction power supply

facilities of SBahn (metro) Berlin, with the focus on 16.7 Hz

traction power and facilities for the supply of stationary

50 Hz power.

As of December 31, 2013, the number of employees had

increased by 7.8 %. This was due to the takeover within

DB Group of 90 employees of DB netz AG and the continued

implementation of regulatory requirements applicable to the

energy industry.

other/consoLidation

The Other/consolidation item primarily comprises the holding

companies DB AG and DB ml AG, as well as other companies

that cannot be allocated to a business unit. The increase in

total revenues (€ + 49 million or +3.0 %) was largely the result

of an increase in internal services provided by DB projekt

Bau. Consolidation effects also increased slightly (€ + 94 mil

lion or + 0.8 %) as a result of reclassification of other operating

income [ page 211 ] to revenues, which also comprise internal

in come, which also increased in the case of DB netze

energy and DB netze projects. This was offset by a decline

in the pro vision of internal services with respect to vehicle

main te nance.

The change in adjusted eBITDA (€ +77 million or –13.9 %

to € – 475 million) and adjusted eBIT (€ +85 million or –14.7 %

to € – 495 million) was particularly due to positive effects

arising out of intraGroup placement of employees. This

development was tempered by expenditure on the top

employer branding campaign and also by an increase in

personnel expenses.

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180 Additional information180Purchasing volume down181 Additional issues related to operations and business operations

180 Deutsche Bahn Group 2013 AnnuAl RePoRt

Purchasing volume down

In the year under review, the purchasing volume decreased

to € 24.2 billion (previous year: € 29.4 billion). the pur-

chasing volume of industrial products dropped from € 8.7 bil-

lion to € 4.3 billion, as the previous year’s high volume of

vehicle orders was not repeated. the other key components

saw comparatively stable development. Freight and freight

forwarding services reduced slightly from € 10.3 billion to

€ 9.7 billion. Construction and engineering services declined

from € 5.1 billion to € 4.7 billion. In contrast, third-party ser-

vices increased from € 2.9 billion to € 3.1 billion. Cable-and-

pipe-bound power and fuel have remained constant at

€ 2.4 billion.

æ

Structure of purchasing volume [%] [ 2013 2012]

Freight and freight 40.1forwarding services 35.0

Industrial products 17.8 29.6

Construction and 19.4engineering services 17.3

Third-party services 12.8 9.9

Cable-and-pipe-bound 9.9power and fuel 8.2

Significant contract awardsInfrastructure

A the following contracts in particular were awarded as

part of the Stuttgart-ulm project: the Albaufstieg tunnel

(about € 635 million) and the Albabstieg tunnel (about

€ 250 million), an expansion of the S-Bahn (metro) running

through the Stuttgart central station and Stuttgart nord

(about € 56 million), the Filstal bridge (about € 53 mil-

lion) as well as the construction of the Widderstall tunnel

(about € 37 million).

A Contracts amounting to about € 224 million were awarded

for construction services for the Hanau–nantenbach

expansion line, including four tunnels as well as renewal

and alteration measures.

A the awarding of construction contracts for the German

unity transport Projects (VDe) 8.1 Hallstadt–ebensfeld–

erfurt amounts to about € 59 million.

A the installation contracts for command and control tech-

nology, crossings and electrical engineering resulted in a

total contract volume of about € 240 million.

A the contract volume for the framework agreements con-

cerning the delivery of concrete sleepers amounted to

about € 140 million.

A the framework agreements for rail transport services for

supply and waste disposal on track construction sites

amount to an order volume of about € 110 million.

A Framework contracts with a total volume of about € 110

mil lion were awarded for the disposal of superstructure

material as well as construction and demolition waste.

VehIcles

A We awarded Bombardier a contract for the delivery of

12 electric double-decker multiple-units for regional

transport. the capital expenditure volume is about

€ 113 million.

A We have agreed to a framework agreement with Bom-

bardier for the provision of electric locomotives with a

potential delivery volume of up to 450 locomotives with

possibly differing technical equipment by the year 2023.

the capital expenditure volume amounts to a maximum

of € 1.5 billion. A total of 110 locomotives for DB Schenker

Rail and 20 locomotives for DB Bahn Regional were

requested as part of the framework agreement.

A We also ordered 60 new trains from Bombardier for the

S-Bahn (metro) Hamburg. the total capital expenditure

volume is about € 327 million.

A We have concluded our first vehicle order contract with

Skoda for the delivery of six locomotive-driven double-

decker trains for regional transport. the capital expendi-

ture volume is about € 101 million.

Additional informationA A

Purchasing volume reduced to about € 24 billion

DB International awarded a new contract in Saudi Arabia

Complaint against anti-competitive practices in France

K

181Group manaGement report ADDItIonAl InFoRmAtIon

A We awarded Bombardier a contract for the delivery of

18 electric double-decker multiple units for regional

transport. the capital expenditure volume is about

€ 216 million.

A From PeSA (Pojazdy Szynowe PeSA Bydgoszcz Spolka

Akcyjna), we ordered 36 lInK diesel multiple units (Dmu)

(20 two-part and 16 three-part Dmu) for regional ser-

vices. the capital expenditure volume amounted to more

than € 118 million.

procurement wIth new challenGes

Centralized procurement makes a contribution to the imple-

mentation of the DB2020 strategy. to assist the achievement

of the goal of becoming a profitable market leader æ, centralized

procurement is continuing to analyze potential for further

optimization in all product groups in order to safeguard the

business units’ profit lines. Higher wage agreements – espe-

cially in Germany – create increasing price pressure, particularly

when it comes to overwhelmingly local, labor-intensive and

poorly tradable goods and services. there were very few

price increases in raw materials in the year under review. the

utilization of capacity in various supply sectors therefore

declined. the persistently weak economic development in

europe has had a dampening effect on prices. In the context

of supplier qualifications, we check that all suppliers meet

minimum eligibility requirements independently of the

awarding of a contract.

As part of our goal to become a top employer †, we have

introduced the “professional career in procurement.” All pro-

curement employees were assigned to one of five professional

career levels in the year under review. each professional

career level has standardized skills requirements and quali-

fication offers. the qualification offers were rolled out in the

year under review.

through the analysis of central environmental key figures

in the relevant product groups, centralized procurement

contributes to our goal of becoming an eco-pioneer ¥. In

future, selected sustainability aspects, such as product life

cycle costs, will be systematically investigated in the product

groups concerned.

additional issues related to oPerations and business oPerations

New contract in Saudi ArabiaDB International has been awarded a contract for the first

high-speed line in Saudi Arabia. In mid-September 2013, the

project managers commissioned DB International with the

design review of the superstructure, installation technology,

construction supervision and monitoring vehicle production

as well as project management.

Combating non-ferrous metal theftthe number of incidents of metal theft fell further in the

year under review. In total, about 1,750 incidents were

counted, which represents a year-on-year decline of more

than one-third. the consequential damage, such as opera-

tional disruptions and delays, multiplied the value of the

stolen metal. In the year under review, about 10,000 trains

were affected by operational disruptions, causing some

134,000 minutes of delay. these figures decreased by about

40 % compared to the previous year, however.

As part of prevention, we have engaged in a security part -

nership with Deutsche telekom, RWe and the Association of

German metal traders, including for the standardization of

the use of markers such as artificial DnA. We started a cross-

border initiative against metal theft with the police, customs

and other european railways in June 2013. the aim of the inter -

national work is to stop sales channels outside of Germany.

Other legal issues antItrust proceeDInGs aGaInst BrenntaG

During the acquisition of Stinnes AG at the end of 2002,

DB AG also acquired the Brenntag Group, active in the dis-

tribution of chemicals, which was resold at the start of 2004.

In may 2013, the French antitrust authorities imposed a fine

of about € 48 million against the Brenntag Group due to

alleged antitrust violations, in which companies of Brenntag

Group were allegedly involved. Although DB ml AG (formerly

Stinnes AG) has not been accused of any antitrust practices

on its own part, as former parent company it would be jointly

and severally liable with Brenntag for this fine. Furthermore,

a fine of about € 5 million was imposed against DB ml AG, as it

should not benefit from the fine re duction for the application

K

182 Deutsche Bahn Group 2013 AnnuAl RePoRt

for leniency made by the Brenntag Group in 2006. DB ml AG

first learned of the proceedings in mid-2012. DB ml AG has

filed an appeal against the decision to impose fines at the

Cour d’appel in Paris. the French tax authorities asked

Brenntag SA to pay the fine of about € 48 million. It there-

fore asserted a claim for payment in the amount of about

€ 24 million against DB ml AG. DB ml AG rejected this claim.

complaInt aGaInst antI-competItIVe

practIces In france

on December 18, 2012, the French antitrust authorities

reached a decision against SnCF in a case in which our

subsidiary euro Cargo Rail (eCR) acted as a petitioner. In

the authorities’ opinion, SnCF employed a variety of illegal

practices to impede competition in the French rail freight

transport market. the authorities imposed a fine of about

€ 60 million on SnCF and required it to end the practices.

the fine is not yet legally binding, as SnCF has appealed

the ruling. the eCR is involved in the appeal proceedings

as a co-applicant on the side of the authorities in order to

uphold the decision regarding the fine.

In addition to the multiple practical barriers to market

entry, such as a lack of terms and conditions for terminal

access, the non-rental of freight cars necessary for trans-

porting crops, the forwarding of eCR’s business secrets from

the SnCF’s infrastructure line of business to its freight trans-

port line of business, the decision regarding the fine also

considered the application of predatory pricing tactics in

particular. the eCR filed a claim for damages against SnCF

freight on June 14, 2013. the claim amount was set at € 68 mil -

lion on the basis of an external report.

contract VIolatIon proceeDInGs Due

to the transfer of puBlIc funDs

the eu Commission has accused the Federal Republic of

Germany of having insufficiently implemented the provisions

of accounting separation at DB AG, and is therefore preparing

further contract violation proceedings against the Federal

Republic of Germany.

on June 21, 2013, the eu Commission issued a “reasoned

opinion” against the Federal Republic of Germany. the Com-

mission’s accusation is that DB AG, in being able to freely

dispose of the profits of the DB Group rail infrastructure com-

panies as well as train operating companies (toCs), violates

european law. this enables a forbidden cross-subsidization

of toCs. the same applied with regard to concession fees.

Public funds (concession fees) could also be transferred ille-

gally to other operating areas of DB Group. the Commissionʼs

argument draws upon the “ban on the transfer of public funds”

governed under railway law, among other things.

the German Federal Government provided the eu Com-

mission with its detailed position on the allegations at the end

of August 2013. It is the opinion of the Federal Government,

which DB AG completely agrees with, that the eu Commis-

sion’s allegations are unfounded. German law guarantees the

ban on the transfer of public funds.

Group companIes tarGeteD

In antItrust proceeDInGs

the eu Commission carried out follow-up investigations at

several DB Group locations as part of antitrust proceedings

in the year 2011. Written requests for information were sub-

sequently submitted. the proceedings were formally opened

in June 2012. the proceedings focus on the traction current

pricing system of DB energie GmbH, which has been in place

since 2003. this system was deemed admissible in 2006 by

the Higher Regional Court of Frankfurt am main.

the eu Commission quashed the proceedings against the

transfer of commitments in December 2013. the appeal filed

against these follow-up investigations was rejected by the

Court of the european union in luxembourg. DB AG filed an

appeal against the decision with the european Court of

Justice.

InVestIGatIons at DB InternatIonal

Accounting firm KPmG conducted a special audit of DB Inter-

national GmbH (DB International) after allegations against

DB International came to the attention of the Frankfurt public

prosecutor in legal proceedings. the prosecution alleges

that former employees paid cash or in-kind contributions to

decision makers in foreign countries, either directly or

through third parties. the findings of the special audit par-

tially confirmed the allegations. DB International has taken

action accordingly. the official investigations are slated for

completion in 2014. DB International must anticipate a fine

as well as seizure of profits. At the same time, DB Interna-

tional is claiming damages from former decision makers at

the company.

K

183Group manaGement report AdditionAl informAtion

opportunity And risk report

our business activities bring not only opportunities, they

also carry risks. for this reason, our business policy aims to

take advantage of opportunities through our opportunity

management system while also actively managing any risks

identified within the framework of our risk management

system. the information processing required for this takes

place within our integrated risk management system. this

system is based on the legal requirements of the Corporate

sector supervision and transparency Act (Gesetz zur kon-

trolle und transparenz im unternehmensbereich; kontraG)

and is constantly being developed.

ManageMent assessMent of the risk situation

the assessment of the current risk situation is based on our risk

management system. in the year under review, dB Group’s

main risks were in the areas of regulation, markets as well as

production and technology. A year-on-year comparison

shows a slight reduction in the overall risk position during


æ

Risk profile 2014 financial year [ very probable probable ] as of Dec 31, 2013 [ % ]

Regulation 0 /61

Markets 1 /14

Production 5 /6 and Technology

Other 2 /11

taking countermeasures into account, the development

forecast for the 2014 financial year [ page 194 ff. ] includes risks

to the amount of € 1.1 billion (of which very likely (vl):

€ 0.1 billion). these risks are primarily from the areas of

regulation (€ 0.6 billion; of which vl: € 0.0 billion), markets

(€ 0.2 billion; of which vl: € 0.0 billion), as well as production

and technology (€ 0.1 billion; of which vl: € 0.1 billion). in

addition, there is an impairment risk as a result of the low

return on capital employed in infrastructure as well as the

risk of structural underfinancing in the existing network.

An impairment would also have an effect on dB AG’s ability

to pay dividends. Regulations regarding infrastructure finan-

cing [ page 193 ] are still pending. third-party assessments

also play an important role in the overall risk assessment.

Alongside the internal risk assessment system, dB Group’s

creditworthiness and default risk is rated by the three rating

agencies [ page 62 ] moody’s, s & p and fitch. their external

assessments of the overall risk position of dB Group are

reflected in the good ratings.

our analyses of risks, countermeasures, hedging and pre-

cautionary measures, together with the opinion of the Group

management Board based on the current risk assessment

and our medium-term planning, indicate that there are no

risks that, individually or jointly, could have an impact on the

net assets, financial or earnings position of dB Group and

would pose a threat to the Group as a going concern.

in terms of organization, we have created all of the con-

ditions necessary to enable the early identification of pos-

sible risks. our continuous risk management and the active

management of key risk categories help limit risks within

dB Group.

opportunity and risk ManageMent within dB group

the principles of risk management are laid down by corpo-

rate management and implemented throughout dB Group.

As part of our early-warning system for risks, quarterly

reports are submitted to the management Board and the

supervisory Board of dB AG. major risks occurring outside

of this reporting cycle must be reported immediately.

planned acquisitions are subject to additional specific

monitoring.

Opportunity and risk reportA A

Integrated risk management ensures transparency

Significant risks in the areas of regulation, markets as well as production and technology

Portfolio without any risks to DB Group as a going concern

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184 Deutsche Bahn Group 2013 AnnuAl REPORt

Our risk management system (RMS) maps all of the risks in

a risk portfolio and also individually in detail, factoring in

materiality thresholds. the risks considered within the risk

management report are categorized and classified according

to probability. together with possible consequences, the

analysis also takes into account the starting position and

the cost of countermeasures. in organizational terms, Group

controlling is the central coordination point for our risk

management system.

in conjunction with Group financing, with its strict focus

on the operating business, Group treasury is responsible

for limiting and monitoring the resulting credit, market and

liquidity risks. the centralized handling of the relevant

transactions (money market, securities, foreign exchange

and derivative transactions) by DB AG means that potential

risks can be managed and limited centrally. Group treasury

is organized in line with the minimum requirements for risk

management formulated for banks (Mindestanforderungen

an das Risikomanagement; MaRisk), which means that it

complies with the resulting criteria of the kontraG.

Our opportunity management efforts are mainly derived

from the goals and strategies of our business units. Opera-

tional management executives in the business units are

primarily responsible for the early and regular identification,

analysis and management of opportunities. these activities

are an integral element of the Group-wide planning and

controlling system. We focus intensely on detailed analyses

of our markets and competitors, market scenarios, relevant

cost drivers and critical factors for success, including those

within our political and regulatory environment. Concrete

opportunities for specific business units emerge from these

efforts and are subsequently analyzed.

opportunities report

to achieve our corporate objective of profitable growth æ, we

implement comprehensive packages of measures as part of

DB Group-wide or business-unit-specific programs, which we

anticipate will improve our performance quality, efficiency,

cost structures and profitability. Here, we also see opportu-

nities for further growth as well as improvement in our results

and key financial ratios. these have partly also been handled

in our medium-term planning, but partly also go beyond.

Overall, DB Group is well positioned to benefit from oppor-

tunities arising from significant trends in our markets. for

more details, please see the Corporate strategy and man-

agement section [ page 84 ].

to comply with our performance pledge as well as to

ensure the continuous quality improvement of our products

in the rail segment, we have implemented a customer and

quality initiative [ page 122 ]. We will continue to invest inten-

sively in the sustainable improvement of our service and

product quality in the coming years.

the development of the relevant economic environment

could on the whole be better than we anticipated. Any

resulting positive momentum would then have a positive

effect on the performance of the business units, in particular

in the area of transport and logistics.

We also see market-based opportunities in terms of our

ability to actively shape consolidations in the market by

leveraging our leading market positions. in doing so, we

want to seize the opportunities offered by the ongoing glo-

balization process. We could benefit from this development

in particular thanks to DB Schenker logistics’ excellent

position in the market.

With DB Arriva, we have a strong position in the European

transport market. We have also positioned ourselves in such

a way that we are well prepared to take advantage of the

opportunities posed by open and opening markets. As a result

of the sovereign debt crisis in Europe, we see opportunities

in increased tender procedure activities for bus and rail

transport in countries where their governments are forced

to implement austerity measures. in addition, there is the

possibility that new markets or market segments will be

opened for competition.

favorable exchange rates and interest rate moves could

potentially have a positive impact on our financial result.

Group treasury therefore closely follows developments in

the financial markets to identify and take advantage of

possible opportunities.

K

185Group manaGement report OPPORtunity AnD RiSk REPORt

Opportunity management in the business unitsDB Bahn LonG-Distance

in the DB Bahn long-Distance business unit, we see opportu-

nities to increase revenue and improve results. from the year

2014, we are again expecting significantly improved punctu-

ality [ page 148 f. ]. in addition, vehicle availability [ page 147 ] will

also be improved through the expansion of works infrastruc-

ture and an increase in vehicle reserves. new iCE 3 trains are

also scheduled to start in 2015 in regular operations. this will

result in a significant positive effect on the stability of

vehicle availability and vehicle deployment.

the modernization of passenger cars is continuing in

the iCfit and iCmod projects. While iCfit is necessary for

the technical stability of the passenger cars, iCmod helps

to increase customer satisfaction. in addition to new pro-

curements and modernization of vehicles, we are also im -

plementing modernization measures on passenger cars and

iCE trains from the iCE t and iCE 3 series, which will increase

the service life of vehicles. in terms of the moderni zation

of the existing iCE fleet, the redesign of the iCE 2 fleet was

completed in the year 2013. the focus is now on the iCE t fleet.

A further important measure in this respect is to augment

customer loyalty by gradually expanding our BahnCard pro-

gram. Our green offers will raise environmental awareness

and offer potential for further passenger gains.

in addition, we see opportunities to increase our cost-

effectiveness through marketing measures and yield man-

agement. Constantly increasing our range of international

transport offers also poses additional opportunities.

DB Bahn reGionaL

Our service pledge to our two customer groups – ordering

organizations and passengers – is central to the way we

operate. DB Bahn Regional also wants to establish itself as

a pioneer with regard to ecological services in the trans-

port sector. the goal is to build upon existing strengths in

the environmental sector as well as to anticipate current

and future challenges and to introduce measures.

in order to confront the growing challenges of the market,

a development plan was drafted for each region, each trans-

port operation and each central area of DB Bahn Regional

Rail in early 2013. the objective of each development plan

is to show how competitiveness can be achieved. As part of

the development plans, a total of more than 800 different

measures have been identified, involving the entire value

added chain.

Concrete improvement measures have been implemented

as part of DB Group-wide customer and quality initiative

[ page 122 ]. these include, for example, the use of additional

customer service representatives as well as improving the

appearance of our trains.

in order to improve customer reception, in 2013 we also

developed measures such as the expansion of the Regional

Online ticket shop to include regional offers as well as a tariff

offer map, and the train lab market research series on the

topics of multiple units and travel experience, taking our

ordering organizations and passengers into account.

in view of the expected increase in competition within

regional bus markets, we want to safeguard our competitive

position in bus transport. the central “BuS 2012 plus” program

aims to take advantage of growth opportunities and improve

profitability. the program includes a number of ongoing

projects to optimize processes and structures at DB Bahn

Regional Bus. As a result, measures were defined that will

increase the number of growth opportunities taken advan-

tage of, improve competitiveness and increase employee

satisfaction.

DB arriva

in the DB Arriva business unit, we see extensive opportunities

to benefit from the development in the European passenger

transport market.

in the uk Bus line of business, we see growth potential

in existing core business, through increasing efficiency and

identifying new sources of revenue outside of previous core

business (including patient transport, services for local

transport authorities and in the private sector).

in the uk trains line of business, there are opportunities

in the development of existing franchises, from tender pro-

cedures for new services and from progressive market

liberalization.

the opportunities for growth in the Mainland Europe

line of business result from “first-mover” advantages gained

by entering the market early, progressive liberalization in

rail passenger transport, experience from all modes of

transport with integrated offers and more frequent tender

processes as a result of the pressure to save money in many

European countries.

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DB schenker raiL

in the DB Schenker Rail business unit, we see opportunities

to return to a profitable growth trend.

the “ProRail plus” program was introduced in order to

bring together all of the projects in the business unit that

make a significant contribution to profits and that support

the development of the European network. the current pro-

gram portfolio comprises the following projects [ page 125 ]:

network rail, European Operations Management (EuROM),

further development customer service, European Controlling &

Governance (contACt) and Masterplan it.

in order to remain competitive in an environment marked

by strong intermodal and intramodal competition, cost-

reducing adjustments to the production facility in Germany

are necessary. these will be implemented through various

measures such as the “Action plan for Germany” [ page 158 ] as

well as the “Step by Step” project [ page 159 ] and network rail

[ page 124 ]. through this program and other measures, we are

consistently continuing along the path of ongoing increases

in capacity utilization in the vehicle sector (locomotives and

freight cars), optimizing interfaces within the business unit

through the closer interdependence of the operating programs

(non-stop and cross-border rail services, joint scheduling

of freight cars and locomotives) and improving processes by

implementing it projects. in addition, the improvement of

links between sales and production strives for increased

productivity, customer satisfaction and punctuality.

DB schenker LoGistics

the “level 4” program was drafted in the DB Schenker

logistics business unit, with the goal of achieving a sustain-

able improvement in the EBit margin to at least 4 %. this

project defines significant issues in all lines of business in

relation to growth, productivity and profitability. Specifi-

cally, the program comprises starting points from which

improvements to operative productivity can be made across

all lines of business. these include organizational measures

and programs such as DRP (Dynamic Resource Planning) in

land transport, PuMA (Productivity increase by efficient use

of MAnpower) in air freight and flEX (flawless EXecution)

in contract logistics. furthermore, we are working on im prov -

ing the gross profit margin in the air/ocean line of business

and optimizing use of assets in land transport.

An important measure to achieve a sustainable improvement

in productivity in all lines lies in the development and imple-

mentation of new operative it systems (new it landscape).

in European land transport, the Governance@land pro-

gram aims to achieve product /production-oriented differ-

entiation in system transport operations (general cargo,

parcel carriage) and direct transport (ftl road transport,

rail, intermodal) with a significant strengthening of central,

cross-border decision-making powers.

DB services

in order to compensate for the decline in traditional rail

business in Germany, the DB Services business unit started

a growth program in 2013. for DB Vehicle Maintenance,

DB fleet Management, DB Services and DB Systel, growth

options were investigated for the internal and external

market in Germany and Europe and an initial evaluation

was carried out. Opportunities in the business unit include

the continued optimization of component management in

the area of vehicle maintenance. A corresponding project

is being conducted by DB Vehicle Maintenance, in which

the existing component management is being optimized

and expanded.

the “Wir schaffen das” (we can do it) program, which current-

ly has 30 ongoing commercial and processing optimization

measures, has been implemented in DB Communication

technology to ensure long-term profitability.

DB netze track

the “Pronetz” program in the DB netze track business unit

combines important strategic and economic areas of action

in order to secure the long-term success of this business unit.

the specifics of the program lie in the intelligent interlinking

of strategic structural changes and company planning as

well as in the targeted formation of a base in the region. the

“future infrastructure” program, which addresses the primary

areas of action for improving profitability and quality assur-

ance, is integrated into the current portfolio.

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the top interdepartmental projects form the core of the

program:

A neXt – industrialization schedule reconsiders the current

approach to the drafting of schedules. industrialization

Maintenance (industrialisierung instandhaltung; iH) is

a program with projects that aim to standardize and

optimize work productivity, optimize the machine pool,

further develop materials management towards supply

chain management, derive cost-optimal vertical production

and reduce variant diversity.

A Optimizing the existing network targets a more efficient

and more effective use of resources in the existing

network.

A iSiS develops an extensive method for sustainably

improving the quality of technical systems data.

A DiAnA is the project that establishes a forecastable

diagnosis system for the facilities in order to enable

condition-based maintenance.

DB netze stations

the next Station program focuses on current challenges

faced by DB Station & Service AG. it serves as a platform for

confronting the challenges arising from competition and the

environment in a flexible manner. the objectives of next

Station include recognizing and taking advantage of risks

and opportunities from the market as well as competition

and the political environment and gearing services and prod-

ucts more strongly towards customer requirements in order

to increase customer satisfaction.

in order to ensure earnings from rental leases and to im-

prove building substances in concourse buildings, targeted

capital expenditures have been made in the core portfolio’s

concourse buildings as well as, above all, in measures to

optimize space and increase value. the orientation towards

the defined strategic further development and updating of

the business model for reception buildings and marketing is

at the forefront. the “Growth Marketing” portfolio program

forms the platform for this in next Station. the “Core Con-

course Buildings Portfolio – Portfolio Sales” program is

being continued.

DB netze enerGy

in the DB netze Energy business unit we want to expand

the supply of our customers with energy services further. in

particular, we see additional potential for opportunities by

offering consulting services for optimizing the technical

effectiveness of energy procurement and distribution.

in the electric mobility futures market, DB netze Energy

wants to support the CO₂-free travel chain by providing

DB customers with recharging points and green energy in

the area of stations in line with demand. in the context of

further market preparation, DB netze Energy is involved in

many promotion and pilot projects with companies such as

DB Vehicle Management, Peugeot and Citroën among others

in order to put new products, services and technologies to

the test and bring them to market.

the most environmentally friendly energy is energy

that is not used. it is against this backdrop that DB netze

Energy commits to the further development of energy

saving management in DB Group and offers customers a

variety of services. As a result, CO₂ emissions are prevented

and energy costs are reduced. in the field of stationary

energy, DB netze Energy is conducting energy and media

audits in particular in factories, production sites, office

buildings, area projects and other real estate.

risk report

there have been methodical changes in the drafting of risk

reports for DB Group in the year under review. the main

change results from the reference point switching from the

previous year’s actual figures (“status quo”) to the respec-

tive current plan. As a result, risks are defined as potential

deviations from the plan. As part of the annual planning

process, it is decided which risks will be incorporated into

the plan.

Key characteristics of internal control and risk management with regard to Group accounting processesOur risk management system is complemented by a Group-

wide internal control system (iCS) that also includes the

accounting process. this iCS is based on the criteria set out

by the Committee of Sponsoring Organizations of the tread-

way Commission (COSO) in its “internal Control – integrated

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framework” guidelines. the COSO model is a widely recog-

nized theoretical framework that classifies internal control

systems into five levels for individual assessment. Based

on this, our internal accounting-related iCS centers on basic

control mechanisms such as automated and manual recon-

ciliation, the separation and clear definition of functions, and

compliance with Group-wide guidelines and work processes.

in addition to the instruments listed above, the control

mechanisms governing the accounting process include a

Group-wide, uniform reporting system based on standard

Oracle Hyperion financial Management (HfM) software and

regular updating of the relevant accounting directives and

accounting systems.

the auditing activities of the intra-Group auditors, which

represent a key element of our control mechanisms in the

form of a process-independent monitoring instrument, are

focused on evaluating the adequacy and effectiveness of our

iCS. Property, plant and equipment as well as inventories are

also audited. in addition to these measures, the Audit and

Compliance Committee and the Supervisory Board monitor

the accounting process and the effectiveness of the internal

control system.

in line with a binding schedule, the issues relevant to this

are dealt with in the decentralized accounting departments,

which for the most part use standard software in line with

ifRS principles and in compliance with Group-wide, uniform

procedures. these are then transmitted to the centralized

HfM software.

the management of the companies included in the

consolidated financial statements and of the individual

business units verifies a number of points, including the

correctness of data relevant to the financial statements,

using a quarterly internal reporting process. Confirmation

is also given that the executives responsible have imple-

mented the centrally defined internal control systems for

reporting and, where appropriate, have supplemented

these with their own documented control and monitoring

instruments.

Key risk categories profit risks

Markets

Market risks result from overall economic development as

well as changes in the competitive situation.

Demand for our mobility services and, in particular, for

our transport and logistics services is dependent on overall

economic development, among other things. Economic

growth fuels the megatrends underlying our strategy in our

operating markets. this means that macroeconomic shocks

such as economic and financial crises can have a negative

impact on our business. throughout the Group, we are

responding to risks arising from changes in demand from

our customers or from shifting transport flows by intensive

market observation and the continuous expansion of our

portfolio. in order to respond to risks resulting from chang-

ing legal conditions on either a national or international

level, we take an active part in the discussions and debates

that take place ahead of this type of change.

Passenger transport is particularly affected by the devel-

opment of key economic parameters such as disposable

income and unemployment levels. Risks arising from the

sovereign debt crisis could have negative effects (particularly

in the form of spending cuts), primarily on our activities in

the DB Arriva business unit.

DB Bahn long-Distance is facing stiff intermodal and

intramodal competition, particularly from motorized indi-

vidual transport, which is our main competitor. the liber-

alization of long-distance bus transport led to the further

intensification of the competition. in order to strengthen our

competitive position, we are continuously improving our

service and performance [ page 122 ff. ]. We closely monitor our

punctuality record [ page 122 f. ] and we use special offers as a

means of improving our customers’ perception of our prices.

We are also continuing to invest extensively in our vehicle

fleet. Restrictions in product quality could also lead to the

planned price measures only being implemented to a limited

extent or not at all.

there is intense competition in regional transport

throughout Europe for securing long-term contracts. the

market volume here is greatly determined by the financial

situation of the contracting organizations. in Germany,

this scope is regulated in the Regionalization Act up to the

year 2015.

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there is also the risk of a loss of tender processes. to be

able to succeed in this market, we are constantly working

to optimize our tender management and our cost structure.

in this case, we run the risk of planned new/reacquisitions

of transport contracts not taking place. What is more,

depending on the contract type, there is also the risk of a

loss of passengers without the possibility of being able to

adapt the operating program.

the most important factor for the rail freight transport

business is demand for the transport of consumer goods,

goods related to iron, coal and steel (Montan), mineral oil

products, chemical products and building materials. Demand

for these goods is subject to economic fluctuations. Struc-

tural changes to our customers’ production structures should

also be taken into account, as our customers are frequently

faced with international competition. in addition, there is

extreme intramodal and intermodal competitive pressure.

this situation is exacerbated by the increasing importance

of low-cost truck fleets from the newer Eu member states in

the market. the increasing competition intensity affecting

multiple modes of transport may lead to a loss of margins.

We are reacting to the situation with measures aimed at

further improving efficiency and lowering costs. We are

also optimizing our services and integrating our rail freight

services into a comprehensive range of logistics services.

Competition could also be further tightened through longer

trucks being authorized.

Our customers’ economic development dictates the need

for storage and transport services, which in turn affects our

freight forwarding and logistics businesses. Our activities

are affected in particular by the very competitive nature of

the market. We are responding to this by further expanding

our networks and improving our cost structures, services

and it infrastructure.

the development of demand in rail infrastructure is

dependent on rail transport’s ability to compete on the

upstream transport markets.

Production and technology

Our activities as a train operating company are based on a

technologically complex, networked production system. in

general, we try to combat the risk of potential operational

disruptions through regular maintenance and by taking

on qualified employees, coupled with continuous quality

assurance and improvement of our processes. the nature of

rail transport as an open system means that certain factors

(such as accidents, sabotage and theft) over which we have

only limited influence could have a negative impact on

operations. Our efforts in such cases focus on minimizing

the potential effects. However, this could also result in cost

risks from countermeasures.

the availability and the condition of rail infrastructure

are significant criteria for the performance capabilities of rail

transport. intensive construction activity in the network has

an effect on the production quality of the transport compa-

nies (in particular operating program and punctuality), that

cannot be fully compensated.

if the quality of long-distance transport suffers, this

has an impact on service quality and can lead to the loss of

customers. in regional transport, there is the additional risk

of penalties imposed by the relevant ordering organization

if trains are canceled or punctuality targets are missed.

Sufficient availability of our vehicle fleet [ page 147 ] is es-

sential for our operations. Significant reductions in vehicle

availability pose a threat to operating schedules. We try to

minimize this risk by taking preventative actions and also

by minimizing the consequences should it happen, such as by

providing replacement vehicles or by organizing replacement

transport services.

in regional transport, a risk can arise from the redundancy

of vehicles following the expiry or awarding of a new transport

contract. As a countermeasure, alternative possible uses are

checked continuously.

Punctuality [ page 160 ] is a key factor for rail freight transport

customers when selecting a mode of transport. in addition

to this, irregularities can occur during operations, such as

customs violations and theft. We combat these risks with

measures such as employing qualified customs coordinators

and using a system of immediate reporting for tax assessment

notices.

the range and quality of our services depend to a signi-

ficant extent on the availability and reliability of the pro-

duction resources used, intermediate services procured and

the quality of our partners’ services. We therefore keep up

an intense dialog with our suppliers and business partners on

the subject of quality. this is of particular importance in the

vehicle industry.

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the technical production resources used in rail transport

must comply with applicable standards and requirements,

which are subject to change. As a result, we may receive

technical complaints concerning our vehicles. this leads to

the risk that we may only be permitted to use individual

series or cars under certain conditions, such as limited

speeds, shorter intervals between maintenance or reduced

wheel set loads. in addition, we cannot accept newly pur-

chased vehicles that have flaws or for which the necessary

vehicle certification has not been granted.

Regulatory risks

Changes to the legal framework at national or European level

could pose risks to our business. this general regulatory

risk could result in tangible negative effects on revenues and

profit.

DB Group provides rail transport services in a regulated

market. these regulations govern the individual components

of the pricing systems, and general terms and conditions

applied by our rail infrastructure companies. Risks in this

regard are complaints and intervention. Measures that

threaten or even prevent DB Group from attaining reason-

able returns in our infrastructure business units (such as

intervention in pricing systems) make it more difficult to

control these activities from a business perspective and can

therefore threaten financing contributions by DB Group to

capital expenditures in infrastructure.

IT/telecommunications

to an increasing extent, the business processes of DB Group

are dependent on highly available and secure information

technology. the majority of Group business processes are

it-dependent, and this proportion will increase steadily in

the future. Our forward-looking it management ensures that

the necessary security measures are in place for our it-based

business processes. A vital method for this is it risk man-

agement for applications, infrastructure and services. this

systematically analyses, assesses and eliminates or mini-

mizes the relevant risks. Residual risks are documented,

reported to the competent department as applicable, and

monitored. Examples of these risks would be interruptions

in the availability of it systems or unauthorized third parties

accessing customer data.

loss of income and damage to image can result from

credit card fraud or in the event of the online sales channel

malfunctioning. in order to avoid critical gaps in security,

appropriate countermeasures (such as firewalls, encryption

and closed servers) have been implemented. in order to

ensure high availability of it operations, we use redundant

operational and data backup systems distributed across

different locations, fail-safe systems, outsourced tape

backup and separate administration structures. Our wide

area network (WAn) in particular is redundantly designed

wherever it security and business continuity require this.

these measures reduce the risk of it system failures and

avoid large-scale disruptions, ensuring that mission-critical

business processes are operational at all times.

Personnel risks

Our employees are essential to our continued success in the

future. Our compensation systems and staff development

programs and measures aim to retain and motivate em-

ployees. undesired employee turnover is at a very low level.

the current age structure within DB Group will mean a

significant increase in staff requirements in the future. At

the same time, demographic changes will make it harder to

recruit new staff. Competition to attract highly qualified

specialists and executives is also increasing steadily. We are

rising to both of these challenges by maintaining close ties

with schools and universities, and with specific recruitment

measures that are further strengthened by the expansion of

our recruitment organization.

Our staffing cost structure in relation to that of our com-

petitors is a crucial factor in allowing us to remain compet-

itive. Burdens, such as higher collective wage agreements

compared to our competitors, have a negative impact on our

competitive position. We are trying to minimize this through

concluding collective branch agreements.

Procurement/energy market risks

Purchase prices for raw materials, energy and transport ser-

vices vary according to market conditions. this means that

depending on the market conditions and our competitive

situation, it may not be possible or may only be possible

to a very limited extent to pass increased costs on to the

customer in the short term. this in turn has a negative impact

on margins.

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We respond to the risk of increasing energy prices by using

appropriate derivative financial instruments [ page 264 ff. ].

A risk arises from the development of energy prices and

the related development of the energy index used to calculate

the price adjustment for energy.

to date, DB Energy has not paid any allocations in accor-

dance with the German Renewable Energies Act (EEG) to

the transmission system operators for energy produced in

the traction power generation stations. this will change in

future. the amount of future EEG surcharges is a matter of

great uncertainty, particularly with regard to the price

trends on the electricity exchange, the increase in EEG

facilities and not least through the formation of policies.

noticeable train-path price increases by national infra-

structure operators outside of Germany (for example in

france) result in costs for the use of infrastructure rising

significantly. Due to the intensity of competition, it is not

always possible to pass on cost increases.

risks with accountinG provisions

these include all risk factors for which an accounting pro-

vision has been booked, from a value of € 250 million per

individual provision.

A Pending losses of transport contracts: negative contri-

butions to earnings are expected for individual trans-

port contracts. the provision takes the discounted

future losses from these contracts into account. the

countermeasures include cost reductions and an

increase in farebox revenues.

A Closure, decommissioning and disposal of Gkn: the

provision affects the proportionate decommissioning

provisions for the neckarwestheim nuclear Power Station

(Gkn). the cost for the closure and the decommissioning

of the facility as well as the disposal of fuel are taken

into consideration. the provision is set by the operator

Energie Baden-Württemberg (EnBW).

A Demography collective agreement: through the expan-

sion of restrictions to the termination of employment

contracts, the demography collective agreement [ page 133 ]

leads to higher staff numbers in DB Group.

A Rehabilitation of existing ecological burdens: the costs

for DB AG’s remedial action obligations to remediate

ecological burdens are taken into account. to ensure

that investigating and carrying out remedial action is

systematic, legally compliant and cost-optimized, we

have introduced a soil decontamination and landfill shut-

down program as well as a sewerage network program.

A Real estate valuation: it is expected that the recognized

figures will not be achieved for parts of the real estate

portfolio.

A Receivables portfolio and inventories: provisions have

been formed accordingly for potential impairments on

receivables and inventories.

Other risks infrastructure financinG risks

As a key element of the German Rail Reform Act the federal

Republic of Germany has enacted a constitutional obliga-

tion to finance the capital expenditures in rail infrastructure.

the main criterion is the provision of sufficient amounts of

funding, but also the ability to plan the financing available

in the future. in addition to the risk of a lack of available

funds for financing capital expenditures, there is also a risk

of insufficient funds for the adequate maintenance of the

existing network. the economic sustainability of capital

expenditures or financial contributions to capital expendi-

ture projects funded with DB funds is essential if we are to

ensure DB Group’s ability to invest in the long term.

We have a service and financing agreement with the

federal Government that sets out the financing of the

existing network until 2015. for the future, an adequate

minimum level for replacement capital expenditures must

be agreed on and then be integrated into the contractual

agreement.

However, to ensure the long-term competitiveness of

rail as a mode of transport, sufficient financial means must

be available to ensure systematic new construction and

expansion as well as to eliminate bottlenecks (requirement

plan capital expenditures). Government funding for these

capital expenditures is factored into our multiyear business

planning, although no final agreements have been made in

this regard as yet. there is also the risk that the govern-

ment could reclaim its funding on the basis of an audit of

exactly how the federal funds were used.

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project risks

Our measures involve not only in part huge capital expen-

diture volumes, but also a large number of highly complex

projects. Changes in the legal framework, delays in imple-

mentation or necessary adjustments during these projects,

which often last for several years, can lead to project risks. the

networked production structure means that these can often

affect a number of business units. Price increases for purchased

services or construction services can also have a negative

impact. We keep up to date with this by closely monitoring

projects. this applies in particular to large, centrally managed

projects. Significant cost risks became clear during the year

under review in conjunction with the Stuttgart 21 project

[ page 168 ], which led to an increase in funding by € 2.0 billion

to € 6.5 billion.

poLiticaL risks

Political risks particularly affect the tightening of existing

standards and regulations affecting the railways. the structure

of DB Group may also expose it to regulatory risks. these

could arise on a national or a European level.

financiaL risks

We use original and derivative financial instruments as one

means of countering interest rate, currency and energy price

risks. these instruments are discussed in the notes. there is

a risk that these hedging measures will not pay off, or not in

the way expected.

to prevent the risk of counterparty default risk from

financial and energy derivatives, we conclude credit support

agreements (CSA) for all hedges.

the expansion of our international business brings cur-

rency risks with it. this is relevant for the uS dollar and the

pound sterling, among others.

Pensions and similar retirement benefit obligations are

partially covered by plan assets from stocks, real estate,

fixed-income securities and other investments. Value losses

in these assets directly reduce the cover of pension obliga-

tions by plan assets, potentially resulting in the company

having to provide additional cover.

in addition, there exist potential risks from back-tax pay-

ments from tax audits that are in progress.

compLiance risks

Compliance with current laws, corporate guidelines and

recognized regulatory standards is the task and duty of

every DB Group employee. it is the mission of our Compli-

ance department [ page 64 ff. ] to ensure compliance with

such criteria.

large-scale capital expenditures mean that the infra-

structure division is exposed to a significant risk of becoming

the target and victim of corruption, cartel agreements or

fraud. As a third-party provider of financing, the federal

Government is placing high demands on DB Group with its

anti-corruption guidelines. in order to provide managers and

employees with targeted information on matters concerning

compliance, and to raise their awareness of the matter, the

infrastructure division launched a special information cam-

paign in December 2012.

LeGaL anD contractuaL risks

legal risks exist in the form of damage claims and legal

disputes, among other things. these often affect construc-

tion projects and real estate or environmental issues. the

risk also exists that certain long-term transport contracts

could become uneconomical to operate as a result of unfore-

seeable cost increases or other factors. We are working to

counteract this with cost-cutting and income-boosting

measures.

Provisions have been made for legal and contractual risks

based on an assessment of their probability of occurrence.

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EVEntS AftER tHE BAlAnCE SHEEt DAtE

Cartel proCeedings due to tiCket sales

the federal Cartel Office opened proceedings against DB AG

on grounds of the suspected abuse of a market-leading

position in the sale of tickets for rail passenger transport. in

this context, the federal Cartel Office has sent a questionnaire

requesting information on tariff and sales cooperations with

other train operating companies as well as sales commissions

and sales channels. We will cooperate fully with the federal

Cartel Office. the federal Cartel Office has also requested

information about market conditions and the behavior DB AG

is accused of from other local /long-distance rail passenger

transport companies as well as from the collective bargaining

association of federally owned and non-federally owned

railway companies in Germany.

plaCeMent of four Bond issues

At the beginning of 2014, we issued four bonds with a total

volume of € 560 million through the Group’s financing com-

pany, DB finance.

Business aCtivities in Malta and gozo sold

in January 2014, we sold the activities of DB Arriva in Malta

and Gozo [ page 154 ] to the country of Malta.

regulations regarding infrastruC-ture finanCing are still pending

there was still no specification in the Federal budget [ page 169 ]

for the financing for rail infrastructure at the time of publi-

cation. We assume that an appropriate proportion will be

available for maintaining the facilities of the existing network

and that a higher level will be available from 2017. this

increased budget item should be reinforced by a dividend

that will increase over time from 2015 and be completely

allocated to financing infrastructure. As a result, it is therefore

also ensured that the after-tax results from the infrastructure

companies flow completely back into the infrastructure. in

terms of use as DB funds, the distribution and repayment as

investment grants have the advantage of capital commitment

being saved and additional pressure on infrastructure prices

being avoided.

from our point of view, the financial conditions of the

coalition contract provide leeway for the quality and the

availability of the existing network to be retained and the

risk of a devaluation of the recognized infrastructure assets

to be avoided. the most important requirements are that an

appropriate proportion of the total financing is allocated to

rail infrastructure, that a higher level is available from 2017,

that dividends fully flow back into infrastructure, and that

greater budget flexibility is achieved in the long-term plan-

ning and financing as well as in the permeability between

the existing network and the requirement plan, if financing

for the requirement plan is not ordered due to project delays.

the final budgetary and contractual bases for infrastruc-

ture financing can have a considerable effect on the position

and development of DB Group, depending on what is speci-

fied. Should major aspects of the requirements presented

not materialize, it cannot be ruled out that there will be

effects on the value of the assets recognized in the infra-

structure, adverse effects on quality and availability as well

as the necessity to consider a long-term reshuffling of rail

infrastructure. in this case, an impairment test [ page 222 f. ]

should be carried out over the course of the year as soon as

the financial effects can be assessed with sufficient certainty

(triggering event).

Events after the balance sheet dateA A

Regulations regarding infrastructure financing are still pending

Four bonds issued

Arriva Malta sold

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194 Outlook194 Future direction of DB Group194 Economic outlook195 Anticipated development of the relevant markets197 Anticipated development of the procurement and financial markets197 Anticipated development of important business conditions197 Anticipated development of DB Group199 Anticipated capital expenditures199 Anticipated financial position200 Overall statement of the Management Board regarding the economic development of DB Group

194 Deutsche Bahn Group 2013 AnnuAl REpORt

Future direction oF dB Group

Future business policyWe want to assert our market positions in the 2014 financial

year and stimulate organic growth in our business units. In

our DB2020 strategy we defined the strategic directions

for the coming years and we have been pursuing these con-

sistently. We do not intend to make any fundamental changes

to our business policy in the 2014 financial year.

Future strategic focusOur strategy remains focused on the long-term trends pre-

vailing in the markets in which we are active. DB Group’s

strategic objective is laid down in our DB2020 strategy,

which we continued to implement in the year under review.

Our objective is to ensure sustainable business success and

social acceptance with an entrepreneurial approach based

on sustainability.

Future sales marketsOur opportunities for growth in the German passenger trans-

port market are limited due to the high level of competition

and restrictions imposed by antitrust laws. As a result, we are

primarily focused on defending our strong market position

and strengthening the competitive position of the railways

in an intermodal context. Our potential for growth in the

area of passenger transport services lies in other European

countries and in cross-border long-distance rail passenger

transport services.

In the area of rail freight transport, our focus continues

to be on the European market. We are well positioned in all

of the central European corridors and can offer service con-

nections to locations as far afield as China.

We also do not expect there to be any significant changes

in the freight forwarding and logistics business in the 2014

financial year. DB Schenker logistics is already well repre-

sented in all key markets and regions.

economic outlook

the outlook for economic development in 2014 is based on

the assumption of generally stable geopolitical development.

Anticipated development [%] 2013 2014

GDP World +2.2 <+ 3.0

World trade 1) +2.9 ~+ 5.0

GDP Eurozone – 0.4 ~+ 1.0

GDP Germany + 0.5 >+ 1.5

1) Trade in goods only.

The data for 2013, adjusted for price and calendar effects, is based on the information and estimates available as of February 2014. Expectations for 2014 are rounded off to the nearest half percentage point.

Source: Oxford Economics.

In 2014, economic performance at the global level is ex -

pected to experience stronger growth than in 2013, most

likely as a result of the increasing pace of recovery in the

industrial nations – in particular, the united States and large

parts of Europe. the major emerging markets should experi-

ence growth more or less at the same level as in 2013.

the recovery in the united States is likely to be influenced

first and foremost by domestic demand for consumer and

investment goods, while lower energy costs should increase

the attractiveness of uS locations on a comparison at the

international level. this should generate positive momentum

for the development of the economy as a whole, on both the

demand and the supply side.

Expectations with regard to uS monetary policy will be of

particular interest from the perspective of global economic

growth: the Fed is expected to further restrict inflows of

liquidity in 2014, with the resultant reduction in capital giving

rise to risks affecting the development of the emerging mar-

kets, in particular. In spite of this, economic growth in Asia

in 2014 should be in line with that experienced in 2013. the

Chinese government is addressing the ongoing concerns as

to the stability of the economic and political situation in the

country by means of extensive reform of its market economy

and social policy.

OutlookA A

Improvement of economic growth in 2014

Earnings development is expected to be stable in 2014

Outlook remains uncertain

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195Group manaGement report OutlOOk

the Eurozone is expected to experience continued recovery

in 2014, however strong economic growth is unlikely in light

of ongoing structural problems.

While growing demand at the global level should en -

cour age enterprises in the Eurozone to continually expand

production in 2014, there is unlikely to be any lowering of

unemployment figures in most of the crisis-hit countries in

2014. the propensity to invest is expected to vary among

the members of the currency union, in some cases to a sig-

nificant extent. In countries such as Spain, France and Italy,

the existing uncertainty as to future economic developments

is set to persist, with the result that capital expenditures

should decrease or increase only slightly. In countries with

com pet itive industrial structures in place, such as Germany,

investments should increase significantly, and in Eastern

Europe growth is expected to rise in line with that in Western

Europe.

Germany is expected to benefit from greater momentum

generated by the global economy in 2014 than was the case

in the previous year, which should stimulate GDp growth.

pri vate consumption is set to remain a reliable driver of

growth in 2014, while foreign trade is expected to generate

greater positive effects. the prospects for German goods

in important sales markets should improve in the wake of

the gradual recovery within the Eurozone and rising GDp

growth rates in the Anglo-Saxon countries.

AnticipAted development oF the relevAnt mArkets

Passenger Transport


| German passenger transport market (based on pkm) + 1.1 ≤ + 1.0 to + 1.5

The data for 2013 is based on the information and estimates available as of February 2014. Expectations for 2014 are rounded off to the nearest half percentage point.

In the German passenger transport market, the volume sold

is once again expected to increase by up to 1.5 % in 2014,

benefiting from the robust economic situation in Germany

as compared to other European countries, with rising em-

ployment figures and greater disposable income as well as

falling fuel prices, among other things. these factors will

also serve to drive the development of motorized individual

transport as the dominant mode of transport in the market.

We expect the German domestic air transport sector to expe -

rience a positive baseline effect in 2014 arising as a result of

the fall in demand experienced in 2013. In light of the prob-

able retention of air transport tax and continued consolida-

tion efforts on the part of airlines, a moderate increase in the

volume sold would appear to be realistic.

public road passenger transport services are once again

set to experience a moderate decline in performance. Demo-

graphic changes are likely to result in a decline in regional

bus services, while positive momentum is likely to be gener-

ated by the dynamic growth in long-distance bus services.

We expect there to be a considerable rise in demand for

long-distance rail passenger transport services, with one of

the major growth drivers in this regard being recovery effects

following the flood. Improvements in the overall economic

environment should furthermore have a positive impact on

the volume sold.

In Europe, no significant improvement in the labor market

situation or in the development of incomes is likely to occur

in 2014, despite signs of economic recovery. As in previous

years, developments in the European rail passenger trans-

port market are expected to vary from one region to another.

Transport and Logistics


German freight transport market (based on tkm) + 1.9 + 3.0 to + 3.5

European rail freight transport market (based on tkm) – 0.5 + 1.0 to +2.0

European land transport (based on revenues) + 0.8 + 3.0 to + 3.5

Global air freight (based on t) + 1.0 ~+2.0

Global ocean freight (based on TEU) +2.0 + 3.0 to + 4.0

Global contract logistics (based on revenues) + 5.5 ~+ 7.0

The data for 2013 is based on the information and estimates available as of February 2014. Expectations for 2014 are rounded off to the nearest half percentage point.

In view of the stimulus for growth expected to arise out of

pro duction and trade, the German freight transport market

should experience an increase in demand for transport ser-

vices of about 3.0 to 3.5 %. In spite of the improved economic

environment in Europe, ongoing structural problems mean

that the outlook remains uncertain, and, with signs of only

gradual recovery, an expected increase in factor costs and

sustained (price) competition, market players are likely to

face further challenges in 2014.

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the development of the rail freight transport sector in Ger-

many should be bolstered in 2014 by the expected recovery

of the important iron, coal and steel (montan) industry,

in particular, while dy nam ic foreign trade is expected to

contribute significantly to the growth of combined trans-

port services, which should result in an improvement in

performance slightly ahead of overall market growth.

the signs of recovery in road freight transport which were

already discernible in the second half of 2013 are expected

to pick up pace and result in significantly improved perfor-

mance for this sector.

Inland waterway transport is assumed to experience only

moderate growth in 2014 as compared to other modes of

transport. After the previous year, which was influenced by

baseline effects, it is expected that waterway transport will

return to the below-average growth trajectory already evident

prior to the crisis in 2009.

In the European rail freight transport context, the out-

look for 2014 appears to be cautiously positive, however the

anticipated recovery of the economy of the course of the

year and the positive baseline effects expected to arise out

of the weaker conditions prevailing in previous years should

result in more dynamic growth in demand. this is once more

expected to vary from one region to another.

In the European land transport market of relevance for

DB Schenker, revenues are expected to increase by 3.0 to

3.5 % in 2014 on the basis of the anticipated economic recov-

ery, with the greatest growth being experienced in Eastern

Europe. pressure on margins is likely to decrease in 2014 in

light of the anticipated recovery of the market, and price

levels are also expected to recover in the medium term in

line with consistent market growth.

We expect the global air freight market to recover slightly in

2014 and to experience growth in the amount of about 2 %,

and sufficient tonnage should again be available in 2014 in

light of the anticipated increase in belly capacity in particular

(above all due to deliveries of larger passenger aircraft). It

remains to be seen whether freight rates will remain at the

high level attained in the fourth quarter of 2013.

Ocean freight services are expected to experience growth

of about 3.0 to 4.0 % in 2014. the anticipated rise in demand

will not be sufficient to make full use of the projected

increase in capacity resulting from new deliveries of shipping

vessels, however the resultant pressure on freight rates

could be counterbalanced by measures on the part of the

shipping companies (scrapping of older vessels or laying up

of tonnage).

We expect accelerated market development with market

growth of about 7 % in the contract logistics/SCM business

line in 2014, with the major drivers here being the antic -

ipated recovery of the global economy, the related assumed

rise in outsourcing rates and the increase in complex solu-

tions in our key industries.

InfrastructureIn the passenger transport market in 2014, we expect there

to be an increase in the volume produced, primarily as a

result of multiple orders by public transport authorities in

the context of newly awarded tenders for regional rail pas-

senger transport services. In addition, due to the only mod-

erate recovery of the economy, we also anticipate that there

will not be any significant growth in the volume produced in

the rail freight transport context.

Owing to the increase in regular service and the opening

of new stations (in particular, the City tunnel leipzig), we

expect there to be a slight increase in the number of station

stops.

leasing prospects should improve slightly as a result of

the positive market environment in the retail and food ser-

vice sectors and the stable situation in the private consump-

tion context. Furthermore, retail sales in Germany are likely

to continue to increase to a moderate extent.

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AnticipAted development oF the procurement And FinAnciAl mArkets

Anticipated development of the procurement marketsAs in the previous year, we do not expect to encounter any

major bottlenecks on the procurement side during the 2014

financial year. Developments in the Middle East and oil pro-

duction in the united States are likely to continue to have a

significant impact on the market, with the diminishing

dependence of the united States on oil imports having far-

reaching geopolitical consequences. Overall, we anticipate

a moderate rise in energy and raw material prices.

Anticipated development of the financial marketsIn 2014, developments in the financial markets are likely to

be greatly influenced by the monetary policy decisions of

the major central banks in the united States, Europe and

Japan.

the current yield forecasts for the course of the 2014

financial year do not indicate that any major changes in the

yields for ten-year German government bonds (German

Bunds) are likely up to the end of 2014.

the uS dollar should once again perform more strongly

during the course of 2014, while possible setbacks with

respect to the consolidation of the debt of individual Euro-

pean countries or a slowing-down of reform efforts could

exert pressure on the euro and at the same time result in a

widening of yield spreads within the currency union.

AnticipAted development oF importAnt Business conditions

Within the scope of transport policy and the regulatory envi-

ronment, the legislative initiatives of the Eu Commission

relating to the fourth railway package [page 102 ] and prepara-

tions for the Railway Regulation Act [ page 104 ] could have a

noticeable impact on our business operations in the future.

In view of the current plans, however, we do not expect any

concrete measures to be implemented during the 2014 finan-

cial year.

AnticipAted development oF dB Group

the development as presented below is based on the as -

sump tions made in our medium-term planning regarding the

ex pected market, competition and environmental develop-

ments as well as the successful implementation of planned

measures. these assumptions and estimates are subject to

an increasing degree of uncertainty with an increasing time

horizon. Given that only the budget for the 2014 financial

year and no medium-term planning had yet been approved

by the Supervisory Board at the time of the preparation, this

report does not contain any projections with respect to the

2015 financial year.

Key non-financial figures

Anticipated performance development 2013 2014

Volume sold rail passenger transport (Germany) (pkm) 80,244 + 1.5 –2 %

Volume sold rail freight transport (tkm) 104,259 ~+ 4 %

Volume produced on track infrastructure (trkm) 1,035 ~+ 0.5 %

Shipments in European land transport (thousand ) 95,543 + 3 – 4 %

Air freight volume (export) (thousand t) 1,092 + 5 – 6 %

Ocean freight volume (thousand TEU) 1,891 + 7–8 %

the volume sold in the DB Bahn long-Distance and DB Bahn

Regional business units should once more increase overall in

the 2014 financial year as a result of improvements in the

quality of the services provided and the elimination of the

negative effects in the wake of the floods. While DB Bahn

long-Distance should experience some growth, the volume

sold at DB Bahn Regional rail is likely to remain stable due to

lost tenders.

train-path demand should increase slightly once more in

the 2014 financial year following a decline in the year under

review due to economic developments, while the trend to -

wards a continual increase in train-path demand on the part

of non-DB Group customers is set to persist.

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Further improvements in economic and market expectations

are also reflected in the expectation of improved perfor-

mance by DB Schenker logistics. We expect all lines of busi-

ness to experience growth surpassing that of the market.

the degree of punctuality ¿ achieved by our rail transport

services should improve once more in the 2014 financial year

in the wake of improvements in the quality of those services

and the elimination of the negative effects of the floods. the

extensive construction work being carried out through out

the network is likely to have a negative impact.

the second DB Group-wide employee survey will be con-

ducted in the 2014 financial year, and we anticipate a slight

improvement in the level of employee satisfaction † in light of

the numerous measures which have been implemented by way

of follow-up to the first employee survey carried out in 2012.

We have already made considerable progress in improving

our employee attractiveness † in the year under review and

expect to see a stable development in the 2014 financial year.

With regard to the environmental dimension of our strat-

egy, the numerous measures which have already been initi-

ated should enable us to continue to make progress in

reducing our CO₂ emissions ¥ in the 2014 financial year.

Financial position

Anticipated development [€ million] 2013 2014

Revenues adjusted 39,119 ~ 41,000

EBIT adjusted 2,236 ~ 2,200

ROCE (%) 6.8 6.0 – 6.5

Redemption coverage (%) 20.5 ~ 20.0

Following the poor development recorded in the year under

review, we anticipate that the financial position will develop

in a generally stable manner in the 2014 financial year. In spite

of a noticeable increase in revenues across all business units,

operating profit is likely to remain at the previous yearʼs level.

the lionʼs share of the expected growth in revenues will

probably be realized by the DB Schenker logistics, DB Arriva

and DB Schen ker Rail business units. On the profit side, we

anticipate that DB netze track will be faced with additional

costs as a result of an increase in maintenance expenses and

also a rise in personnel expenses as a result of measures aimed

at retaining operational staff. this should entirely offset the

expected positive development of the DB Bahn Regional,

DB Schenker logistics, DB Services, DB Bahn long-Distance

and DB Schenker Rail business units.

the ROCE is likely to fall slightly as a result of the expected

stable development of adjusted EBIt in conjunction with an

increase in capital employed.

the degree of redemption coverage is also set to decrease

slightly on the basis of the stable development of operating

profit in conjunction with an increase in net financial debt.

Business units

Anticipated development [€ million]

Revenue adjusted EBIT adjusted

2013 2014 2013 2014

DB Bahn Long-Distance 4,083 q 323 q

DB Bahn Regional 8,839 e 777 q

DB Arriva 4,180 q 245 e

DB Schenker Rail 4,843 q 57 q

DB Schenker Logistics 14,857 q 335 q

DB Services 3,184 e 29 q

DB Netze Track 4,769 q 665 w

DB Netze Stations 1,119 q 229 e

DB Netze Energy 2,775 q 71 w

q above previous year’s figure e at previous year’s level w below previous year’s figure


We anticipate an increase in revenues in the DB Bahn long-

Distance business unit in the 2014 financial year. this increase

is likely to be driven by volume and pricing effects and should

also offset the rising level of expenses, with the result that

the adjusted EBIt figure should exceed the level of the pre-

vious year.

DB Bahn Regional

In the DB Bahn Regional business unit, we anticipate that

revenues will develop in a stable manner and adjusted EBIt

will increase slightly in the 2014 financial year.

DB Arriva

the operating profit of the DB Arriva business unit is likely

to remain largely unchanged in the 2014 financial year

despite an increase in revenues, as these will not be sufficient

to entirely offset ex penses arising as a result of the market

environment, which has been highly demanding in some

regards.

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DB Schenker Rail

We expect that the volume sold will rise again in the DB

Schenker Rail business unit in the 2014 financial year. this

should have a positive impact on revenues as well as on

adjusted EBIt, which will also be bolstered by the further

implementation of the “Action plan for Germany.”


We anticipate that the DB Schenker logistics business unit

will once again experience considerable growth driven by

both volume and pricing effects in the 2014 financial year.

this development should also have a positive impact on

adjusted EBIt.

DB Services

In the DB Services business unit, we expect revenues in the

2014 financial year to be on a par with the previous year, and

that there will once again be an improvement on the earnings

side as a result of the restructuring measures introduced.

DB Netze Track

We expect the situation in the DB netze track business unit

to remain difficult in the 2014 financial year. While revenues

should develop in a positive manner as a result of pricing and

volume effects, adjusted EBIt is likely to fall significantly as

a result of increased maintenance and personnel expenses.

DB Netze Stations

In the DB netze Stations business unit, revenues in the 2014

financial year should be greater than in the previous year due

to pricing and volume effects, and this development will also

have a positive impact on operating profit, which is nonethe-

less likely to remain at the previous yearʼs level.

DB Netze Energy

As a result of an expected positive performance on the part of

transport operators, a slight increase in demand for energy-

related services and also pricing effects, external revenues in

the 2014 financial year should exceed those of the previous

year. On the earnings side, we anticipate a fall in adjusted

EBIt as a result of additional expenses primarily due to the

effects of regulation of the electricity grid.

AnticipAted cApitAl expenditures

Anticipated development [€ million] 2013 2014

Gross capital expenditures 8,224 ~9,500

Net capital expenditures 3,412 ~4,500

We will continue on our course of modernization with high

levels of capital expenditures, which are likely to be sig-

nificantly higher in the 2014 financial year than in the year

under review. We will continue to focus our capital expendi-

ture activities on rail infrastructure. In the 2014 financial year,

we intend to invest a total of about € 4.6 billion, in cluding

investment grants, in the renovation and renewal of existing

lines, facilities and technology. Furthermore, the Federal

Government will be providing an additional € 250 million in

the 2014 financial year pursuant to the performance and

Financing Agreement, the term of which has been ex tended

until 2015 [page 168 f.]. Capital expenditures in vehicles are set

to increase once again in the 2014 financial year. this will

also lead to an increase in net capital expenditures.

AnticipAted FinAnciAl position

Anticipated development [€ billion] 2013 2014

Maturities 1.5 1.2

Bond emissions 2.4 ~2.0

Cash and cash equivalents as of Dec 31 2.9 2.9

Net financial debt as of Dec 31 16.4 17.0 –17.5

Efficient liquidity management is once again a top priority

for us in the 2014 financial year. We are focusing on continu-

ally forecasting the cash flow from our 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 the 2014 financial year, we must

redeem financial liabilities (excluding commercial paper and

current bank liabilities) amounting to about € 1.2 billion. the

financing needs will be offset by the issue of public and private

bonds, with roadshows in Europe and Asia planned.

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We anticipate that the structure of the liabilities side of the

balance sheet will remain essentially unchanged despite the

financing measures, as these will primarily serve to refinance

expiring financial debt.

Our debt issuance and commercial paper programs [page 112 ]

remain a source of sufficient financing for our capital market

activities, with our guaranteed credit facilities [page 112 ] serv-

ing as a fallback should our access to the capital markets be

blocked. Our short and medium-term liquidity supply is

therefore also secure in the 2014 financial year. the majority

of our gross capital expenditures in the 2014 financial year

will again be covered by investment grants. net capital

expenditures to be financed by DB Group are expected to

rise considerably in the 2014 financial year, with the result

that it will probably not be possible to entirely fund our net

capital expenditures from internal sources of financing, and

net financial debt as of December 31, 2014 is therefore likely

to be higher than at the end of the year under review.

We will continue our M & A activities in a selective and

focused manner in the 2014 financial year. We do not expect

these activities to have any significant impact on our finan-

cial position in the 2014 financial year.

overAll stAtement oF the mAnAGement BoArd reGArdinG the economic development oF dB Group

Following the negative developments in the year under re view,

the Management Board of DB AG anticipates that DB Group

will develop in an overall stable manner in the 2014 financial

year. On the earnings side, it is likely that any in crease in

revenues will be eroded by infrastructure-related costs and

increased personnel expenses.

We expect to have excellent access to the capital market

in the 2014 financial year.

Our activities are subject to various risks, as elucidated in

the Risk report [page 187 ff.]. With respect to the 2014 financial

year, we consider that our greatest risk exposure relates to

regulatory requirements, our markets as well as production

and technology. In addition, there is an impairment risk as a

result of the low return on capital employed in infrastructure

as well as the risk of structural under-financing in the existing

network.

the Management Board believes that DB Group has taken

all necessary measures to protect itself against existing risks.

We want to further expand our market position and implement

our strategy. We therefore consider the overall outlook for

DB Group in the medium term to be favorable.

ForwarD-lookinG statements

This management report contains statements and forecasts pertaining to the future

development of DB Group, its business units and individual companies. These forecasts

are estimates made based on information that was available at the current time. Actual

developments and results may diverge from the current expectations as a result of the

non-materialization of the assumptions upon which our forecasts are based or the

materialization of risks such as those presented in the Risk report.

DB Group does not assume any obligation to update the statements made within

this management report.

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CConsolidated financial statements

202 Consolidated statement of income202 Reconciliation of consolidated comprehensive income203 Consolidated balance sheet203Assets203 Equity and liabilities204 Consolidated statement of cash flows205 Consolidated statement of changes in equity206 Notes to the consolidated financial statements206 Segment information according to segments CConsolidated financial

statements

202 Consolidated statement of inCome

202 Reconciliation of consolidated comprehensive income

203 Consolidated BalanCe sheet

203 assets 203 equity and liabilities

204 Consolidated statement of Cash flows

205 Consolidated statement of ChanGes in eQUitY

206 notes to the Consolidated finanCial statements

206 segment information according to segments

208 information by regions 208 Basic principles and methods 208 fundamental information 208 Principles of preparing

financial statements 211 structure of the balance sheet and

the statement of income 211 Principles underlying the consoli-

dated financial statements 230 notes to the statement of income 230 (1) Revenues 230 (2) inventory changes and internally

produced and capitalized assets 230 (3) other operating income 231 (4) Cost of materials 231 (5) Personnel expenses and

employees

232 (6) depreciation 232 (7) other operating expenses 233 (8) Result from investments accounted

for using the equity method 233 (9) net interest income 234 (10) other financial result 234 (11) taxes on income 234 (12) earnings per share 235 notes to the balance sheet 235 (13) Property, plant and equipment 238 (14) intangible assets 238 (15) investments accounted for using the equity method 239 (16) deferred tax assets and

liabilities 240 (17) available-for-sale financial assets 240 (18) inventories 240 (19) Receivables and other assets 242 (20) income tax receivables 242 (21) derivative financial instruments 244 (22) Cash and cash equivalents 244 (23) held-for-sale assets

and liabilities 244 (24) subscribed capital 244 (25) Reserves 244 (26) Retained earnings 245 (27) minority interests 245 (28) financial debt 249 (29) other liabilities 249 (30) income tax liabilities 249 (31) additional disclosures relating

to the financial instruments 254 (32) Pension obligations 259 (33) other provisions 261 (34) deferred items 261 notes to the statement of cash flows 261 Cash flow from operating activities

261 Cash flow from investing activities 262 Cash flow from financing activities 262 notes to the segment information 263 explanations concerning

the information by regions 263 information concerning major clients 264 Risk management and

derivative financial instruments 264 management of financial and

energy price risks 264 interest rate risks 264 foreign currency risks 265 energy price risks 266 Counterparty default risk of interest,

currency and energy derivatives 266 liquidity risk 267 maturity analysis of financial liabilities 269 other disclosures 269 (35) Contingent receivables and

liabilities as well as guarantee obligations

269 (36) other financial obligations 270 (37) infrastructure and

transport contracts 270 (38) Related-party disclosures 273 (39) events after the balance

sheet date 274 (40) exemption of subsidiaries from

the disclosure requirements of the German Commercial Code

275 (41) list of shareholdings 287 (42) management Board and

supervisory Board

290 indePendent aUditoR’s RePoRt

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202 deUtsChe Bahn GRoUP 2013 ANNuAl REpoRt

Consolidated statement of income

Jan 1 through Dec 31 [€ million] Note 2013 2012 1)

Revenues (1) 39,107 39,296

Inventory changes and internally produced and capitalized assets (2) 2,649 2,614

Overall performance 41,756 41,910

Other operating income (3) 2,853 3,443

Cost of materials (4) –20,414 –20,960

Personnel expenses (5) – 14,383 – 13,817

Depreciation (6) – 3,228 – 3,328

Other operating expenses (7) – 4,817 – 4,719

Operating profit (EBIT ) 1,767 2,529

Result from investments accounted for using the equity method (8) 3 14

Net interest income (9) – 879 – 1,005

Other financial result (10) – 15 – 13

Financial result – 891 – 1,004

Profits before taxes on income 876 1,525

Taxes on income (11) –227 – 66

Net profit for the year 649 1,459

Net profit attributable to:

Shareholder of Deutsche Bahn AG 657 1,453

Minority interests – 8 6

Earnings per share (€ per share) (12)

undiluted 1.53 3.38

diluted 1.53 3.38

1) Adjusted as a result of the effects of the first-time retrospective application of IAS 19 (revised June 2011) and also reclassification of cost of materials to other operating expenses.

ReConCiliation of Consolidated CompRehensive inCome

Jan 1 through Dec 31 [€ million] 2013 2012 1)


ChangE In ITEms rECOgnIzEd dIrECTly In EquIT y whICh arE nOT rECla ssIFIEd TO ThE InCOmE sTaTEmEnT

Changes due to the revaluation of defined benefit plans 23 –745

ChangE In ITEms rECOgnIzEd dIrECTly In EquIT y whICh arE rECla ssIFIEd TO ThE InCOmE sTaTEmEnT

Changes resulting from currency translation – 131 20

Changes resulting from market valuation of securities – 3 – 8

Changes resulting from market valuation of cash flow hedges –21 –200

Share of result item with no impact on the income statement from investments accounted for using the equity method 0 4

Balance of result items covered directly in equity (before taxes) – 132 – 929

Changes in deferred taxes on result items recognized directly in equity, which are not reclassified to the income statement 16 50

Revaluation of defined benefit plans 16 50

Changes in deferred taxes on result items receivables directly in equity, which are reclassified to the income statement – 41 59

Deferred taxes relating to the change in the market valuation of securities 0 1

Deferred taxes relating to the change in the market valuation of cash flow hedges – 41 58

Balance of result items recognized directly in equity (after taxes) – 157 – 820

Comprehensive income 492 639

Comprehensive income attributable to:

Shareholder of Deutsche Bahn AG 505 636

Minority interests – 13 3

1) Adjusted as a result of the effects of the first-time retrospective application of IAS 19 (revised June 2011).

æ

æ

K

203CoNSolidAtEd bAlANCE ShEEt

Consolidated finanCial statements CoNSolidAtEd StAtEmENt of iNComE

assets

[€ million] Note Dec 31, 2013 Dec 31, 2012 1) Jan 1, 2012 1)

nOn - CurrEnT a ssETs

Property, plant and equipment (13) 37,696 37,630 37,372

Intangible assets (14) 4,115 4,186 4,169

Investments accounted for using the equity method (15 ) 511 529 579

Available-for-sale financial assets (17 ) 11 17 17

Receivables and other assets (19) 138 117 100

Derivative financial instruments (21) 74 178 367

Deferred tax assets (16 ) 1,404 1,584 1,497

43,949 44,241 44,101

CurrEnT a ssETs

Inventories (18) 948 989 991

Available-for-sale financial assets (17 ) 5 4 1

Trade receivables (19) 4,113 4,202 4,094

Other receivables and other assets (19) 889 817 802

Income tax receivables (20) 112 74 46


Cash and cash equivalents (22) 2,861 2,175 1,703

Assets held for sale (23) 5 0 11

8,945 8,284 7,732

Total assets 52,894 52,525 51,833

equity and liabilities

[€ million] Note Dec 31, 2013 Dec 31, 2012 1) Jan 1, 2012 1)

EquIT y

Subscribed capital (24) 2,150 2,150 2,150

Reserves (25 ) 4,190 4,342 5,171

Retained earnings (2 6 ) 8,446 8,356 7,428

Equity attributable to shareholder of deutsche Bahn ag 14,786 14,848 14,749

Minority interests (27 ) 126 130 136

14,912 14,978 14,885

nOn - CurrEnT lIaBIlITIEs

Financial debt (28) 18,066 17,110 16,367

Other liabilities (29) 271 346 350


Pension obligations (32) 3,164 3,074 2,270

Other provisions (33) 2,828 3,049 3,375

Deferred items (34) 1,389 1,510 1,657

Deferred tax liabilities (16 ) 223 244 347

26,284 25,599 24,521

CurrEnT lIaBIlITIEs

Financial debt (28) 1,247 1,503 1,984

Trade liabilities (29) 4,379 4,406 4,312

Other liabilities (29) 3,019 2,986 3,004

Income tax liabilities (30) 147 184 200


Other provisions (33) 2,055 2,113 2,235

Deferred items (34) 752 707 658

11,698 11,948 12,427

Total assets 52,894 52,525 51,833


æ

æ

Consolidated balance sheet

K


Jan 1 through Dec 31 [€ million] Note 2013 2012

Profit before taxes on income 876 1,525

Depreciation on property, plant and equipment and intangible assets 3,228 3,328

Write-ups /write-downs on non-current financial assets 7 1

Result on disposal of property, plant and equipment and intangible assets – 38 – 99

Result on disposal of financial assets – 11 –23

Result on sale of consolidated companies 0 1

Interest and dividend income 1) – 56 –74

Interest expense 1) 935 1,078

Foreign currency result – 5 7

Result of investments accounted for using the equity method – 3 – 14

Other non-cash expenses and income 721 436

Changes in inventories, receivables and other assets 1) 188 – 6

Changes in liabilities, provisions and deferred items 1) – 1,287 – 1,229

Cash generated from operating activities 4,555 4,931

Interest received 32 49

Dividends and capital distribution received 1 1

Interest paid – 639 – 685

Paid (–)/reimbursed (+) taxes on income –219 –202

Cash flow from operating activities 3,730 4,094

Proceeds from the disposal of property, plant and equipment and intangible assets 318 302

Payments for capital expenditures in property, plant and equipment and intangible assets – 8,634 – 8,024

Proceeds from investment grants 4,812 4,566

Payments for repaid investment grants –74 – 154

Proceeds from sale of financial assets 4 0

Payments for purchases of financial assets 0 0

Payments for acquisition of shares in consolidated companies less net cash and cash equivalents acquired – 142 – 14

Proceeds from disposal of investments accounted for using the equity method 0 83

Payments for additions of investments accounted for using the equity method 0 –2

Cash flow from investing activities – 3,716 – 3,243

Proceeds from additions to capital 5 0

Distribution of profits to shareholder – 525 – 525

Distribution of profits to minority interests – 6 – 14

Payments for finance lease transactions – 99 –284

Proceeds from issue of bonds 2,413 2,230

Payments for redemption of bonds –750 – 647

Payments for the redemption and repayment of interest-free loans –220 – 385

Proceeds from borrowings and commercial paper 1 123

Payments for the redemption of borrowings and commercial paper – 114 – 875

Cash flow from financing activities 705 – 377

net changes in cash and cash equivalents 719 474

Cash and cash equivalents as of Jan 1 (22) 2,175 1,703

Changes in cash and cash equivalents due to changes in scope of consolidation 0 0

Changes in cash and cash equivalents due to changes in exchange rates – 33 –2

Cash and cash equivalents as of Dec 31 (22) 2,861 2,175

1) Previous year’s figure adjusted as a result of the effects of the first-time retrospective application of IAS 19 (revised June 2011).

æ

Consolidated statement of cash flows

K

205CoNSolidAtEd StAtEmENt of ChANgES iN Equity

Consolidated finanCial statements CoNSolidAtEd StAtEmENt of CASh flowS

[€ million]

Sub- scribed capital

Reserves

Retainedearnings

Equityattribut-

able to share-

holder of deutsche

Bahn agMinority interests

Total equity

Capital reserves

Currency trans-lation

Fair value valuation of securi-

ties 1)

Fair value valuation

of cash flow

hedges 1)

Revalua-tion of

pensions 2)

Other movements

Total reserves

As of Jan 1, 2012 2,150 5,310 42 9 23 – – 5,384 7,457 14,991 135 15,126

Adjustment of initial figures (IAS 19 R) – – – 4 – – –209 – – 213 –29 – 242 1 – 241

as of Jan 1, 2012 2,150 5,310 38 9 23 – 209 – 5,171 7,428 14,749 136 14,885

+ Capital increase – – – – – – – – – – – –

– Capital reduction – – – – – – – – – – – –

– Reduction of capital reserve – – – – – – – – – – – –

– Dividend payments – – – – – – – – – 525 – 525 – 14 – 539

± Other changes – – – – – – – 12 – 12 – – 12 5 – 7

± Comprehensive income – – 22 – 3 – 142 – 694 – – 817 1,453 636 3 639

thereof net profit for the year – – – – – – – – 1,453 1,453 6 1,459

thereof currency effects – – 22 – – – – 22 – 22 –2 20

thereof deferred taxes – – – 1 58 50 – 109 – 109 – 109

thereof market valuation – – – – 8 –200 – – – 208 – – 208 – – 208

thereof revaluation of defined benefit plans 2) – – – – – –744 – – 744 – – 744 – 1 – 745

thereof share of items not recognized in the income statement from investments accounted for using the equity method – – – 4 – – – 4 – 4 – 4

As of Dec 31, 2012 2,150 5,310 60 6 – 119 – 903 – 12 4,342 8,356 14,848 130 14,978

[€ million]

Sub- scribed capital

Reserves

Retained earnings

Equity attribut-°

°able to share-°

holder of deutsche

Bahn agMinority interests

Total equity

Capital reserves

Currency translation

Fair value valuation of securi-

ties 1)

Fair value valuation

of cash flow

hedges 1)

Revalua- tion of

pensions

Other movements

Total reserves

As of Jan 1, 2013 2,150 5,310 66 6 – 119 – – 12 5,251 8,403 15,804 130 15,934

Adjustment of initial figures (IAS 19 R) – – – 6 – – – 903 – – 909 – 47 – 956 – – 956

as of Jan 1, 2013 2,150 5,310 60 6 – 119 – 903 – 12 4,342 8,356 14,848 130 14,978

+ Capital increase – – – – – – – – – – 14 14

– Capital reduction – – – – – – – – – – – –

– Reduction of capital reserve – – – – – – – – – – – –

– Dividend payments – – – – – – – – – 525 – 525 – 6 – 531

± Other changes – – – – – – – – – 42 – 42 1 – 41

± Comprehensive income – – – 126 – 3 – 62 39 – – 152 657 505 – 13 492

thereof net profit for the year – – – – – – – – 657 657 – 8 649

thereof currency effects – – – 126 – – – – – 126 – – 126 – 5 – 131

thereof deferred taxes – – – – – 41 16 – – 25 – – 25 – – 25

thereof market valuation – – – – 3 –21 – – – 24 – – 24 – – 24

thereof revaluation of defined benefit plans – – – – – 23 – 23 – 23 – 23

thereof share of items not recognized in the income statement from investments accounted for using the equity method – – – – – – – – – – – –

As of Dec 31, 2013 2,150 5,310 – 66 3 – 181 – 864 – 12 4,190 8,446 14,786 126 14,912

1) Equity capital includes deferred taxes.2) Adjusted as a result of the effects of the first-time retrospective application of IAS 19 (revised June 2011).

æ

æ

Consolidated statement of changes in equity

K


Notes to the consolidated financial statements

segment infoRmation aCCoRding to segments

Jan 1 through Dec 31 [€ million]


DB Bahn Regional DB Arriva

DB Schenker Rail

DB Schenker Logistics DB Services

DB Netze Track

DB NetzeStations

Subsidiaries / Other

sum of segments Consolidation

dB group adjusted Reconciliation 6 ) dB group

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012

External revenues 3,933 3,941 8,734 8,820 4,175 3,751 4,495 4,597 14,814 15,335 283 286 1,024 981 428 416 1,233 1,394 39,119 39,521 – – 39,119 39,521 – 12 –225 39,107 39,296

Internal revenues 150 133 105 88 5 6 348 329 43 54 2,901 2,978 3,745 3,735 691 686 3,238 3,123 11,226 11,132 – 11,226 – 11,132 – – – – – –

Total revenues 4,083 4,074 8,839 8,908 4,180 3,757 4,843 4,926 14,857 15,389 3,184 3,264 4,769 4,716 1,119 1,102 4,471 4,517 50,345 50,653 – 11,226 – 11,132 39,119 39,521 – 12 –225 39,107 39,296

Other external income 139 140 228 296 220 209 287 279 273 204 84 103 808 874 146 133 643 545 2,828 2,783 – – 2,828 2,783 25 660 2,853 3,443

Other internal income 52 50 119 111 2 2 44 43 5 4 54 49 224 238 29 26 1,162 1,145 1,691 1,668 – 1,691 – 1,668 – – – – – –

Changes in inventories and other capitalized own work 4 5 45 48 5 17 20 23 8 9 685 779 769 715 21 20 13 10 1,570 1,626 1,079 988 2,649 2,614 – – 2,649 2,614

Total income 4,278 4,269 9,231 9,363 4,407 3,985 5,194 5,271 15,143 15,606 4,007 4,195 6,570 6,543 1,315 1,281 6,289 6,217 56,434 56,730 – 11,838 – 11,812 44,596 44,918 13 435 44,609 45,353

Cost of materials –2,308 –2,339 – 5,419 – 5,458 – 1,461 – 1,308 –2,558 –2,631 – 10,199 – 10,675 –2,109 –2,314 – 1,828 – 1,691 – 507 – 495 – 3,303 – 3,366 – 29,692 – 30,277 9,326 9,346 – 20,366 – 20,931 – 48 –29 – 20,414 – 20,960

Personnel expenses – 849 –796 – 1,863 – 1,805 – 1,793 – 1,610 – 1,562 – 1,535 –2,714 –2,668 – 1,326 – 1,274 –2,249 –2,129 –246 –238 – 1,781 – 1,739 – 14,383 – 13,794 1 1 – 14,382 – 13,793 – 1 –24 – 14,383 – 13,817

Other operating expenses – 472 – 450 – 612 – 661 – 686 – 642 –722 –716 – 1,712 – 1,654 – 361 – 354 – 937 – 901 – 199 – 189 – 1,475 – 1,432 – 7,176 – 6,999 2,467 2,406 – 4,709 – 4,593 – 108 – 126 – 4,817 – 4,719

EBITDA 649 684 1,337 1,439 467 425 352 389 518 609 211 253 1,556 1,822 363 359 –270 – 320 5,183 5,660 – 44 – 59 5,139 5,601 – 144 256 4,995 5,857

Scheduled depreciation 1) – 326 – 318 – 559 – 549 –222 – 182 –297 – 302 – 183 – 187 – 182 – 168 – 925 – 927 – 134 – 129 – 147 – 144 – 2,975 – 2,906 40 36 – 2,935 – 2,870 – 91 – 82 – 3,026 – 2,952

Impairment losses recognized /reversed 1) 0 –2 – 1 – 8 0 – 5 2 0 0 – 4 0 – 1 34 – 1 0 0 – 3 –2 32 – 23 – – 32 – 23 –234 – 353 – 202 – 376

EBIT (operating profit) 323 364 777 882 245 238 57 87 335 418 29 84 665 894 229 230 – 420 – 466 2,240 2,731 – 4 –23 2,236 2,708 – 469 – 179 1,767 2,529

Net operating interest income 2) 1 8 – 45 – 50 – 47 – 33 – 89 – 86 – 37 – 37 – 11 – 16 – 399 – 441 – 48 – 61 – 167 – 149 – 842 – 865 – – – 842 – 865 – – – –

Operating income after interest 2) 324 372 732 832 198 205 – 32 1 298 381 18 68 266 453 181 169 – 587 – 615 1,398 1,866 – 4 –23 1,394 1,843 – – – –

Property, plant and equipment 1,563 1,722 5,344 5,096 1,999 1,897 3,107 3,237 1,472 1,445 672 665 19,809 19,846 3,236 3,252 1,192 1,173 38,394 38,333 – 698 –703 37,696 37,630 – – 37,696 37,630

+ Intangible assets 0 0 11 11 1,969 2,012 511 523 1,299 1,301 39 36 187 204 0 0 99 99 4,115 4,186 – – 4,115 4,186 – – 4,115 4,186

thereof goodwill 0 0 6 6 1,420 1,409 459 463 1,065 1,111 0 0 0 0 0 0 13 13 2,963 3,002 – – 2,963 3,002 – – 2,963 3,002

+ Inventories 68 69 139 134 70 61 92 96 39 40 296 337 173 186 0 0 71 66 948 989 – 0 948 989 – – 948 989

+ Trade receivables 129 128 404 377 265 280 529 514 2,429 2,481 194 199 474 582 91 86 747 822 5,262 5,469 – 1,149 – 1,267 4,113 4,202 – – 4,113 4,202

+ Receivables and other assets 3) 1,822 1,678 473 245 825 647 149 127 1,002 1,473 272 163 144 92 3 3 19,567 18,798 24,257 23,226 –23,230 –22,292 1,027 934 – – 1,027 934

– Receivables from financing – 1,803 – 1,658 – 408 – 151 – 593 – 436 –72 – 37 –760 – 1,232 – 183 – 69 0 0 0 0 – 18,860 – 18,195 – 22,679 – 21,778 22,589 21,706 – 90 – 72 – – – 90 – 72

+ Income tax receivables 0 0 0 1 7 14 2 1 21 21 0 0 0 0 0 0 82 37 112 74 – – 112 74 – – 112 74

+ Available-for-sale assets 0 0 0 0 5 0 0 0 0 0 0 0 0 0 0 0 0 0 5 0 – – 5 0 – – 5 0

– Trade liabilities –254 –296 – 819 –790 – 405 – 388 – 481 – 587 – 1,764 – 1,779 –214 –243 – 650 – 673 – 110 – 127 – 830 –789 – 5,527 – 5,672 1,148 1,266 – 4,379 – 4,406 – – – 4,379 – 4,406

– Miscellaneous and other liabilities –269 –260 – 387 – 430 – 348 – 336 – 405 – 420 – 677 – 670 – 136 – 126 –734 – 686 – 88 – 92 – 881 – 895 – 3,925 – 3,915 635 583 – 3,290 – 3,332 – – – 3,290 – 3,332

– Income tax liabilities 0 0 0 0 –72 – 97 – 10 – 11 – 51 – 68 – 1 0 0 0 0 0 – 16 – 14 – 150 – 190 3 6 – 147 – 184 – – – 147 – 184

– Other provisions –74 –79 – 1,027 – 1,037 –207 –208 – 139 –212 –292 – 320 – 87 – 107 –264 – 315 – 48 – 40 –2,745 –2,844 – 4,883 – 5,162 – 0 – 4,883 – 5,162 – – – 4,883 – 5,162

– Deferred items – 328 – 322 – 148 – 122 – 118 – 102 – 12 – 14 –23 – 8 –27 – 3 – 1,210 – 1,341 – 148 – 176 – 131 – 134 – 2,145 – 2,222 4 5 – 2,141 – 2,217 – – – 2,141 – 2,217

Capital employed 3), 4) 854 982 3,582 3,334 3,397 3,344 3,271 3,217 2,695 2,684 825 852 17,929 17,895 2,936 2,906 – 1,705 – 1,876 33,784 33,338 – 698 – 696 33,086 32,642 – – 33,086 32,642

Net financial debt – 1,415 – 1,219 1,520 1,307 995 1,205 1,716 1,828 96 15 186 225 10,556 10,485 1,429 1,406 1,279 1,114 16,362 16,366 – – 16,362 16,366 – – 16,362 16,366

Investments accounted for using the equity method 0 0 5 4 137 144 22 33 10 11 0 0 1 1 0 0 336 336 511 529 – – 511 529 – – 511 529

Result from investments accounted for using the equity method 0 0 0 0 0 3 –7 1 1 2 0 0 0 0 0 0 9 8 3 14 – – 3 14 – – 3 14

Gross capital expenditures 168 173 908 709 275 468 182 371 335 321 248 268 5,333 5,033 617 552 201 220 8,267 8,115 – 43 – 62 8,224 8,053 – – 8,224 8,053

Investment grants received 0 0 –23 – 43 –2 – 1 0 0 0 0 0 0 – 4,253 – 4,071 – 460 – 374 –74 –77 – 4,812 – 4,566 – – – 4,812 – 4,566 – – – 4,812 – 4,566

Net capital expenditures 168 173 885 666 273 467 182 371 335 321 248 268 1,080 962 157 178 127 143 3,455 3,549 – 43 – 62 3,412 3,487 – – 3,412 3,487

Additions to the scope of consolidation 0 0 0 0 208 3 0 2 9 21 0 0 0 0 0 0 0 0 217 26 – – 217 26 – – 217 26

Employees 5 ) 16,564 15,947 36,878 36,959 46,718 39,545 30,925 31,770 64,051 64,199 26,319 26,375 42,206 41,400 4,835 4,797 27,157 26,516 295,653 287,508 – – 295,653 287,508 – – 295,653 287,508

1) The non-cash items are included in the segment result shown.2) Key figure from internal reporting, no external figures.3) Previous yearʼs figures adjusted as a result of the effects of the first-time retrospective application of IAS 19 (revised June 2011).

æ

K

207Consolidated finanCial statements NotES to thE CoNSolidAtEd fiNANCiAl StAtEmENtS

Notes to the consolidated financial statements

segment infoRmation aCCoRding to segments

Jan 1 through Dec 31 [€ million]


DB Bahn Regional DB Arriva

DB Schenker Rail

DB Schenker Logistics DB Services

DB Netze Track

DB NetzeStations

Subsidiaries / Other

sum of segments Consolidation

dB group adjusted Reconciliation 6 ) dB group

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012

External revenues 3,933 3,941 8,734 8,820 4,175 3,751 4,495 4,597 14,814 15,335 283 286 1,024 981 428 416 1,233 1,394 39,119 39,521 – – 39,119 39,521 – 12 –225 39,107 39,296

Internal revenues 150 133 105 88 5 6 348 329 43 54 2,901 2,978 3,745 3,735 691 686 3,238 3,123 11,226 11,132 – 11,226 – 11,132 – – – – – –

Total revenues 4,083 4,074 8,839 8,908 4,180 3,757 4,843 4,926 14,857 15,389 3,184 3,264 4,769 4,716 1,119 1,102 4,471 4,517 50,345 50,653 – 11,226 – 11,132 39,119 39,521 – 12 –225 39,107 39,296

Other external income 139 140 228 296 220 209 287 279 273 204 84 103 808 874 146 133 643 545 2,828 2,783 – – 2,828 2,783 25 660 2,853 3,443

Other internal income 52 50 119 111 2 2 44 43 5 4 54 49 224 238 29 26 1,162 1,145 1,691 1,668 – 1,691 – 1,668 – – – – – –

Changes in inventories and other capitalized own work 4 5 45 48 5 17 20 23 8 9 685 779 769 715 21 20 13 10 1,570 1,626 1,079 988 2,649 2,614 – – 2,649 2,614

Total income 4,278 4,269 9,231 9,363 4,407 3,985 5,194 5,271 15,143 15,606 4,007 4,195 6,570 6,543 1,315 1,281 6,289 6,217 56,434 56,730 – 11,838 – 11,812 44,596 44,918 13 435 44,609 45,353

Cost of materials –2,308 –2,339 – 5,419 – 5,458 – 1,461 – 1,308 –2,558 –2,631 – 10,199 – 10,675 –2,109 –2,314 – 1,828 – 1,691 – 507 – 495 – 3,303 – 3,366 – 29,692 – 30,277 9,326 9,346 – 20,366 – 20,931 – 48 –29 – 20,414 – 20,960

Personnel expenses – 849 –796 – 1,863 – 1,805 – 1,793 – 1,610 – 1,562 – 1,535 –2,714 –2,668 – 1,326 – 1,274 –2,249 –2,129 –246 –238 – 1,781 – 1,739 – 14,383 – 13,794 1 1 – 14,382 – 13,793 – 1 –24 – 14,383 – 13,817

Other operating expenses – 472 – 450 – 612 – 661 – 686 – 642 –722 –716 – 1,712 – 1,654 – 361 – 354 – 937 – 901 – 199 – 189 – 1,475 – 1,432 – 7,176 – 6,999 2,467 2,406 – 4,709 – 4,593 – 108 – 126 – 4,817 – 4,719

EBITDA 649 684 1,337 1,439 467 425 352 389 518 609 211 253 1,556 1,822 363 359 –270 – 320 5,183 5,660 – 44 – 59 5,139 5,601 – 144 256 4,995 5,857

Scheduled depreciation 1) – 326 – 318 – 559 – 549 –222 – 182 –297 – 302 – 183 – 187 – 182 – 168 – 925 – 927 – 134 – 129 – 147 – 144 – 2,975 – 2,906 40 36 – 2,935 – 2,870 – 91 – 82 – 3,026 – 2,952

Impairment losses recognized /reversed 1) 0 –2 – 1 – 8 0 – 5 2 0 0 – 4 0 – 1 34 – 1 0 0 – 3 –2 32 – 23 – – 32 – 23 –234 – 353 – 202 – 376

EBIT (operating profit) 323 364 777 882 245 238 57 87 335 418 29 84 665 894 229 230 – 420 – 466 2,240 2,731 – 4 –23 2,236 2,708 – 469 – 179 1,767 2,529

Net operating interest income 2) 1 8 – 45 – 50 – 47 – 33 – 89 – 86 – 37 – 37 – 11 – 16 – 399 – 441 – 48 – 61 – 167 – 149 – 842 – 865 – – – 842 – 865 – – – –

Operating income after interest 2) 324 372 732 832 198 205 – 32 1 298 381 18 68 266 453 181 169 – 587 – 615 1,398 1,866 – 4 –23 1,394 1,843 – – – –

Property, plant and equipment 1,563 1,722 5,344 5,096 1,999 1,897 3,107 3,237 1,472 1,445 672 665 19,809 19,846 3,236 3,252 1,192 1,173 38,394 38,333 – 698 –703 37,696 37,630 – – 37,696 37,630

+ Intangible assets 0 0 11 11 1,969 2,012 511 523 1,299 1,301 39 36 187 204 0 0 99 99 4,115 4,186 – – 4,115 4,186 – – 4,115 4,186

thereof goodwill 0 0 6 6 1,420 1,409 459 463 1,065 1,111 0 0 0 0 0 0 13 13 2,963 3,002 – – 2,963 3,002 – – 2,963 3,002

+ Inventories 68 69 139 134 70 61 92 96 39 40 296 337 173 186 0 0 71 66 948 989 – 0 948 989 – – 948 989

+ Trade receivables 129 128 404 377 265 280 529 514 2,429 2,481 194 199 474 582 91 86 747 822 5,262 5,469 – 1,149 – 1,267 4,113 4,202 – – 4,113 4,202

+ Receivables and other assets 3) 1,822 1,678 473 245 825 647 149 127 1,002 1,473 272 163 144 92 3 3 19,567 18,798 24,257 23,226 –23,230 –22,292 1,027 934 – – 1,027 934

– Receivables from financing – 1,803 – 1,658 – 408 – 151 – 593 – 436 –72 – 37 –760 – 1,232 – 183 – 69 0 0 0 0 – 18,860 – 18,195 – 22,679 – 21,778 22,589 21,706 – 90 – 72 – – – 90 – 72

+ Income tax receivables 0 0 0 1 7 14 2 1 21 21 0 0 0 0 0 0 82 37 112 74 – – 112 74 – – 112 74

+ Available-for-sale assets 0 0 0 0 5 0 0 0 0 0 0 0 0 0 0 0 0 0 5 0 – – 5 0 – – 5 0

– Trade liabilities –254 –296 – 819 –790 – 405 – 388 – 481 – 587 – 1,764 – 1,779 –214 –243 – 650 – 673 – 110 – 127 – 830 –789 – 5,527 – 5,672 1,148 1,266 – 4,379 – 4,406 – – – 4,379 – 4,406

– Miscellaneous and other liabilities –269 –260 – 387 – 430 – 348 – 336 – 405 – 420 – 677 – 670 – 136 – 126 –734 – 686 – 88 – 92 – 881 – 895 – 3,925 – 3,915 635 583 – 3,290 – 3,332 – – – 3,290 – 3,332

– Income tax liabilities 0 0 0 0 –72 – 97 – 10 – 11 – 51 – 68 – 1 0 0 0 0 0 – 16 – 14 – 150 – 190 3 6 – 147 – 184 – – – 147 – 184

– Other provisions –74 –79 – 1,027 – 1,037 –207 –208 – 139 –212 –292 – 320 – 87 – 107 –264 – 315 – 48 – 40 –2,745 –2,844 – 4,883 – 5,162 – 0 – 4,883 – 5,162 – – – 4,883 – 5,162

– Deferred items – 328 – 322 – 148 – 122 – 118 – 102 – 12 – 14 –23 – 8 –27 – 3 – 1,210 – 1,341 – 148 – 176 – 131 – 134 – 2,145 – 2,222 4 5 – 2,141 – 2,217 – – – 2,141 – 2,217

Capital employed 3), 4) 854 982 3,582 3,334 3,397 3,344 3,271 3,217 2,695 2,684 825 852 17,929 17,895 2,936 2,906 – 1,705 – 1,876 33,784 33,338 – 698 – 696 33,086 32,642 – – 33,086 32,642

Net financial debt – 1,415 – 1,219 1,520 1,307 995 1,205 1,716 1,828 96 15 186 225 10,556 10,485 1,429 1,406 1,279 1,114 16,362 16,366 – – 16,362 16,366 – – 16,362 16,366

Investments accounted for using the equity method 0 0 5 4 137 144 22 33 10 11 0 0 1 1 0 0 336 336 511 529 – – 511 529 – – 511 529

Result from investments accounted for using the equity method 0 0 0 0 0 3 –7 1 1 2 0 0 0 0 0 0 9 8 3 14 – – 3 14 – – 3 14

Gross capital expenditures 168 173 908 709 275 468 182 371 335 321 248 268 5,333 5,033 617 552 201 220 8,267 8,115 – 43 – 62 8,224 8,053 – – 8,224 8,053

Investment grants received 0 0 –23 – 43 –2 – 1 0 0 0 0 0 0 – 4,253 – 4,071 – 460 – 374 –74 –77 – 4,812 – 4,566 – – – 4,812 – 4,566 – – – 4,812 – 4,566

Net capital expenditures 168 173 885 666 273 467 182 371 335 321 248 268 1,080 962 157 178 127 143 3,455 3,549 – 43 – 62 3,412 3,487 – – 3,412 3,487

Additions to the scope of consolidation 0 0 0 0 208 3 0 2 9 21 0 0 0 0 0 0 0 0 217 26 – – 217 26 – – 217 26

Employees 5 ) 16,564 15,947 36,878 36,959 46,718 39,545 30,925 31,770 64,051 64,199 26,319 26,375 42,206 41,400 4,835 4,797 27,157 26,516 295,653 287,508 – – 295,653 287,508 – – 295,653 287,508

1) The non-cash items are included in the segment result shown.2) Key figure from internal reporting, no external figures.3) Previous yearʼs figures adjusted as a result of the effects of the first-time retrospective application of IAS 19 (revised June 2011).

æ

4) Profit transfer agreements were not assigned to segment assets or liabilities.5) The number of employees comprises the workforce, excl. trainees, at the end of the reporting period (part-time employees have been converted to full-time equivalents).6) Relating to special items and reclassification PPA amortization of customer contracts and, in the previous year, the reconciliation of revenues

and other operating income with previous year figures.

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208 Information by regions208 Basic principles and methods


InformatIon by regIons

Jan 1 through Dec 31 [ € million ]

External revenues

Non-current assets 1)

Capital employed 1)

Gross capital expenditures

Net capital expenditures Employees 1)

2013 2012 2013 2012 2013 2012 2) 2013 2012 2013 2012 2013 2012

Germany 22,667 22,967 35,188 35,131 26,980 26,525 7,681 7,269 2,872 2,703 187,837 186,222

Europe (excluding Germany) 11,991 11,716 6,473 6,534 5,925 5,934 494 778 491 778 84,228 77,205

Asia /Pacific 2,449 2,753 696 699 662 689 67 47 67 47 13,702 13,958

North America 1,481 1,525 183 192 184 168 17 15 17 15 7,326 7,592

Rest of world 531 560 29 28 33 20 8 6 8 6 2,560 2,531

Consolidation – – – 665 – 662 – 698 – 694 – 43 – 62 – 43 – 62 – –

DB Group adjusted 39,119 39,521 41,904 41,922 33,086 32,642 8,224 8,053 3,412 3,487 295,653 287,508

Reconciliation – 12 –225 – – – – – – – – – –

DB Group 39,107 39,296 41,904 41,922 33,086 32,642 8,224 8,053 3,412 3,487 295,653 287,508

1) Statement as of December 31.2) Adjusted as a result of the effects of the first-time retrospective application of IAS 19 (revised June 2011).

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basIc prIncIples and methods

Fundamental information Deutsche Bahn AG (DB AG), and its subsidiaries (together “DB Group”)

provide services in the fields of passenger transport, transport and

logistics, and operate an extensive rail infrastructure which is also

available to non-Group users on a non-discriminatory basis. Whereas

rail infrastructure activities are conducted primarily in the company’s

domestic market of Germany, business activities in passenger trans-

port are conducted on a europe-wide basis and transport and logistics

activities are conducted on a worldwide basis.

In the year under review, in addition to other minor acquisitions,

DB Group acquired all shares in Veolia transport Central europe GmbH,

Berlin.

DB AG, potsdamer platz 2, 10785 Berlin is an Aktiengesellschaft

( joint stock corporation); its shares are held entirely by the Federal

Republic of Germany. the company is maintained under the number

HRB 50000 in the commercial register of the Amtsgericht (local court)

Berlin-Charlottenburg. DB Group has issued securities in accordance

with section 2 (1) clause 1 of the Securities trading Act (Wertpapier-

handelsgesetz; WpHG); these securities are traded on organized

markets in accordance with section 2 (5) WpHG.

these consolidated financial statements have been prepared by

the Management Board, and were submitted to the Supervisory Board

for the Supervisory Board meeting on March 26, 2014.

Principles of preparing financial statements the consolidated financial statements are prepared on the basis of

section 315a HGB and in accordance with the International Financial

Reporting Standards (IFRS) as applied in the eu and their inter pre -

tation by the International Financial Reporting Interpretations

Committee (IFRIC). the accounting standards have been consistently

applied throughout the entire reporting period with no changes

compared with the previous year.

the financial year of DB AG and its incorporated subsidiaries is the

same as the calendar year. the consolidated financial statements are

prepared in euros. unless otherwise specified, all figures are stated in

million euros (€ million).

a) stanDarDs, revisions of stanDarDs anD

interpretations which are the suBject of

manDatory first-time aDoption for reportinG

perioDs from january 1, 2013 onwarDs

In the year under review, DB Group’s consolidated financial statements

took account of all new and revised standards and interpretations

which are the subject of initial binding adoption starting January 1,

2013, which are also relevant for DB Group and which have not been

the subject of early adoption in previous periods. the changes to the

standards have been recognized in accordance with the transitional

regulations. Initial adoption of these new regulations has not had any

material impact on the consolidated financial statements. they are set

out in the following:

A IAS 1: Amendment of IAS 1 “presentation of Financial Statements:

presentation of Items of other Comprehensive Income” (revised

June 2011; applicable for reporting periods starting July 1, 2012)

new regulations with regard to the presentation of items of other

comprehensive income have been introduced with the amend-

ments to IAS 1. the other comprehensive income is broken down

into items which are reclassified for recognition in the income

statement (so-called recycling) and into items which are retained

in shareholders’ equity. the change has an impact on the presenta-

tion in the financial statements of DB Group.

A IAS 12: Amendment of IAS 12 “Income taxes – Deferred taxes:

Recovery of underlying Assets” (published December 2010; appli-

cable for reporting periods starting January 1, 2013 1)) According

to IAS 12, the measurement of deferred taxes depends on whether

the existing differences are realized as part of continuing use or as

a result of a sale. In the case of investment properties in accordance

1) In December 2012, the European Commission postponed the time at which this was due to come into force from January 1, 2012 to January 1, 2013.

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209consoliDateD financial statements noteS to tHe ConSolIDAteD FInAnCIAl StAteMentS

with IAS 40 which are measured at fair value, this change introduces

the refutable assumption that such differences are realized by way

of a sale. the change is not relevant for DB Group.

A IAS 19: Amendment of IAS 19 “employee Benefits” (revised June

2011; applicable for reporting periods starting January 1, 2013)

IAS 19 has been extensively revised. the amendments which have

been made range from fundamental amendments right through

to mere clarifications and reformulations. one fundamental

amendment relates to the abolition of the corridor approach which

was formerly used in DB Group for recognizing revaluations from

pensions. As of January 1, 2013, these actuarial profits and losses

which previously had not been recognized were retrospectively

recognized directly in the revaluation reserve for pensions; this

has resulted in a corresponding increase in the pension provisions

(see note (32) [ page 254 et seq. ]).

the expected income from plan assets is now determined as a

component of net interest income/expenses using the interest

rate which is also applied for discounting the obligation.

With regard to the impact on the annual financial statements

of DB Group, please refer to the comments in the section “Compa-

rability with the previous year” [ page 211 et seq. ].

there have also been changes in the recognition of past service

costs as well as the definition of severance payments, which mean

that top-up amounts as well as the additional contributions to

the statutory pension insurance scheme within the framework of

semi-retirement agreements will not constitute post-employment

benefits in future. these amendments did not have any major

impact on the financial statements of DB Group.

there are also further disclosure obligations.

A IFRS 1: Amendment of IFRS 1 “First-time Adoption of International

Financial Reporting Standards: Government loans” (published

May 2012; applicable for reporting periods starting January 1,

2013) the amendment of the provisional regulations of IFRS 1

grants a further exemption with regard to the normally retrospec-

tive adoption of IFRS by first-time adopters. Accordingly, public

sector loans for which interest is applied at less than market rates

are permitted to be prospectively measured at fair value. public

sector loans which already exist at the time of the changeover do

not have to be revalued. the amendment does not have any

impact on the financial statements of DB Group.

A IFRS 1: Change to IFRS 1 “First-time Adoption of International

Financial Reporting Standards – Severe Hyperinflation and

Removal of Fixed Dates for First-time Adopters” (published

December 2010; applicable for reporting periods starting January

1, 2013 1)) As a result of this change, the references to the fixed

date January 1, 2004 which had previously been included in IFRS 1

were replaced by a reference to the time of the changeover to

IFRS. Additional application guidelines have been included, speci-

fying the procedure for presenting financial statements which

comply with IFRS for situations in which a company was not able

to comply with the IFRS regulations for a certain period because

its functional currency was exposed to severe hyperinflation. the

amendment does not have any impact on the financial statements

of DB Group.

A IFRS 7: Amendment of IFRS 7 “Financial Instruments: Disclosures –

offsetting Financial Assets and Financial liabilities” (published

December 2011; applicable for reporting periods starting January

1, 2013) this amendment relates to extended disclosure obliga-

tions in relation to the offsetting of financial assets and financial

liabilities. this has resulted in changes in the presentation in the

consolidated financial statements of DB Group.

A IFRS 13: Fair Value Measurement (published May 2011; applicable

for reporting periods starting January 1, 2013) IFRS 13 will in future

define uniform guidelines for measuring fair value and also the

necessary disclosures in notes for fair value measurement. this is

only concerned with determining how fair value can be properly

measured. the question as to the time at which something has

to be measured at fair value does not form part of the standard.

the disclosures in the notes were extended. Apart from the

above, there have been no changes in the consolidated financial

statements of DB Group.

A Improvements to IFRS 2009–2011: “Improvements to IFRS”

(published May 2012; applicable for reporting periods starting

January 1, 2013) “Improvements to IFRS 2009–2011” is a fourth

collective standard for various amendments with regard to five

existing IFRS. these are essentially changes which are considered

to be of a minor nature, such as the removal of inconsistencies

within the standards and clarification of formulations which might

lead to misunderstandings. the changes have not resulted in any

major consequences for the consolidated financial statements of

DB Group.

A IFRIC 20: “Stripping Costs in the production phase of Surface

Mines” (published october 2011; applicable for reporting periods

starting January 1, 2013) IFRIC 20 governs the recognition of

stripping costs in the production phase of a surface mine. the

amendments do not have any impact on the consolidated financial

statements of DB Group.

B) stanDarDs, revisions of stanDarDs anD inter-

pretations which haD Been aDopteD as of the

reportinG Date But which are not yet the suBject

of manDatory aDoption anD early aDoption

A IAS 19: Amendment of IAS 19 “employee Benefits: employee Con-

tributions to Defined Benefit plans” (published november 2013;

applicable for reporting periods starting July 1, 2014) this change

has now clarified the procedure for recognizing the contributions

of employees of third parties included in the terms of a defined

benefit plan if these are linked to the employees’ period of service.

the amendment will not have any major impact on the consoli-

dated financial statements of DB Group.

A IAS 27: Separate Financial Statements (published november 2011;

applicable for reporting periods starting January 1, 2014 1)) With

the adoption of IFRS 10 and IFRS 12, the scope of application of

IAS 27 is limited to the recognition of holdings in subsidiaries,

associates and joint ventures in the separate financial statements

of a company. We do not expect any major consequences for the

consolidated financial statements of DB Group.

1) In December 2012, the European Commission postponed the time at which this was due to come into force from July 1, 2011 to January 1, 2013.

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A IAS 28: Investments in Associates and Joint Ventures (published

november 2011; applicable for reporting periods starting January

1, 2014 1)) With the adoption of IFRS 11 and IFRS 12, the scope of

IAS 28, which was previously limited to associates, has been

extended to include the application of the equity method to

joint ventures. We do not expect any impact on the consolidated

financial statements of DB Group.

A IAS 32: Amendment of IAS 32 “Financial Instruments: presen tation –

offsetting Financial Assets and Financial liabilities” (published

December 2011; applicable for reporting periods starting January 1,

2014) the amendment has resulted in clarification of the criteria

applicable for offsetting financial instruments. the importance of

the current legal entitlement to offsetting is emphasized in partic-

ular. We do not expect any major conse quences for the consolidated

financial statements of DB Group.

A IAS 36: Amendment of IAS 36 “Impairment of Assets: Details of the

Recoverable Amount of non-Financial Assets” (published May


the amendment of IFRS 13 “Fair Value Measurement” has resulted

in consequential amendment in IAS 36. Accordingly, additional

information has to be provided regarding the recoverable amount

of impaired assets. We do not expect any major consequences for

the consolidated financial statements of DB Group.

A IAS 39: Amendment of IAS 39 “Financial Instruments: Recognition

and Measurement: novation of Derivatives and Continuation of

Accounting treatment for Hedge Relationships” (published June


IAS 39 is extended to include an exemption provision, according

to which hedge accounting does not have to be terminated if

the novation (debt replacement) of a hedging instrument with a

central counterparty meets certain criteria. We do not expect any

major consequences for the consolidated financial statements of

DB Group.

A IFRS 9 and IFRS 7: Financial Instruments and Subsequent Amend-

ments (published november 2009/extended october 2010 and

December 2011; revised in november 2013, applicable for reporting

periods starting January 1, 2017 2)) the part of IFRS 9 published in

november 2009 restates the classification and measurement of

financial assets. there will be only two measurement categories

(amortized cost and fair value) 3). In future, the classification of

financial assets will be based on the business model of the com-

pany and also the characteristic properties of the contractual cash

flows of the respective financial assets.

that part which was extended in october 2010 governs the

classification and measurement of financial liabilities. the existing

rules of IAS 39 have been taken over in this respect. A change has

resulted for financial liabilities which are measured at fair value.

In the case of such liabilities, that part of the change in fair value

which results from a change in the company’s own credit risk has

to be shown in other result and not as profit or loss.

In December 2011, the time of first-time adoption as well as

further specifications regarding the transitional regulations were

inserted in the standard.

the amendments adopted in november 2013 relate to the

inclusion of a new general model for hedge accounting, in which

the extent of possible hedges and underlyings is extended and

which provides for new regulations regarding the measurement of

effectiveness. Alternatives to recognition of hedge relationships

have also been introduced, and the disclosure obligations of hedge

relationships have been extended. the new regulations for hedge

accounting form a separate section of IFRS 9 “Financial Instru-

ments.” the IASB has thus terminated phase III of the project for

replacing IAS 39 by IFRS 9.

the change to IFRS 9 will have an impact on the recognition of

financial instruments in DB Group.

A IFRS 10: Consolidated Financial Statements (published May 2011;

applicable for reporting periods starting January 1, 2014 1)) IFRS 10

replaces the stipulations of IAS 27 regarding group accounting and

the regulations of SIC-12 regarding the integration of special

purpose vehicles. It defines a uniform control concept which will

in future be applicable to all companies including special purpose

vehicles. As a result of the amendments, the assessment of

the question as to whether control can be exercised over a group

company will be much more important in future. We expect no

major consequences arising from the future application of the

stipulations on the DB Group’s consolidated financial statements.

A IFRS 11: Joint Arrangements (published May 2011; applicable for

reporting periods starting January 1, 2014 1)) IFRS 11 replaces the

regulations of IAS 31 (Interests in Joint Ventures) and SIC-13

( Jointly Controlled entities – non-monetary Contributions by

Venturers). unlike IAS 31, which distinguishes between jointly

managed companies, jointly managed assets and joint activities,

the only classifications in future will be joint ventures and joint

activities. Because the classification criteria have changed, there

may be effects on the DB consolidated financial statements.

the previous option available for the quota consolidation of joint

ventures has been abolished; partners in a joint venture are

required to apply the equity method. this will not have any effect

on the DB Group’s consolidated financial statements because joint

ventures are already included at equity in the consolidated finan-

cial statements.

1) In December 2012, the European Commission postponed the time at which this was due to come into force from January 1, 2013 to January 1, 2014.2) In November 2013, the IASB postponed the earliest date at which IFRS 9 would come into force. A mandatory date for IFRS 9 to come into force

will only be fixed after the entire project has been completed.3) In November 2012, the IASB published a draft for revising the regulations for classifying and measuring financial instruments; this draft provides

for a third category of debt instruments.

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A IFRS 12: Disclosure of Interests in other entities (published May

2011; applicable for reporting periods starting January 1, 2014 1))

IFRS 12 will in future provide uniform regulations for the disclosure

obligations for consolidated accounting. this covers the disclo-

sures regarding subsidiaries, which were previously regulated in

IAS 27, the disclosures concerning jointly managed companies and

associates, which previously were included in IAS 31 and IAS 28)

as well as disclosures for structured companies (special-purpose

vehicles). the disclosure requirements are extended in this way.

We expect that there will be consequences arising from the future

application of the stipulations on the DB Group’s consolidated

financial statements.

A IFRS 10, IFRS 11 and IFRS 12: Amendment of IFRS 10 “Consolidated

Financial Statements,” IFRS 11 “Joint Arrangements” and IFRS 12

“Disclosure of Interests in other entities: transition Guidance”

(published october 2012; applicable for reporting periods starting

January 1, 2014) the change is applicable for the transition regu-

lations for the first-time adoption of the standards. Accordingly,

the aspect of control has to be assessed in accordance with the new

regulations at the beginning of first-time adoption and not at the

time of the comparison period. In addition, it is no longer necessary

to disclose comparison information regarding non-consolidated

structured companies. We do not expect any major consequences

for the consolidated financial statements of DB Group.

A IFRS 10, IFRS 12 and IAS 27: Amendment of IFRS 10 “Consolidated

Financial Statements,” IFRS 12 “Disclosure of Interests in other

entities” and IAS 27 “Separate Financial Statements: Investment

entities” (published June 2012; applicable for reporting periods

starting January 1, 2014) the amendments specify that invest -

ment companies do not recognize their holdings in subsidiaries in

accordance with IFRS 10 or IFRS 12, and instead recognize them in

accordance with IAS 39. Special disclosure obligations are also

applicable for investment companies in accordance with IFRS 12.

the change will not have any impact on the financial statements

of DB Group.

A Improvements to IFRS 2010 –2012: “Improvements to IFRS”

(published May 2012; applicable for reporting periods starting

July 1, 2014) “Improvements to IFRS 2010–2012” is a fifth collective

standard for various amendments with regard to seven existing

IFRS. We do not expect any major consequences for the consoli-

dated financial statements of DB Group.

A Improvements to IFRS 2011–2013: “Improvements to IFRS”

(published December 2013; applicable for reporting periods

starting July 1, 2014) “Improvements to IFRS 2011–2013” is a

sixth collective standard for various amendments with regard to

four existing IFRS. We do not expect any major consequences


A IFRIC 21: levies (published May 2013; applicable for reporting

periods starting January 1, 2014) this interpretation specifies the

time at which a company has to recognize an obligation to pay a

public levy as a liability. We do not expect any major consequences


Structure of the balance sheet and the statement of incomeAssets and liabilities are stated in the balance sheet either as current

or non-current items. Assets and liabilities are classified as current if

they are realized or due within 12 months after the end of the reporting

period. the structure of the balance sheet takes account of the

requirements of the ordinance relating to the structure of the financial

statements of transport companies. the statement of income uses the

structure of the cost summary method.

Principles underlying the consolidated financial statements comparaBility with the previous year

After due consideration is given to the following issues, the financial

information presented for the year under review is comparable with

the financial information for the previous year:

Changes in the scope of consolidation

Changes in the scope of consolidation, and in particular the acquisition

of all shares in Veolia transport Central europe GmbH, Berlin, result

in financial information in the balance sheet, the statement of income,

the statement of cash flows as well as segment reporting for the finan-

cial year which is not directly comparable with that of the previous

period. Detailed information relating to these acquisitions as well as

explanations concerning the other transactions are set out in the sec-

tion “Changes in the Group” [ page 214 f. ].

Changes in recognition

Since January 1, 2013, income generated by certain types of services has

been shown under revenues, whereas previously it had been shown

under other operating income. this change has been implemented in

view of the fact that these types of services are now attributable to

the core business as a result of changed market conditions and also as

a result of the expansion of the business activities of DB Group. one

effect is reflected particularly in the DB Services segment. In the seg-

ment report, the previous year figures have been adjusted accordingly

with regard to the presentation of income. Because the change in

consolidated income is not major, the previous year figures for the

revenues and other operating income in the consolidated statement of

income have not been adjusted. In the column “Reconciliation” in the

segment report, these adjustment amounts are shown for the previous

year period.

Application of IAS 19 – “Employee Benefits” (revised June 2011)

IAS 19 has been extensively revised. the main change relates to the

rec ognition of so-called actuarial profits and losses in other com-

prehen sive income. these arise as a result of adjustments based on

previous experience and also changes to actuarial parameters. In the

past, DB Group has exercised the previous option by using the corridor

method, according to which the actuarial profits and losses are rec-

ognized in installments and only when the corridor is exceeded.

1) In December 2012, the European Commission postponed the time at which this was due to come into force from January 1, 2013 to January 1, 2014.

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Furthermore, expected income from plan assets is now determined as

a component of net interest income/expenses using the interest rate

which is also applied for discounting the obligation.

the following table contains the consequences for the published

consolidated financial statements for the period ending December 31,

2012 which have resulted from the retrospective application of IAS 19

(revised 2011). the table also contains a simulation of the affected

items in the consolidated financial statements for the period ending

December 31, 2013 on the assumption of the application of the unre-

vised IAS 19 (2009).

In the year under review, comprehensive income would have declined

by € 81 million to € 411 million mainly as a result of the revaluation

which was not included in the unrevised IAS 19 (2009) and related

deferred taxes (previous year: improvement of € 715 million to

€ 1,354 million).

In the segment information broken down according to operating

segments and also the information relating to regions, the figures of

the previous year period for capital employed have been adjusted

accordingly.

After applica-tion of IAS 19 R

Before applica-tion of IAS 19 R Change

After applica-tion of IAS 19 R Published Change

Jan 1 through Dec 31, 2013 Jan 1 through Dec 31, 2012

Items of the statement of Income

Personnel expenses – 14,383 – 14,416 33 – 13,817 – 13,817 0

Operating income (EBIT ) 1,767 1,734 33 2,529 2,529 0

Net interest income – 879 – 842 – 37 – 1,005 – 982 –23

Profit before taxes on income 876 880 – 4 1,525 1,548 –23

Taxes on income –227 –233 6 – 66 –71 5

Net profit for the year 649 647 2 1,459 1,477 – 18

Earnings per share (€ per share)

undiluted 1.53 1.52 0.01 3.38 3.42 – 0.04

diluted 1.53 1.52 0.01 3.38 3.42 – 0.04

Dec 31, 2013 Dec 31, 2012

Items of the Balance sheet

Receivables and other assets (non-current) 138 159 –21 117 166 – 49

Deferred tax assets 1,404 1,325 79 1,584 1,500 + 84

Reserves 4,190 5,010 – 820 4,342 5,251 – 909

Retained earnings 8,446 8,561 – 115 8,356 8,403 – 47

Minority interests 126 126 0 130 130 0

Pension obligations 3,164 2,162 1,002 3,074 2,071 1,003

Deferred tax liabilities 223 232 – 9 244 256 – 12

Jan 1, 2012

Items of the Balance sheet

Receivables and other assets (non-current) 100 94 6

Deferred tax assets 1,497 1,461 36

Reserves 5,171 5,384 –213

Retained earnings 7,428 7,457 –29

Minority interests 136 135 1

Pension obligations 2,270 1,981 289

Deferred tax liabilities 347 353 – 6

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consoliDation methoDs

a) Consolidation principles

DB AG and all companies (subsidiaries) whose financial and business

policy can be determined by DB AG are fully consolidated in the

consolidated financial statements of DB AG. they are incorporated in

the consolidated financial statements at the point at which DB AG

acquires the possibility of control. At the subsidiaries, “control” is

defined usually as a situation in which DB AG directly or indirectly

holds a majority of voting rights. even if such a majority does not exist,

the criteria of “control” are satisfied if DB AG is able to control more

than half of the voting rights as a result of a voting right agreement,

to determine the financial and business policy of the subsidiary in

accordance with the articles of incorporation or an agreement, to

nominate or dismiss a majority of the members of management and/

or supervisory bodies or control a majority of votes on the occasion of

meetings of the management and/or supervisory bodies. on the other

hand, no control can exist in cases in which this majority is indeed

present but in which the previously described possibilities can be

excluded as a result of contractual agreements. these investments are

recognized as associates, joint ventures or other investments. the

reference date for determining the point at which a company is taken

out of the group of fully consolidated companies is established on

the basis of the time at which the possibility of control terminates.

For the purpose of uniform accounting, the affiliated companies

have applied the accounting guidelines of the parent company.

Capital is consolidated in accordance with the acquisition method

in line with IFRS 3.4.

Minority interests in the shareholders’ equity of subsidiaries are

shown separately from the shareholders’ equity of the Group share-

holders. the extent of the minority interests is calculated as the

minority interests applicable at the point at which the subsidiary was

acquired and also that proportion of the change in the shareholders’

equity of the subsidiary since the acquisition attributable to the third

party.

Internal liabilities as well as expenses and income and intercom-

pany results between fully consolidated companies are completely

eliminated.

b) Business combinations

All subsidiaries acquired after December 31, 2002 have been consoli-

dated using the acquisition method under IFRS 3. Accordingly, the

acquirer shall measure the cost of a business combination as the

aggregate of the fair values, at the date of exchange, of assets given

and liabilities incurred or assumed. the acquired identifiable assets,

liabil ities and contingent liabilities are valued under IFRS 3 with their

fair value at the date of acquisition, irrespective of any minority inter-

ests. Alternatively, acquired long-term assets or groups of assets

which are classified as “available-for-sale” in accordance with IFRS 5

are shown with their fair value less costs to sell.

Any difference between the purchase costs of the business combina-

tion and the acquired assets valued at fair value is shown as goodwill.

If the purchase price is lower than the fair value of the acquired assets,

the difference, following a further assessment, is shown immediately

in the income statement.

Minority interests are calculated on a pro rata basis from the

assets, liabilities and contingent liabilities valued with their fair value.

the acquisition and sale of shares in an already fully consolidated

company which does not result in a change of control is shown directly

in equity. there have accordingly been no changes to the carrying

amounts of the assets and liabilities recognized from such transactions.

c) Joint ventures and associated companies

Joint ventures are defined as companies which are managed by DB AG

jointly with another party either directly or indirectly.

Associated companies are defined as equity participations for

which DB Group is able to exercise a major influence on the financial

and business policy. Major influence is normally defined as a situation

in which DB AG directly or indirectly holds 20 to 50 % of the voting

rights in these companies and the related assumption of association

is not refuted.

In exceptional cases, companies in which DB Group holds fewer than

20 % of the voting rights are classified as associates and recognized

using the equity method. Despite such a low shareholding, a major

influence is deemed to exist in such cases, for instance as a result of

various rights of co-determination in major issues of business policy or

because members of management are appointed by DB Group.

Joint ventures and associated companies are accounted for using

the equity method. Alternatively, they are valued in accordance with

IFRS 5 if the shares are classified as available-for-sale.

As part of the process of accounting for participations using the

equity method, shares in associated companies and joint ventures are

shown at cost in the consolidated financial statements, adjusted for

the related changes in the net assets of the associated companies and

joint ventures and any impairments resulting from the impairment

test. Any pro rata losses attributable to DB Group which exceed the

total investment in the associated company or joint venture, consisting

of the amortized equity figure as well as other long-term receivables,

are not recognized, unless DB Group has taken on corresponding obli-

gations or made payments.

Any positive difference between the cost of the purchased shares

and the pro rata assets acquired at the point of purchase and valued

at fair value constitutes goodwill, which is contained in the amortized

equity figure and is thus also subject to the impairment test. If the

purchase price is lower than the fair value of the pro rata assets which

have been acquired, the difference is taken immediately to the income

statement.

Intercompany results attributable to transactions with associated

companies or joint ventures are eliminated on a pro rata basis.

Quota consolidation is not applicable in DB Group.

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chanGes in the Group

a) Subsidiaries

Movements in the group of fully consolidated companies of DB Group

are detailed in the following:

[ Number ]German

2013 Foreign

2013total 2013

total 2012

fully consolIDateD suBsIDIarIes

As of Jan 1 130 619 749 802

Additions 5 32 37 10

Additions due to changes in type of inclusion 1 1 2 2

Disposals 4 123 127 65

Disposals due to changes in type of inclusion 0 0 0 0

Total 132 529 661 749

As was the case in the previous year, all subsidiaries are consolidated.

Additions of companies and parts of companies

overall, a total of € 172 million (net) was spent on company acquisi-

tions in the year under review (previous year: € 15 million).

the additions to the scope of consolidation comprise eight new

companies which were established in the year under review as well as

the acquisition of all shares in euro-line panamericana (panama) S.A.,

panama City/panama (Schenker panama), the acquisition of all shares

in Veolia transport Central europe GmbH, Berlin (Veolia eastern

europe), the acquisition of 49 % of shares in Salem Freight International,

Abu Dhabi/united Arab emirates (Schenker uAe), the acquisition of

the remaining 56.044 % of shares in Centrebus Holdings limited,

leicester/Great Britain (Centrebus), the acquisition of 100% of shares

in pRoBoBuS a.s., Kraluv Dvur/Czech Republic and Abellio CZ a.s.,

Kraluv Dvur/Czech Republic (Czech Bus), as well as the acquisition of

51 % of shares in Zeta Automotive limited, Sunderland/Great Britain

(Zeta Automotive).

the addition resulting from the change in the type of recognition

relates to the acquisition of further shares in MegaHub lehrte Betreiber -

gesellschaft mbH, Hanover (MegaHub lehrte), which previously had

been accounted for using the equity method.

the transactions are detailed in the following:

A With the agreement of December 19, 2012 (closing March 22, 2013),

DB Schenker logistics acquired all shares in euro-line panamericana

(panama). this company is one of the leading freight forwarders for

maritime imports with registered offices in panama City. panama

is a major hub for the distribution of products in Central and

Southern America. the company is now trading under the name

Schenker panama S.A. In segment reporting, the company has been

shown in the DB Schenker logistics segment since April 1, 2013.

A With the agreement of February 20, 2013 (closing March 14, 2013),

Deutsche umschlaggesellschaft Schiene – Straße (DuSS) mbH

increased its holding in MegaHub lehrte by a further 41.7 %, and

now holds 75 % of the shares. In segment reporting, the company

has been shown in the DB netze track segment since April 1, 2013.

A on April 29, 2013 (closing May 15, 2013), DB Ml AG acquired all

shares in Veolia transport Central europe GmbH, Berlin (trading

as Arriva europe GmbH since May 30, 2013). As a result of the

acquisition, DB Arriva became the largest international operator

of passenger services in eastern europe, and will expand its

existing business in poland, Slovakia and the Czech Republic.

Croatia, Serbia and Slovenia will be added as new markets. At

the time of acquisition, Veolia eastern europe operated more than

3,400 vehicles at about 60 locations. Starting May 1, 2013, the com -

pany has been included in segment reporting in the DB Arriva

segment.

A on February 7, 2013 (closing June 1, 2013), DB Group acquired 49 %

of the shares in Salem Freight International, Abu Dhabi/united

Arab emirates. the company is now trading as Schenker logistics

l.l.C.; it operates in the field of air and ocean freight as well as

land transport, and specializes in trade fairs and exhibitions.

Despite the minority holding, control is exercised by DB Group as

a result of contractual regulations. In segment reporting, the com-

pany has been shown in the DB Schenker logistics segment since

June 1, 2013.

A With the agreement of September 4, 2013 (closing September 9,

2013), DB Arriva acquired the remaining 56.044 % of shares in

Centrebus Holdings limited, leicester/ Great Britain. this is a

company which operates local bus services in Great Britain, in the

east Midlands and in Yorkshire. Starting September 1, 2013, the

company has been included in segment reporting in the DB Arriva

segment.

A on october 4, 2013 (closing november 28, 2013), DB Group

acquired all shares in pRoBoBuS a.s., Kraluv Dvur/Czech Republic,

and Abellio CZ a.s., Kraluv Dvur/ Czech Republic. With more than

110 buses, these two companies operate bus services in the Czech

Republic with a regional focus to the west of prague. Starting

December 1, 2013, the company has been included in segment

reporting in the DB Arriva segment.

A With the agreement of october 2, 2013 (closing December 2, 2013),

Arriva plc acquired 51 % of shares in Zeta Automotive limited,

Sunderland/Great Britain. this company designs, develops and

supplies products for reducing the fuel consumption and emissions

of road vehicles. Starting December 1, 2013, the company has been

included in segment reporting in the DB Arriva segment.

the costs of purchase and the fair value of the acquired net assets are

shown in the following (cumulatively) for all changes in the scope of

consolidation. All purchase price allocations for acquisitions in the

period under review are consistent with IFRS 3. Goodwill is to a large

extent substantiated by the synergy effects expected for the period

after the acquisition. In addition, a considerable proportion of good-

will is attributable to assets which are not eligible for recognition

under IFRS 3, and in particular the employee base, market access and

the future revenue potential.

æ

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Contingent purchase price components were agreed in the course of

the acquisition of Zeta Automotive; these trigger additional payments

to the vendor depending on the fulfillment of certain future condi-

tions. A payment of GBp 1 million falls due as soon as further product

developments have been successfully completed. In addition, a further

amount totaling GBp 1 million will probably fall due in the years 2014

to 2016 if certain profit targets are met.

In the case of the above-mentioned acquisitions, we do not expect

that part of the goodwill is allowable for income tax purposes.

puRCHASe pRICe AlloCAtIon SCHenKeR pAnAMA

the acquired net assets are broken down as follows:

[ € million ]Carrying

amountAdjust-

mentFair

value

Property, plant and equipment 1 – 1

Trade receivables 1 – 1

Cash and cash equivalents 1 – 1

assets 3 – 3

Liabilities 2 – 2

Debt 2 – 2

thereof recognized contingent liabilities in accordance with IFRS 3 0 – 0

Share of third parties 0 – 0

Net assets acquired 1 – 1

Purchase price paid in cash and cash equivalents 2 – 2

Cash and cash equivalents acquired 1 – 1

Outflow of cash and cash equivalents through transaction 1 – 1

the fair value of the trade receivables is € 1 million; this figure does

not include any impairments.

If Schenker panama had been included in the DB Group’s consoli-

dated financial statements as of January 1, 2013, DB Group would have

reported additional revenues of € 3 million and an additional net profit

of € 0 million.

After being initially consolidated, Schenker panama has generated

revenues of € 9 million and a net profit of € 0 million.

puRCHASe pRICe AlloCAtIon MeGAHuB leHRte

there are no major assets and liabilities, nor have any such assets and

liabilities resulted from the purchase price allocation process.

If MegaHub lehrte had been included in the DB Group’s consoli-

dated financial statements as of January 1, 2013, DB Group would not

have reported any additional revenues or any additional net profit.

After the time of initial consolidation, MegaHub lehrte has not

generated any revenues, and has generated a result of € 0 million.

puRCHASe pRICe AlloCAtIon VeolIA eASteRn euRope



amountAdjust-

mentFair

value

Property, plant and equipment 152 – 31 121

Intangible assets 1 35 36

Inventories 4 – 4


Other receivables and other assets 8 – 8


Deferred tax assets 6 6 12

assets 218 10 228

Financial debt 39 2 41

Liabilities 23 4 27

Other provisions 12 –7 5

Deferred items 2 – 2

Deferred tax liabilities 14 7 21

Debt 90 6 96



Net assets acquired 122 4 126




the fair value of the trade receivables is € 21 million, including impair-

ments of € 6 million.

æ

æ

the goodwill is calculated as follows:

[ € million ] 2013

thereof Schenker

Panama

thereof Megahub

Lehrte

thereof Veolia

Eastern Europe

thereof Schenker

UAE thereof

Centrebusthereof

Czech Bus

thereof Zeta

Automotive

Purcha se PrIce

Payments 172 2 0 152 7 1 9 1

+ Outstanding payments 3 – – – – 0 – 3

total compensation 175 2 0 152 7 1 9 4

+ Fair value of share in equity capital held before acquisition 1 – – – – 1 – –

– Fair value of net assets acquired 131 1 0 126 0 – 3 5 2

Goodwill 45 1 0 26 7 5 4 2

æ

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the calculation of the fair value of customer and transport contracts

is based on the current medium-term planning of the acquired compa-

nies, particularly with regard to the main transport contracts which

have been acquired. the fair value is established by discounting the

expected cash flows to the time of initial consolidation.

the process of calculating the fair value of onerous transport

contracts has used the current earnings and cash flow planning of

these contracts, discounted to the time of initial consolidation.

overall, the valuation of the customer and transport contracts

corresponds to valuation level 3, whereby the corresponding discount

factors have been derived with level-2 input parameters.

In an initial stage, the fair value of the buses was calculated by

adjusting the historical costs of purchase by current price changes in

order to obtain the current replacement costs (valuation level 2).

Additional adjustments were also made in individual cases, so that

overall a valuation has been carried out in accordance with valuation

level 3.

If Veolia eastern europe had been included in the DB Group’s con-

solidated financial statements as of January 1, 2013, DB Group would

have reported additional revenues of € 85 million and an additional

net profit of € 4 million.

After being initially consolidated, Veolia eastern europe has gen-

erated revenues of € 158 million and a net profit of € 7 million.

puRCHASe pRICe AlloCAtIon SCHenKeR uAe



amountAdjust-

mentFair

value




assets 0 0 0

Other provisions 0 – 0

Debt 0 – 0







no trade accounts receivable have been acquired.

the calculation of the fair value of customer contracts is based on the

current medium-term planning of the acquired company. the fair value

is established by discounting the expected cash flows to the time of

initial consolidation (valuation level 3).

If Schenker uAe had been included in the DB Group’s consolidated

financial statements as of January 1, 2013, DB Group would have

reported additional revenues of € 4 million and an additional net profit

of € 0 million.

After being initially consolidated, Schenker uAe has generated


puRCHASe pRICe AlloCAtIon CentReBuS



amountAdjust-

mentFair

value

Property, plant and equipment 6 –2 4


Inventories 0 – 0




Deferred tax assets 0 – 0

assets 7 – 1 6

Financial debt 6 – 6

Liabilities 3 – 3



Debt 9 – 9



Net assets acquired – 2 – 1 – 3






If Centrebus panama had been included in the DB Group’s consoli-


reported additional revenues of € 6 million, and the figure reported for

net profit would have been € 0 million higher.

After being initially consolidated, Centrebus has generated reve-

nues of € 6 million and a net profit of € 0 million.

æ

æ

K


puRCHASe pRICe AlloCAtIon CZeCH BuS



amountAdjust-

mentFair

value

Property, plant and equipment 6 – 1 5

Intangible assets 0 – 0

Inventories 0 – 0




Deferred tax assets 0 1 1

assets 10 – 10

Liabilities 1 1 2

Other provisions 0 2 2

Deferred tax liabilities 1 – 1

Debt 2 3 5



Net assets acquired 8 – 3 5






If Czech Bus had been included in the DB Group’s consolidated

financial statements as of January 1, 2013, DB Group would have reported

additional revenues of € 0 million, and the figure reported for net profit

would have been € 0 million higher.

After being initially consolidated, Czech Bus has generated revenues

of € 0 million and a net profit of € 0 million.

puRCHASe pRICe AlloCAtIon ZetA AutoMotIVe



amountAdjust-

mentFair

value



Inventories 0 – 0




assets 0 5 5

Financial debt 0 – 0

Liabilities 0 – 0



Deferred tax liabilities 0 1 1

Debt 0 1 1


Share of third parties 0 2 2







If Zeta Automotive had been included in the DB Group’s consoli-


reported additional revenues of € 1 million, and the figure reported for

net profit would have been € 0 million higher.

After being initially consolidated, Zeta Automotive has generated


Disposals of companies and parts of companies

the disposals from the scope of consolidation relate to nine mergers

as well as 116 liquidations and two sales. the sales have generated a

cash inflow of € 0.2 million.

the following table shows a summary of the effects on the con-

solidated statement of income resulting from the changes in the scope

of consolidation which have taken place compared with the previous

year period:

æ æ

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[ € million ]

DB Group Jan 1 to

Dec 31, 2013

thereof due to additions

to the scope of

consolidation

thereof due to disposals from

the scope of consolidation

Revenues 39,107 221 – 3

Inventory changes and internally produced and capitalized assets 2,649 – – 4

Overall performance 41,756 221 –7

Other operating income 2,853 6 0

Cost of materials –20,414 – 110 3

Personnel expenses – 14,383 –71 5

Depreciation – 3,228 – 15 0

Other operating expenses – 4,817 –23 1

operating profit (eBIt ) 1,767 8 2

Result from investments accounted for using the equity method 3 – –

Net interest income – 879 – 1 0

Other financial result – 15 0 0

financial result – 891 – 1 0

Profits before taxes on income 876 7 2

Taxes on income –227 –2 0

Net profit for the year 649 5 2

of the figure of € 221 million reported for revenues resulting from

additions to the scope of consolidation, € 158 million relates to

Veolia eastern europe, € 29 million is attributable to tFG transfracht

(acquired in the course of the previous year), € 9 million is attributable

to Schenker panama, € 9 million is attributable to Suomen Kiitoautot

(acquired in the course of the previous year), € 6 million is attributable

to Schenker uAe, € 6 million is attributable to Centrebus, € 3 million is

attributable to Ambuline (acquired in the course of the previous year)

and € 1 million is attributable to Schenker namibia (acquired in the

course of the previous year).

b) Joint ventures and associated companies

[ Number ]German

2013Foreign

2013total 2013

total 2012

JoInt ventures accounteD for usInG the equIt y methoD

As of Jan 1 11 11 22 25

Additions 1 1 2 0


Disposals 0 1 1 2


As of Dec 31 12 11 23 22

a ssocIateD comPanIes accounteD for usInG the equIt y methoD

As of Jan 1 59 57 116 121

Additions 0 1 1 4


Disposals 1 4 5 7


As of Dec 31 57 53 110 116

the additions are from two joint ventures (total purchase costs € 0.2

million) and one associate (purchase cost € 0.01 million).

the following selected financial data are provided for the major

associates and joint ventures; this information has been taken from the

consolidated financial statements or the annual financial statements

of the relevant companies:

æ

æ

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AGGReGAteD FInAnCIAl DAtA

As of Dec 31 [ € million ]

Equity holding

in %

Assets Equity Liabilities Revenues Net profit

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012

JoInt ventures

Aquabus BV, Heerenveen /the Netherlands 1), 2) 50.00 14 13 5 4 9 8 9 8 0 0

ATN Auto Terminal Neuss GmbH & Co. KG, Neuss 2), 3) 50.00 7 7 5 5 2 2 15 14 1 0

London Overground Rail Operations Limited, London /Great Britain 2), 4) 50.00 75 60 4 14 71 46 149 124 7 4

PKV Planungsgesellschaft kombinierter Verkehr Duisburg mbH, Duisburg 1), 2) 50.00 11 12 1 1 10 11 1 2 0 0

a ssocIateD comPanIes

ADRIA KOMBI, nacionalna druzba za kombinirani promet d.o.o., Ljubljana /Slovenia 5 ), 6 ), 9) 26.00 20 0 11 0 9 0 31 0 2 0

ATS Air Transport Service AG, Zürich /Switzerland 3) 26.00 7 7 5 5 2 2 17 16 0 0

Autoport Emden GmbH, Emden 1), 2) 33.30 3 3 0 0 3 3 20 21 0 0

Bäckebols Akeri AB, Göteborg /Sweden 2), 1 0) 35.00 11 9 8 6 3 3 10 9 1 1

Barraqueiro SGPS SA, Lisbon /Portugal 1) 31.50 564 600 181 193 383 407 328 336 – 19 7

BLS Cargo AG, Bern /Switzerland 2), 3) 45.00 129 152 74 75 55 77 130 146 –2 0

BwFuhrparkService GmbH, Troisdorf 2), 3) 24.90 249 242 140 135 109 106 312 318 5 2

Container Terminal Dortmund GmbH, Dortmund 2), 3) 30.00 6 6 4 4 2 2 20 19 2 2

CTS Container-Terminal GmbH Rhein-See-Land-Service, Cologne 2), 4) 22.50 7 7 2 1 5 5 34 35 1 1

DAP Barging B.V., Rotterdam /the Netherlands 2), 3) 55.00 4 6 2 2 2 4 28 32 1 1

DCH Düsseldorfer Container-Hafen GmbH, Düsseldorf 2), 4) 51.00 3 3 0 0 3 3 16 16 0 0

EUROFIMA Europäische Gesellschaft für die Finanzierung von Eisenbahnmaterial, Basel /Switzerland 11) 22.60 22,465 25,935 1,259 1,270 21,206 24,665 0 0 28 28

Express Air Systems GmbH (EASY ), Kriftel 1), 2), 1 0) 50.00 11 8 4 4 7 4 36 45 1 1

EXTRA.TO S.c.a.r.l., Turin /Italy 2), 5 ), 8) 30.01 13 0 0 0 13 0 35 0 0 0

Güterverkehrszentrum Entwicklungsgesellschaft Dresden mbH, Dresden 1), 2) 24.53 16 18 2 2 14 16 1 1 0 0

Hispanauto –Empresas Agrupadas A.E.I.E.©, Madrid /Spain 1) 58.04 5 5 0 0 5 5 26 21 0 0

Intercambiador de Transportes Principe PIO S.A., Madrid /Spain 1), 2) 30.00 79 72 9 – 10 70 82 9 8 – 1 0

INTERCONTAINER – INTERFRIGO SA, Brussels /Belgium 2), 7 ), 1 2) 36.20 42 42 – 6 – 6 48 48 0 0 –24 –24

Kahlgrund-Verkehrs-Gesellschaft mit beschränkter Haftung, Schöllkrippen 2), 4) 28.00 11 10 8 8 3 2 10 9 1 1

KM S.P.A., Cremona /Italy 1) 49.00 11 13 5 5 6 8 0 0 0 0

Kombiverkehr Deutsche Gesellschaft für kombinierten Güterverkehr mbH & Co. Kommanditgesellschaft, Frankfurt am Main 2), 3) 50.00 54 51 17 17 37 35 425 436 1 1

LogCap-IR Grundverwertungsgesellschaft mbH, Vienna /Austria 1) 49.00 20 20 5 5 15 16 1 1 0 0

Lokomotion Gesellschaft für Schienentraktion mbH, Munich 2), 3) 30.00 27 23 8 8 19 15 46 39 1 0

Omfesa Logistica S.A., Madrid /Spain 38.66 16 20 0 3 16 17 6 14 – 5 3

Pool Ibérico Ferroviario A.E.I.E., Madrid /Spain 1) 9.02 5 6 0 0 5 6 17 18 0 0

Prometro S.A., Porto /Portugal 2), 3) 20.00 28 36 4 4 24 32 47 45 0 0

Śląskie Cenrum Logistyki S.A., Gliwice /Poland 2), 1 1) 21.86 15 12 11 10 4 3 7 5 0 0

Sociedad de Estudios y Explotación Material Auxiliar de Transportes, S.A. (“SEMAT” ), Madrid /Spain 1) 48.56 27 30 4 4 23 26 13 16 – 5 – 6

SSG Saar-Service GmbH, Saarbrücken 2), 1 0) 25.50 3 4 1 1 2 2 14 15 0 0

Trans-Eurasia Logistics GmbH, Berlin 2), 3) 40.00 4 4 1 1 3 3 26 24 0 0

Trieste Trasporti S.P.A.,Trieste /Italy 1), 2) 39.94 103 103 44 46 59 57 75 75 4 5

VT-Transman Szémelyszállító és Szolgáltató Kft, Székesfehérvár/Hungary 1) 49.91 60 13 11 7 49 5 37 19 4 2

1) Based on preliminary figures.2) Figures according to local GAAP.3) Figures from 2012 financial year. 4) Different financial year.5) No /incomplete data from 2012 financial year available.6) Addition in current year.

æ

7) Data as of September 30, 2010; in liquidation.8) Data as of December 31, 2011.9) Data as of September 30, 2013.10) Data as of November 30, 2013.11) Concerns financing transactions exclusively.12) No /incomplete data.

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currency translation

a) Functional currency and reporting currency

Currency translation uses the concept of the functional currency. the

functional currency of all subsidiaries included in the consolidated

financial statements of DB AG is the relevant local currency.

the consolidated financial statements are prepared in euros

(reporting currency).

b) Transactions and balances

transactions which are not carried out in the functional currency of a

company included in the scope of consolidation (foreign currency

transactions) are translated into the functional currency of the corre-

sponding entity using the rate applicable at the time of the transaction.

exchange rate gains and losses resulting from processing such trans-

actions and valuing monetary assets and liabilities at the rate applicable

on the reporting date in the financial statements are recognized in the

income statement.

c) Subsidiaries

Subsidiaries whose functional currency is not the euro convert their finan -

cial statements which are prepared in local currency into the reporting

currency (euro) for the purpose of being included in the consolidated

financial statements of DB AG as follows: assets and liabilities are con-

verted using the reference date rate, and income and expenses are

converted using the average rate. Differences resulting from currency

translation are shown separately under shareholders’ equity.

the shareholders’ equity which has to be initially consolidated as

part of an acquisition of foreign subsidiaries is translated as of the

relevant balance sheet date using the historical rate applicable at the

time of the acquisition. Any differences resulting from the currency

translation are shown separately under shareholders’ equity.

As long as the subsidiary is included in the scope of consolidation,

the translation differences continue to be shown under consolidated

shareholders’ equity. If subsidiaries are no longer included in the scope

of consolidation, the corresponding translation differences are elimi-

nated and recognized in the income statement.

Goodwill and adjustments to the fair values of assets and liabilities

due to acquisitions of foreign subsidiaries are treated as assets and

liabilities of the foreign companies and are translated using the exchange

rate applicable on the reporting date.

the annual financial statements of subsidiaries which are domiciled

in hyperinflationary economies are translated in accordance with IAS

29. no major subsidiary was domiciled in a hyperinflationary economy

in the reporting and comparison period.

Currency translation differences resulting from the translation of

shares in a foreign subsidiary and also resulting from loans which are

part of the net investment in such foreign subsidiaries are shown under

shareholders’ equity. When the foreign subsidiary is no longer included

in the scope of consolidation, the currency translation differences are

eliminated via the income statement.

the following exchange rates are some of the rates used for currency

translation purposes:

€ 1 equivalent to

Closing rates as of Dec 31 Average rates

2013 2012 2013 2012

Australian Dollar (AUD) 1.54230 1.27120 1.37769 1.24071

Canadian Dollar (AUD) 1.46710 1.31370 1.36837 1.28421

Swiss Franc (CHF) 1.22760 1.20720 1.23106 1.20528

Danish Krona (DKK ) 7.45930 7.46100 7.45792 7.44368

Pound Sterling (GBP) 0.83370 0.81610 0.84925 0.81087

Hong Kong Dollar (HKD) 10.69330 10.22600 10.30157 9.96626

Japanese Yen ( JPY ) 144.72000 113.61000 129.66267 102.49187

Norwegian Krone (NOK ) 8.36300 7.34830 7.80671 7.47506

Polish Zloty (PLN) 4.15430 4.07400 4.19749 4.18474

Swedish Krona (SEK ) 8.85910 8.58200 8.65154 8.70407

Singapore Dollar (SGD) 1.74140 1.61110 1.66188 1.60546

US Dollar (USD) 1.37910 1.31940 1.32812 1.28479

recoGnition of income anD expenses

the revenues generated in DB Group relate to the provision of pas-

senger transport, transport and logistics services, the provision of rail

infrastructure, the sale of goods and other services related particularly

to rail operations, less turnover tax, discounts and any price deduc-

tions. they are recognized with their fair value.

the services provided by DB Group are normally completed within

a few hours/days. exceptions in this respect are the segments DB Bahn

Regional and DB Arriva, where the development of orders in the form

of long-term transport contracts concluded with the clients comprising

the Federal states in Germany and the franchisors in other european

countries are very important for the development of overall business.

Contractual relations with clients covering several years also exist in

Contract logistics/SCM in the DB Schenker logistics segment, which

accounts for about 5 % of overall Group revenues. Revenues resulting

from the provision of services are therefore recognized as soon as the

service has been provided, the extent of the revenues and the costs

is reliably measurable and the economic benefit will probably accrue

to DB Group.

Dividend income is recognized at the point at which the right to

receive the payment arises. Interest income is recognized in the

income statement using the effective interest method in the period in

which the income arises.

All expense and income items are normally recognized without

being netted, unless the accounting principles under IFRS permit or

require netting.

expenses are recognized in the income statement at the point at

which the service is used or at the point at which the expenses are

incurred.

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accountinG anD valuation methoDs

a) Property, plant and equipment

property, plant and equipment is recognized at cost of purchase and

cost of production less cumulative depreciation, and also with due

consideration being given to impairments and reversals of previous

impairments. Costs of purchase comprise the purchase price plus ancil-

lary purchase costs less purchase price reductions. If there are any

closure or restoration obligations, they are recognized in the costs of

purchase and production of the property, plant and equipment, and a

provision is shown at the same time. Cost of production comprises

individual costs as well as overhead costs which are directly allocable.

If a considerable period is required for manufacturing an asset in

order to place it in its intended state in which it is capable of being

used or sold, directly attributable borrowing costs are capitalized as

costs of production of the asset. If a direct link cannot be established,

the average borrowing cost rate of the year under review is used.

turnover tax incurred in connection with the purchase or production

of property, plant and equipment is only capitalized if input tax is not

permitted to be deducted.

Subsequent costs are capitalized if the expenses enhance the eco-

nomic benefit of the property, plant and equipment and if the costs

can be reliably measured.

Components of property, plant and equipment which are significant

in relation to the total costs of purchase and costs of production are

recognized separately and written down over their useful lives using

the straight-line method. on the other hand, all other repairs or main-

tenance are expensed.

Depreciation is taken to the income statement on a straight-line

basis over the expected service life of the asset. the following useful-

service lives for the main groups of property, plant and equipment are

taken as a basis:

Years

Permanent way structures, tunnels, bridges 60 – 90

Track infrastructure 13 –26

Buildings and other constructions 10 –75

Land improvements 8–20

Signaling equipment 10 – 40

Telecommunications equipment 5 –20

Rolling stock 10 –30

Other technical equipment, machinery and vehicles 3 –25

Factory and office equipment 2–20

the appropriateness of the chosen depreciation method and the service

lives is subject to an annual review. our expectations regarding the

residual value are also updated annually.

Investment grants are deducted directly from the cost of purchase

or cost of production of the assets for which the grants have been

given.

b) Finance lease assets

Rented and leased assets where the underlying leases are classified

as finance leases under IAS 17 are capitalized with the lower of fair

value or the present value of minimum lease payments at the start of

the lease, and are depreciated using the straight-line method over the

financial service life of the asset or the shorter duration of the lease.

c) Intangible assets and goodwill

Intangible assets acquired for a monetary consideration are recog-

nized at cost of purchase. Intangible assets manufactured in-house are

recognized with their cost of production, and consist mainly of soft-

ware. the costs of the development phase are capitalized if a future

economic benefit accrues to DB Group and if the other capitalization

criteria are satisfied. the costs of production comprise all costs which

can be directly allocated and those costs which are incurred in order

to prepare the asset for its envisaged use.

processes involving international invitations to tender may result

in order and mobilization costs which are associated with future opera-

tions within the framework of a transport contract. If it is very likely

that the agreement will indeed come into being, and if the costs are

capable of being invoiced such costs are capitalized and written down

over the probable life of the agreement.

Costs of production comprise mainly costs for material and services,

wage and salary costs as well as relevant overhead costs.

If a considerable period is required for manufacturing an asset in

order to place it in its intended state in which it is capable of being

used or sold, directly attributable borrowing costs are capitalized as

costs of production of the asset. If a direct link cannot be established,

the average borrowing cost rate of the year under review is used.

turnover tax incurred in connection with the purchase and pro-

duction of intangible assets is only capitalized if input tax is not

deductible.

Intangible assets (excluding goodwill and the Arriva brand) are

subsequently valued at cost of purchase or cost of production less

depreciation and impairments plus any reversals of previous impair-

ments. Depreciation is calculated using the straight-line method. the

adequacy of the depreciation method and the service life are subject

to an annual review.

the following useful-service lives are used as the basis for depre-

ciation on intangible assets:

Years

Franchises, rights, etc.Duration of

contract

Trademarks Economic life

Brand names Economic life

Customer base Economic life

Purchased software 3 – 5

Software produced in-house 3

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Goodwill arises as a positive difference between the costs of purchasing

the shares and the fair values of the individually acquired assets,

absorbed liabilities and contingent liabilities. It is not depreciated;

instead, it is subject to an annual impairment test. Impairment losses

in relation to goodwill are not reversed.

d) Impairments of assets

IAS 36 governs the impairment test for property, plant and equipment

and intangible assets with a certain economic life, which is carried out

using a so-called indicator-based asset impairment test. Such an asset

impairment test has to be carried out when indicators (so-called trig-

gering events) indicate a possible loss of value. In addition, according

to IAS 36, goodwill as well as intangible assets with an indefinite service

life have to be subjected at least once a year to an impairment test in

the form of a goodwill impairment test.

DeFInItIon oF CASH-GeneRAtInG unItS

Goodwill impairment tests have to be carried out at the level of indi-

vidual assets as part of the asset impairment test. If it is not possible

to determine future cash flows, which are to a large extent indepen-

dent, for an individual asset, so-called cash-generating units (CGus)

have to be formed as an aggregation of assets whose future cash flows

depend on each other. In DB Group, the CGus are to a large extent

identified at the level of the operating segments, whereby a further

differentiation can also be made within the DB Services segment as a

result of different service content. Due to the congruence between

management structure and legal structure, the identified CGus also

always consist of at least one legal unit. this means that the data

necessary for the asset impairment test can be derived from annual

financial statements and planning data.

the impairment test for goodwill is carried out at the level of the

CGu to which the goodwill has been allocated. Significant goodwill

currently exists in the CGus DB Arriva, DB Schenker Rail and DB Schen ker

logistics. please refer to the segment information according to oper-

ating segments.

MetHoD

In the impairment test in accordance with IAS 36, the carrying amount

of an asset, a CGu or a group of CGus has to be compared with the

corresponding recoverable amount. If the positive carrying amount is

no longer covered by the recoverable amount, this results in a corre-

sponding impairment.

the carrying amount of a CGu is established by adding the

carrying amounts of the assets less the liabilities which are related to

the relevant assets (net position). In addition, for determining the

carrying amount of a CGu, it is also necessary to recognize corporate

assets and corporate liabilities jointly used by several CGus, and the

working capital necessary for the corresponding CGu must also be

taken into consideration.

the recoverable amount is defined as the higher of the fair value less

costs to sell and the value in use. In the impairment tests carried out

in DB Group, the recoverable amount is represented by the value in

use. the value in use is established as the present value of the free cash

flows before interest and after tax attributable to the continuation of

a CGu or a group of CGus. A global tax rate of 30.5 % has again been

used in relation to eBIt (unchanged to the previous year). the forecast

of cash flows reflects previous experience, and takes account of man-

agement expectations with regard to future market developments.

these cash flow forecasts are based on the medium-term planning

adopted by the Management Board of DB AG and which covers a planning

horizon of five years. If cash flow forecasts are necessary beyond the

five-year planning horizon, a sustainable free cash flow is derived from

the forecast and is extrapolated on the basis of a growth rate related

to the specific market development. As in the previous year, an average

growth rate of 1 % p.a. has been assumed, and an average growth rate

of 2 % p.a. has been assumed for the CGu DB Arriva.

A weighted average cost of capital is used for discounting the free

cash flows; this reflects the expectation of return on the capital

market for providing debt and equity capital to DB Group. Because

free cash flow after taxes has been calculated, a cost-of-capital rate

after tax has also been used. Risks of free cash flows are recognized

by a risk-equivalent capitalization rate. A uniform capitalization rate of

6.6 % has been used for the CGus of DB Ml Group, which is equivalent

to a corresponding capitalization rate before taxes of 9.5 % (previous

year: 9.6 %) when due consideration is given to the typical tax rate of

30.5 % in relation to eBIt. A uniform capitalization rate of 5.2 % has

been used for the CGus of the infrastructure, which is equivalent to a

corresponding capitalization rate before taxes of 7.5 % (previous year:

7.3 %) when due consideration is given to the typical tax rate of 30.5 %

in relation to eBIt. the slight changes in the WACCs compared with the

previous year are attributable to current expectations of medium- to

long-term developments of the capital market.

ASSet IMpAIRMent teSt

processes which comply with the specific requirements of IAS 36 have

been implemented in order to carry out the asset impairment test. the

service lives of the individual CGus used for the asset impairment test

are based on the service life of the asset or a group of homogenous

assets which is (are) most significant for the particular CGu.

In addition, the process of calculating the value in use disregards

assets or future cash flows which result from major structural changes,

disinvestment measures or extension investments. Resultant adjust-

ments to the original plans relate mainly to the major new and expan-

sion infrastructure projects, where it is assumed that the construction

process will be completed beyond the medium-term (beyond 2018)

and for which most of the company’s planned own resources have not

yet been invested. Accordingly, the project Stuttgart 21 also did not

have to be taken into consideration for calculating the value in use (in

accordance with IAS 36.44) because a major part of the investment

had not been implemented as of the balance sheet date and because

the project is only expected to be completed after the medium-term

period.

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the cash flow forecasts take account of internal transfer prices within

DB Group on the basis of arm’s length assessments of the companies

involved. the published infrastructure prices are applicable for goods

and services exchanged between transport and infrastructure segments;

price increases in the period covered by the forecast have also been

taken into consideration.

After the medium-term planning has been completed, a regular

check is carried out to determine whether impairments are necessary

at the CGu level. In addition to this annual cycle, a test is also performed

if current issues arising from the development in business or changes

in assumptions indicate that there has been a major deterioration in the

value in use. the medium-term planning defined by the Management

Board for the years 2015–2018 has not yet been submitted for the

attention of the Supervisory Board, as it has not yet been possible for key

financial conditions of the transport budget to be specifically stated

for medium-term planning and financing of the rail infrastructure.

the voluntary impairment tests carried out in the period under

review did not identify any impairment requirement for any CGu.

Independently of the voluntary impairment tests carried out in

relation to the CGus, impairments are recognized in relation to indi-

vidual assets which are no longer capable of being used fully. these

impairments are shown under the disclosures for the respective balance

sheet item.

GooDWIll IMpAIRMent teSt

A goodwill impairment test must be carried out annually for all CGus

or groups of CGus to which goodwill can be allocated. Because the

goodwill which arises in DB Group as a result of acquisitions can

always be clearly allocated to a CGu, this goodwill impairment test is

an integral part of the asset impairment test which is always carried

out annually for all CGus.

the goodwill impairment tests carried out for the affected CGus

DB Arriva, DB Schenker Rail, DB Schenker logistics and DB Bahn

Regional have not identified any impairment requirement. the respec-

tive recoverable amount is represented by the value in use of the CGu,

which in turn has been derived from the medium-term planning of the

four segments. the details relating to methods presented above are

thus applicable correspondingly. At DB Arriva, DB Schenker Rail and

DB Schenker logistics, it also has to be borne in mind that separate

assumptions relating to the development of the economy, market and

competition as well as currency relations have been made for the

relevant international markets. these assumptions have been based

on the external and internal expert assessments available at the time

of the planning.

e) Shares in companies accounted for using the equity method

Shares in associated companies and joint ventures are accounted for

using the equity method in accordance with IAS 28 (Shares in Associ-

ated Companies) or in accordance with the option specified in IAS 31

(Shares in Joint Ventures). Based on the Group costs of purchase at

the time of the purchase, the figure for the change in shareholders’

equity at the company accounted for using the equity method attribut-

able to the shares of DB Group is extrapolated.

f) Financial assets

Arm’s length purchases or sales of financial assets are recognized or

eliminated on the settlement date. At present, there are the following

categories in DB Group in accordance with IAS 39:

AVAIlABle-FoR-SAle FInAnCIAl ASSetS

Available-for-sale financial assets are normally recognized with their

fair value. For financial instruments traded on an active market, the

fair value is derived from the market price as of the balance sheet date.

If the fair value of equity instruments is not reliably measurable, the

available-for-sale financial assets are recognized at cost of purchase

less any impairment.

Shares in non-consolidated subsidiaries and other equity invest-

ments are also considered to be available-for-sale financial assets.

they are normally shown with their amortized cost of purchase

because the future cash flows for determining the market value of the

shares cannot be reliably established.

Available-for-sale long- or short-term securities are recognized

with their market values as of the reporting date – where such values

exist. Changes in fair value are recognized with no impact on the

income statement in the reserve attributable to the marking-to-market

of securities.

ReCeIVABleS AnD otHeR FInAnCIAl ASSetS

Receivables and other financial assets are initially measured at fair

value. In general, this is equivalent to the costs of purchase. long-term

interest-free or low-interest receivables (receivables due after more

than one year) are discounted to the present value of future cash flows.

Discounted receivables are adjusted for cumulative interest in subse-

quent periods with the effective interest fixed for initial valuation.

Receivables for which there are substantial objective indications

of an impairment are adjusted appropriately. portfolio-based allow-

ances are also recognized in relation to groups of assets; in particular,

historical default rates are taken into consideration.

CASH AnD CASH eQuIVAlentS

this item comprises cash in hand and checks, deposits at banks which

are due on sight, as well as cash and cash equivalents. Balances at

banks comprise overnight money as well as time deposits due within

three months.

liquid assets are recognized with their nominal value.

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g) Inventories

All costs which are directly related to the procurement process are

capitalized as the costs of purchase of the inventories. the average

method is used as the basis for establishing the cost of purchase of

fungible and homogeneous raw materials and supplies. the costs of

production comprise the individual costs and also the directly attribut-

able overheads; borrowing costs and idle costs are not capitalized, and

instead are recognized as expense in the period in which they are

incurred.

As of the balance sheet date, inventories are measured with the

lower of cost or net realizable value.

h) Available-for-sale non-current assets

under IFRS 5, non-current assets are classified as available-for-sale

non-current assets if their carrying amount is to be realized by way of

sale and not by way of continued use. this can be an individual asset,

a disposal group or part of a company. non-current available-for-sale

assets are stated with the lower of carrying amount or market value

less costs which are incurred.

i) Deferred taxes

Deferred taxes are calculated in accordance with IAS 12 (Income

taxes).

the group tax rate for domestic companies used as the basis for

calculating deferred taxes was 30.5 %. the group tax rate comprises

the corporation tax rate plus solidarity surcharge and an average trade

tax rate. Foreign subsidiaries use their relevant local tax rates for

calculating deferred taxes.

A deferred tax asset is recognized in accordance with IAS 12.24 or

IAS 12.34 if, after corresponding deferred tax liabilities have been

deducted, it is likely that adequate taxable income is available. the

medium-term planning with additional estimates is used as the basis

of this process. Deferred tax assets relating to income which can be

generated after the medium-term period are not recognized, on the

grounds that they cannot be reliably determined.

Deferred taxes are established on the basis of the tax rates which

can be expected for the period in which the deferred tax is realized on

the basis of existing laws or laws which have in essence been adopted.

j) Financial debt and liabilities

Current liabilities are normally recognized with their nominal amount,

which corresponds to the fair value at the point at which the liability

is initially recognized and the amortized costs of purchase up to the

date at which the liability is settled. Financial debt and other non-

current liabilities, when initially recognized, are stated with the amount

which corresponds to the fair value of the received assets, where

appropriate less transaction costs. Subsequently, they are stated using

amortized costs of purchase using the effective interest method. the

differences between the amount paid out less transaction costs and

the amount repaid are recognized in the income statement over the

life of the liability.

Interest-free loans which are related to infrastructure capital expen-

ditures are recognized with the present value of the amounts to be

repaid, and are adjusted to their nominal repayment amount over their

life. the difference between the nominal amount of the loan and the

present value is recognized as an interest benefit under accruals. the

income from pro rata reversal of these accruals is shown as other

operating income.

liabilities arising from leases which are classified as finance leases

in accordance with the allocation criteria of IAS 17 are recognized at the

lower of fair value and the present value of minimum leasing payments

at the beginning of the lease, and are subsequently stated under finan-

cial debt in the amount of amortized cost of purchase. the leasing

installments are broken down into an interest component and a repay-

ment component. the interest component of the leasing installment

is recognized in the income statement.

k) Employee benefits (employees covered by

wage bargaining agreements and employees not

covered by wage bargaining agreements)

penSIon oBlIGAtIonS AnD SIMIlAR CoMMItMentS

In DB Group, there are defined benefit as well as defined contribution

retirement pension systems.

the provision for defined benefit pension schemes shown in the

balance sheet corresponds to the present amount of the pension obliga-

tion (defined benefit obligation; DBo) less the present value of the plan

assets on the balance sheet date adjusted by effects of cost-spreading

and franchise agreements. the pension obligation is calculated annually

by independent actuarial appraisals using the projected unit credit

method. Actuarial profits or losses are recognized as revaluation in

other comprehensive income.

past service cost is recognized immediately in the income statement.

the discount rate underlying the calculation of the pension obliga-

tion is used for calculating the income from the plan assets. this income

and the costs of compounding the pension obligations are shown in

financial result. the difference between the theoretical income from the

plan assets and the actual development is also shown as revaluation

under other comprehensive income.

In the case of defined contribution retirement pension systems,

DB Group pays contributions to public sector or private retirement pen-

sion schemes, either voluntarily or as a result of a contractual or statutory

obligation. DB Group does not have any additional payment obliga-

tions beyond having to pay the contributions. the contributions are

recognized in personnel expenses when due. Advance payments of

contributions are recognized as assets to the extent that there is a right

for a repayment or reduction of future payment.

the discount rate for measuring pension obligations was determined

on the basis of the yields obtained on the market on the balance sheet

date for prime fixed-income industrial bonds. prime corporate bonds

with an AA rating are used as the basis in this respect.

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employees who are covered by the collective bargaining agreement

for employer-financed payments to the company retirement benefit

scheme for the employees of various companies of DB Group (bAV-tV)

or the corresponding regulations in other collective bargaining agree-

ments of the companies of DB Group as well as the collective bar-

gaining agreement for engine drivers of rail transport companies of

the Agv MoVe (lftV) receive an employer-financed payment into the

company retirement benefit scheme.

the funding vehicle for this employer-financed payment into the

company retirement benefit scheme is the pension fund of DeVK

pensionsfonds-AG which has already been offered to employees for

salary conversion. Defined contribution pension plans were set up for

the employer-financed payment. As a funding vehicle, the pension

fund is not relevant for provisions.

pAYMentS on tHe oCCASIon oF teRMInAtIon oF eMploYMent

ContRACtS (SeVeRAnCe pACKAGeS)

Severance packages become payable if an employee is released from

his/her duties under the terms of an early-retirement or semi-retire-

ment scheme before reaching normal pensionable age (which would

not involve any reduction of retirement benefits) or if an employee

voluntarily terminates his/her employment contract in return for a

severance package. Severance payments are recognized if there is a

demonstrable obligation either to terminate the employment agree-

ments of current employees in accordance with a detailed formal plan

which cannot be reversed or to pay severance payments if the em-

ployment contract is voluntarily terminated by employees within the

framework of employment contract termination agreements.

Severance package obligations for agreements agreed as of the

balance sheet reporting date are recognized as other liabilities and – if

they are not yet included in individual agreements and if they are part

of a restructuring obligation in accordance with IAS 37 (provisions,

Contingent liabilities and Contingent Assets) – are stated as other

provisions.

otHeR BeneFItS Due In tHe lonG teRM

employees who are covered by the regulations of the collective bar-

gaining agreement with regard to maintaining long-term accounts for

the employees of various companies of DB Group (lzk-tV), are able

to convert their overtime which they have worked or are able to pay

single or regular amounts into a long-term account which is managed

in cash equivalents to cover the possibility of being exempted from

duties in the future. the relevant companies of DB Group are obliged

under the terms of collective bargaining agreements to pay the com-

pensation for the additional overtime or make the contributions to the

employee’s long-term account on the basis of a separate contribution

agreement plus the related employer’s contributions to social insurance

into the “Fonds zur Sicherung von Wertguthaben e.V.” (credit fund)

every month at the point at which the salary payment becomes due.

the credit fund has been established in the legal form of a registered

association as a joint institution of the wage-bargaining parties in

accordance with the Wage Bargaining Act. It is responsible for managing

and administering the credits.

the compensation paid to the employees during a phase during which

the employees are exempted from their duties is financed out of the

credit fund. the duration of the phase during which the employees are

exempted from their duties is determined by the amount of the credit

which has been built up by the employees.

With regard to the credits, no further financial risks are retained

in DB Group when the funds are paid out.

Semi-retirement agreements are based on the so-called block

model. the top-up amounts paid in addition to salary by DB Group

during the semi-retirement period as well as additional contributions

to the statutory pension insurance scheme constitute benefits arising

upon termination of the employment contract. they are measured

with their present value at the time at which the obligation arises and,

in line with the revised version of IAS 19, are accumulated from the

time at which the semi-retirement agreement is signed up to the end

of the active phase of the semi-retirement arrangement. the compen-

sation backlog (plus the employer’s contributions to social insurance)

for the additional work performed during the employment phase is

also shown with the present pro rata value as another non-current

employee benefit.

If certain conditions are satisfied, DB Group offers its employees

the opportunity to reduce their working hours to a level below their

regular working hours (special semi-retirement arrangement).

l) Other provisions

other provisions are set aside if there is a legal or constructive obliga-

tion resulting from a past event which is more than 50 % likely to result

in an outflow of resources and if the extent of the obligation can be

reliably estimated. If it is likely that a provision will be refunded, for

instance as a result of an insurance policy, the refund is recognized as

a separate asset only if it is as good as certain. the income from refunds

is not netted with the expenses.

non-current provisions are discounted using market interest rates.

the probable fulfillment amount which is used as the basis for dis-

counting purposes also comprises the future events which have to be

taken into consideration on the balance sheet date. the provision is

then recognized with its present value. environmental protection

provisions for the rehabilitation of existing ecological legacy issues

are discounted on the basis of real interest rates, which are adjusted

to reflect the risk and the period until fulfillment. the difference

between the nominal value of the expected outflows and the present

value recognized for the environmental protection provisions of DB AG

for transferred liabilities for the elimination of legacy issues from the

time previous to the foundation of DB AG is stated under deferred

items, and represents the interest benefit resulting from the longer-

term release of the provision. the cumulative interest expense attrib-

utable to other provisions is recognized in financial result. provisions

for potential losses are measured as the lower of the amount of the

expected costs for fulfilling the agreement and the expected costs for

terminating the agreement.

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m) Deferred items

DeFeRReD puBlIC-SeCtoR GRAntS

DB Group receives various public-sector grants, which are provided in

relation to specific assets or on the basis of a specific performance.

the grants are recognized in the balance sheet as soon as it is certain

that they will be provided and as soon as the conditions necessary for

receiving the grants have been satisfied. the grants related to assets,

and in particular investment grants, are deducted directly from the

assets for which grants have been received. the interest benefit (dif-

ference between nominal value and present value) of interest-free

loans is deferred on the basis of the contractual grant conditions. the

income from pro rata reversal of these accruals is shown as other

operating income.

DeFeRReD pRoFItS FRoM SAle-AnD-leASe-BACK AGReeMentS

If capital gains are realized in conjunction with sale-and-lease-back

agreements and if the subsequent lease is classified as a finance lease,

these are deferred and released with an impact on the income statement

over the life of the relevant agreements.

Grants related to assets, and in particular investment grants, are

deducted directly from the assets for which grants have been received.

n) Derivative financial instruments

ReCoGnItIon oF DeRIVAtIVe FInAnCIAl InStRuMentS

At the point at which the contract is concluded, derivative financial

instruments are recognized as a financial asset or a financial liability

in the balance sheet. Derivative financial instruments are initially and

subsequently measured at fair value. the treatment of changes in the

fair value depends on the type of the hedged underlying. At the point

at which the contract is taken out, derivative financial instruments are

generally classified as a hedging instrument (a) for hedging the fair

value of certain assets or liabilities recognized in the balance sheet

(fair value hedge) or (b) for hedging the cash flows arising from a

contractual obligation or an expected transaction (cash flow hedge).

Fair value hedges

the purpose of fair value hedges is to provide protection against

changes in the value of balance sheet items. In these cases, the hedge

as well as the hedged risk content of the underlying are recognized

with their present value. Changes in value are recognized in the income

statement.

DB Group does not have any fair value hedges as of the balance

sheet date.

Cash flow hedges

Cash flow hedges are used to provide protection against fluctuations in

the cash flows of financial assets or liabilities or anticipated transactions.

When future cash flows are hedged, the hedging instruments are also

recognized with their fair value. Changes in value are initially recognized

in equity with no impact on the income statement, and are only recog-

nized in the income statement at the point at which the corresponding

losses or profits from the underlying have an impact on the income

statement or the transactions expire.

Derivative financial instruments which do not satisfy the requirements

for recognizing hedges in accordance with IAS 39

If hedges which in economic terms are used for interest, currency or

price hedging do not satisfy the requirements of IAS 39 for being recog-

nized as a hedge, the changes in value are immediately recognized in

the income statement.

Calculation of the fair value

the fair value of financial instruments which are traded in an active

market is derived from the market price applicable on the balance

sheet date. Common valuation methods such as option price or present-

value models are used for determining the fair value of finan cial instru-

ments which are not traded in an active market. If valuation-relevant

parameters are not directly observable on the market, forecasts are used

based on comparable financial instruments which are traded in an

active market; these forecasts are then adjusted by premiums or dis-

counts on the basis of historical data. the mean value of bid and offer

rates are used. trades for which no premium has been paid have a fair

value of zero upon conclusion. Since March 2013, DB AG has been oper-

ating its activities with long-dated financial derivatives on a hedged

basis, and does not perform any credit risk adjustment for the present

value for hedged transactions. For considerations of materiality, no

credit risk adjustment is used for short-term derivatives. If credit risk

adjustment is used, the relevant discounts are derived from the credit

default swap (CDS) figures observable on the market.

All derivatives used in DB Group are measured using common

methods such as option price or present value models, because their

fair values are not traded on an active market. no parameters from

non-observable markets are used for measurement purposes.

capital manaGement in DB Group

(in accorDance with ias 1)

the purpose of financial management of DB Group is to not only achieve

sustainable growth in the enterprise value but also to comply with a

capital structure which is adequate for maintaining a very good rating.

the capital structure is managed on the basis of the gearing figure.

Gearing is defined as the ratio between net financial debt (financial

debt less receivables from financing and cash and cash equivalents)

and equity. the main instruments for managing the capital structure

are: scheduled repayment of financial debt as well as strengthening

of the equity capital by way of retained earnings.

the aim is to achieve gearing of 100 % and thus parity between

debt and equity. this objective is unchanged compared with last year.

Gearing has developed as follows:

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[ € million ] Dec 31,

2013Dec 31,

2012

Financial debt 19,313 18,613

– Receivables from financing – 90 –72

– Cash and cash equivalents –2,861 –2,175

net financial debt 16,362 16,366

÷ Equity 1) 14,912 14,978

Gearing (%) 110 109

1) Previous yearʼs figure adjusted as a result of the effects of the first-time retrospective application of IAS 19 (revised June 2011).

Compared with the previous year, gearing deteriorated slightly as a

result of the decline in equity, due to a reduction in reserves in equity

(for details, please refer to the consolidated statement of changes in

equity [ page 205 ]. In line with the amendment of IAS 19 “employee

Benefits” as of January 1, 2013, the corridor approach used in DB Group

for recognizing actuarial profits and losses is not applied for measuring

the pension obligations. please refer to the comments in the section

“Comparability with the previous year” [ page 211 ff. ].

Based on adjusted eBIt, return on capital employed (RoCe) is

calculated as a further parameter as a key component of the value

management concept. the capital employed represents the use of

capital provided by shareholders and providers of debt which is tied

up in DB Group and which is associated with yield expectations. the

parameter is derived on the basis of the closing balance sheet for the

year under review. the following table shows the process of calculating

capital employed, using the asset and liability items shown in the

balance sheet.

[ € million ]Dec 31,

2013 Dec 31,

2012

Property, plant and equipment 37,696 37,630

+ Intangible assets /goodwill 4,115 4,186

+ Inventories 948 989

+ Trade receivables 4,113 4,202

+ Receivables and other assets 1) 1,027 934

– Receivables from financing – 90 –72

+ Income tax receivables 112 74

+ Assets held for sale 5 0

– Trade liabilities – 4,379 – 4,406

– Miscellaneous and other liabilities – 3,290 – 3,332

– Income tax liabilities – 147 – 184

– Other provisions – 4,883 – 5,162

– Deferred items –2,141 –2,217

Capital employed 33,086 32,642


For further calculation, the adjusted eBIt and eBItDA in the following

table is derived from the operating result (eBIt) shown in the state-

ment of income. the corresponding details at the segment level have

been calculated using the same method.

[ € million ] 2013 2012

Operating profit (EBIT ) 1,767 2,529

Income from the disposal of financial instruments – 13 – 39

Expenses from the disposal of financial instruments 2 17

Restructuring DB Schenker Rail – 12 130

Impairments for real estate 200 270

Potential losses DB Arriva 102 60

Reassessment of ecological burdens – –200

Elimination of restitution claims – – 113

Other 99 – 42

operating profit (eBIt ) adjusted for special items 2,145 2,626

PPA amortization customer contracts (depreciation) 91 82

eBIt adjusted 2,236 2,708

Depreciation 3,228 3,328

PPA amortization customer contracts (depreciation) – 91 – 82

Impairments –234 – 353

EBITDA adjusted 5,139 5,601

Special items totaling € 378 million were adjusted in eBIt in the year

under review. these are mainly due to impairments recognized for the

real estate portfolio in the DB netze track segment (€ 200 million)

and the set up of provisions for potential losses in the DB Arriva segment

(€ 102 million). the potential losses relate to transport agreements in

Malta and Sweden. In addition to the adjustment for provisions for

potential losses, this includes impairments relating to the fixed assets

of the activities of Arriva Malta limited, Qormi/Malta. In addition, the

amortization of customer and franchise agreements has been reclas-

sified from eBIt; these will be written down over the remaining term

of the respective agreements as a result of being capitalized as intan-

gible assets as part of the process of purchase price allocation (ppA)

(€ 91 million). this amount is mainly attributable to DB Arriva.

the capital employed and the adjusted eBIt have resulted in the

following figures for return on capital employed (RoCe).


2013 Dec 31,

2012

EBIT adjusted 2,236 2,708

÷ Capital employed 1) 33,086 32,642

Return on capital employed (ROCE ) (%) 6.8 8.3


critical assessments anD appraisals

the consolidated financial statements are based on assessments and

assumptions relating to the future. Based on past experience and

reasonable expectations of future events, the estimates and assess-

ments which are derived are continuously reviewed and adjusted

where appropriate. nevertheless, the assessments will not always cor-

respond to subsequent actual circumstances.

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the assessments and assumptions which may involve a significant risk

during the next financial year in the form of major adjustments to

the carrying amounts of assets and liabilities are discussed in the

following.

a) Impairment of cash-generating units (CGUs)

every year, and on the basis of the updated medium-term planning,

DB Group carries out a test to establish whether there is an impair-

ment requirement for a cash-generating unit. this assessment is also

reviewed in the course of a year if there are any major events or changes

to assumptions, and is updated where necessary. Fundamental prin-

ciples and assumptions of the impairment procedure used in DB Group

in accordance with IAS 36 (Impairment of Assets) are detailed in the

section “Accounting and valuation methods” under the heading

“Impairments of assets” [ page 222 f. ]. the main assumptions which have

an impact on the value of a CGu are reviewed in the form of standard

sensitivity analyses.

In addition to the risk potential simulated as part of the following

standard scenarios, the infrastructure CGus are exposed to risks

relating to the extent of future investment grants for replacement

capital expenditures in the existing network and the related extent

of own funds at the infrastructure companies.

In order to assure the quality and availability of the existing network

in the long term, the cash flow forecasts underlying the impairment

procedure take account of all necessary maintenance costs and re-

placement capital expenditures.

In addition to an increased requirement line for replacement cap-

ital expenditures, DB Group is also assuming a change in the financing

mix relating to the follow-on agreement to the performance and

financing agreement (leistungs- und Finanzierungsvereinbarung;

luFV) which still has to be negotiated with the Federal government.

It has been assumed that, starting in 2015, the equity content of the

infrastructure companies will be significantly reduced and will be sub-

stituted by investment grants of the Federal government. this

changed financing mix is consistent with the legal regulations of the

Federal track expansion Act (Bundesschienenwegeausbaugesetz;

BSWAG), according to which the Federal government, in line with

Section 8 (1) BSWAG, finances the capital expenditures in the track

and according to which the infrastructure companies are only required

to provide co-finance, in line with Section 10 BSWAG, if they have a

business interest. In view of the considerably reduced expectations of

the infrastructure companies with regard to results and return, and

also in view of the risk of a reduction in the value of fixed assets shown

in the balance sheet, it cannot be assumed that there will be a business

interest in increased equity contributions for the foreseeable future,

particularly as this would further exacerbate the pressure on infra-

structure prices as a result of the higher amounts of capital tied up and

also because this would additionally weaken the competitive situation

of the rail mode of transport.

on the financing side, DB Group is assuming that a reasonable propor-

tion of the additional government funds for transport infrastructure

agreed in the coalition agreement of november 2013 will benefit the

rail mode of transport and also the prioritized need to maintain the

existing network, and is also assuming that these funds will be contin-

ued at an increased level in the long term. this increased budget line

is to be strengthened by DB Group in the form of a dividend which will

gradually increase over a period of time starting in 2015 and which

will be used entirely for infrastructure financing. DB Group is also

assuming that the planning and financing reliability covering several

years, which was agreed in the coalition agreement, will be assured by

appropriate budget means, and is also assuming that the funds will be

deployed in a flexible manner in terms of timing and content in order

to provide financial backing for priority requirements, respective

project progress and longer-term ramp-up curves.

With regard to defining these assumptions, DB Group has been

guided by the discussions and preliminary agreements with the Fed-

eral government since the autumn of 2013. However, the Federal gov-

ernment will only provide the actual budget resources in the course

of 2014. this is also applicable for the follow-up agreements to the

performance and financing agreement which, according to the inten-

tion of the parties involved (the Federal government and DB Group),

is expected to be concluded by no later than the autumn and which is

expected to cover the five-year period between 2015 and 2019.

If the final budget resources and/or contractual framework differ

appreciably from the original assumptions, it is possible that this

might have an impact on the value of the CGu DB netze track as well

as the quality, availability and long-term dimensions of the rail infra-

structure. In this case, it would also be necessary for an impairment

test to be carried out in the course of a year as soon as it is possible

for the financial consequences to be assessed with adequate certainty

(triggering event).

eBIt MARGIn

the risk of an eBIt margin reduced by 10 % has been considered for

analyzing a scenario in which results fail to perform in line with budget.

In this scenario, an impairment requirement has been identified for the

CGus DB Vehicle Maintenance and DB Fleet Management as the value

in use is lower than the positive carrying amount by less than € 50

million in each case. For the CGus DB Bahn Regional and DB netze

track, this scenario has identified considerable shortfalls of about

€ 100 million and € 900 million respectively. In scenarios in which the

eBIt margin is reduced, the above CGus are robust up to the follow -

ing limits: DB Vehicle Maintenance 2.5 %, DB Fleet Management 7 %,

DB Bahn Regional 9 % and DB netze track 5 %. All other CGus report

stable surplus coverage even if the eBIt margin is reduced by 10 %.

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AVeRAGe ReAl GRoWtH RAte oF CASH FloWS

A reduction of 10 % in the long-term growth rate has been simulated

in order to assess the sensitivity of the impairment test result in rela-

tion to the assumed long-term growth of cash flow (DB Arriva 2 %, all

other CGus 1 %). As was the case in the previous year, no impairment

requirement has been identified for any of the CGus considered in this

scenario.

WeIGHteD AVeRAGe CoSt oF CApItAl

Risks relating to the assumptions of the capitalization rate, which is

normally used for calculating the present value of value in use, have

been analyzed by simulating the value of each CGu in conjunction with

a capital cost mark-up of 10 %. the currently used weighted costs of

capital (after taxes) have been used as the basis of this simulation:

infra structure 5.2 %, DB Ml Group 6.6 %. In this scenario, DB Vehicle

Maintenance shows a shortfall of about € 20 million, whereas DB netze

track would show a deficit of about € 500 million. the simulation did

not identify any impairment requirement up to an increase in the

assumed cost of capital of up to +6% for DB netze track and +4% at

DB Vehicle Maintenance. All other CGus reported surplus cover even in

conjunction with an increase of 10% in the capitalization rate.

uSeFul lIFe AnD ReSIDuAl VAlue

With regard to the assumptions relating to useful life and residual

value, the effect of a 10 % reduction in the residual value at the end of

useful life (= terminal value) was analyzed. A minor shortfall of € 4

million would only be applicable for the CGu DB Vehicle Maintenance.

All other CGus also showed sound surplus cover in this scenario.

b) Deferred taxes

the calculation of deferred tax assets is generally based on the

medium-term planning. If the sum of net profits planned for the

medium-term planning period were to decline by 10 % in conjunction

with otherwise unchanged tax parameters, deferred tax assets would

have to be adjusted by € 112 million (previous year: € 125 million).

c) Environmental protection provisions

the environmental protection provisions relate primarily to the obliga-

tion of DB AG to remedy the ecological legacy issues which arose

before January 1, 1994 on the land of Deutsche Bundesbahn and the

former Deutsche Reichsbahn. the ecological legacy issues comprise

mainly contamination of soil and groundwater as a result of using the

properties. the obligation to rehabilitate the property is derived from

the Federal Soil protection Act (Bundesbodenschutzgesetz; BodSchG),

the Water Management Act (Wasserhaushaltsgesetz; WHG), the landfill

Site ordinance (Deponieverordnung; DepV) as well as other additional

acts and ordinances.

the provision has been calculated on the basis of a discounting

method using the present value, where rehabilitation measures are

probable, the rehabilitation costs can be reliably estimated and no

future benefit is expected to be derived from these measures.

the estimation of future rehabilitation costs is subject to various uncer-

tainties. In addition to technical developments in the rehabili tation field

and the intensity of innovation, changes in the legal background can also

have a substantial impact on rehabilitation costs. For establishing the

amount of the provision stated in the balance sheet, the rehabilitation

obligations which are currently physically known or identifiable have

been used as the basis for estimating the expected costs in relation to

the current price level.

the figure shown for environmental protection provisions is cal-

culated on the basis of expected cash-effective outflows and on the

basis of the application of a risk-adjusted real interest rate of 0.72 %

(previous year: 0.72 %).

If major legal conditions or official covenants result in implementa-

tion times of rehabilitation measures which differ considerably from the

estimated time corridor, this might result in a changed time horizon for

the expected cash outflows, and also to a changed provision. In addition,

price increases may also result in a higher provision.

d) Trade receivables and other receivables

the impairment of doubtful receivables to a considerable extent com-

prises assessments and appraisals of individual receivables which are

based on the creditworthiness of the particular customer, current

economic developments as well as an analysis of historical bad debts

at the portfolio level. If the impairment is derived on the basis of his-

torical default rates at the portfolio level, any decline in the overall

volume of receivables results in a corresponding reduction of such

provisions (and vice versa).

e) Pensions and similar obligations

Actuarial methods have been used for measuring defined benefit pen-

sion commitments as well as benefit commitments which are similar

to pensions and the resultant costs and income. the valuations are

based on actuarial assumptions. these include in particular discount

factors, salary and pension trends as well as biometrical calculation

bases. the discount factors which are used reflect the interest rates

(giving due consideration to the duration of the underlying obligation)

which are achieved on the balance sheet date for high-quality fixed-

income bonds with a corresponding term. In the case of externally

financed pension plans, the values of the corresponding plan assets

or the refund claims are based on the market values as of the balance

sheet date. Key assumptions for expenses and income attributable to

pension commitments and benefit commitments similar to pensions

are to some extent based on current market conditions. expenses

and income attributable to pension commitments and benefit commit-

ments similar to pensions may change as a result of changes to these

underlying key assumptions (see sensitivity analyses in section “Pension

obligations” [ page 254 ff. ] under item (32)).

f) Provisions

the process of determining all types of provisions is associated with

estimates regarding the extent and/or timing of obligations.

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230 Notes to the statement of income

230 Deutsche Bahn Group 2013 ANNuAl RepoRt

Notes to the statemeNt of iNcome

the special items detailed at this point are issues which are considered

to be unusual either in terms of the amount involved or the actual

reason behind the issue. Irrespective of the amount involved, this item

comprises book profits and losses arising from transactions with

investments/financial assets as well as depreciation on long-term cus-

tomer contracts, which have been capitalized as part of the purchase

price allocation process in connection with company acquisitions. In

addition, the special items recognize individual issues if they are of an

exceptional nature, if they are definable for accounting purposes, if

they can be measured and if the amount involved is material. In addi-

tion to the special items, effects from changes in the scope of consoli-

dation and changes in exchange rates are also disclosed separately.

the item “total comparable” does not involve IFRS figures; instead, it

involves additional disclosures in accordance with internal reporting.

(1) Revenues

[€ million] 2013 2012

Revenues from services and sale of goods 39,107 39,296

thereof concession fees for rail transport 4,783 4,752

Total 39,107 39,296

– Special items 12 –

– Effects from changes in scope of consolidation –221 – 3

– Effects from changes in exchange rates 497 –

– Reclassification of other operating income to revenues –230 –

Total comparable 39,165 39,293

the revenues in the year under review are slightly lower than the

figure stated for the previous year figure (€ 189 million; – 0.5 %). this

decline is mainly attributable to negative exchange rates factors and

a downturn in performance at DB Schenker logistics and DB Schenker

Rail. Failure to achieve success in invitations to tender in the DB Bahn

Regional segment as well as much lower sales volumes in the field of

stationary energy at DB energie GmbH as a result of a change in the

market climate and massive price competition also had a negative

impact. on the other hand, positive effects from changes in the scope

of consolidation (in particular the acquisition of Veolia eastern

europe) and new services in the DB Arriva segment are partially

compensating for these declines. Adjusted effects from changes in the

scope of consolidation, the reclassification of other operating income

to revenues which took place as of January 1, 2013 (see section “Com-

parability with previous year” [page 211 et seq.]) and effects from changes

in exchange rates, the decline in revenues amounted to 0.3 %.

the slight increase in concession fees for rail services is attribut-

able to higher fees in the DB Arriva segment, which are attributable

to various factors including new services in Sweden and the Nether-

lands and which compensate for the decline in the DB Bahn Regional

segment due to failure to achieve success in invitations to tender.

the revenues include negative currency effects of € 497 million,

mainly relating to the segment DB Schenker logistics and DB Arriva.

the positive effects of reclassifying other operating income to revenues

amounted to € 230 million, and relate mainly to the DB Services seg-

ment as well as Subsidiaries/other, whereby the previous year figures

in segment reporting have been adjusted.

Movements in revenues broken down according to business seg-

ments and regions are set out in segment reporting.

(2) Inventory changes and internally produced and capitalized assets

[€ million] 2013 2012

Inventory changes – 15 –28

Other internally produced and capitalized assets 2,664 2,642

Total 2,649 2,614

– Special items – –

– Effects from changes in scope of consolidation – – 4



own investments relate mainly to construction and project business

in rail infrastructure and also the modernization of rolling stock as well

as the processing of appropriate spare parts.

(3) Other operating income

[€ million] 2013 2012

ServiceS for Third parTieS and Sale of maTerialS

Income from maintenance and repair 4 4

Sale of materials and energy 155 179

Other services for third parties 1) 513 676

672 859

Leasing and rental income 204 208

Income from claims for damages and cost refunds 1) 159 163

income from feder al gr anTS

Federal compensation payments 84 83

Other investment grants 4 7

Income from release of deferred items 144 144

Other Federal grants 184 158

416 392

Income from the disposal of property, plant and equipment and intangible assets 186 235

Income from disposal of non-current financial instruments 13 39

Income from reversal of provisions 416 775

oTher income

Income from third-party fees 29 32

Income from remediation of ecological burdens 66 58

Miscellaneous other income 1) 692 682

787 772

Total 2,853 3,443

– Special items –25 – 435

– Effects from changes in scope of consolidation – 6 0


– Reclassification of other operating income to revenues 230 –



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231consoliDateD financial statements NoteS to tHe coNSolIDAteD FINANcIAl StAteMeNtS

other operating income fell by € 590 million compared with the pre-

vious year. this decline is mainly attributable to special items in the

previous year resulting from the reversal of provisions, and is also due

to the reclassification of other operating income to revenues. the

reclassification relates mainly to the other services for third parties,

where in particular maintenance services carried out on rolling stock

of third parties as well as commissions of DB Vertrieb GmbH are shown

as revenues in the year under review. the other services for third parties

also include personnel cost refunds from the Federal Railroad Fund.

compared with the previous year, the income from government grants

has increased as a result of government payments in connection with

flood damage to the infrastructure.

the miscellaneous other income also includes income from the

utilization of provisions, from the settlement for the operation and

maintenance of level crossings in accordance with eG-Vo 1192 /69

Appendix IV and refunds for the operation of infrastructure on Swiss

territory.

(4) Cost of materials

[€ million] 2013 2012

coST of r aw maTerialS, conSumableS and SupplieS and purcha Sed goodS

Energy costs

Electricity 1,641 1,685

Electricity tax 167 203

Diesel, other fuel 1,368 1,339

Other energies 226 205

3,402 3,432

Other supplies and purchased goods 453 451

Price and value adjustment for materials – 105 – 83

3,750 3,800

coSTS of purcha Sed ServiceS

Purchased transport services 10,973 11,450

Cleaning, security, disposal, winter service 345 288

Commissions 157 155

Infrastructure usage expenses

Train-path usage 415 366

Station usage 29 27

444 393

Other purchased services 1) 769 835

12,688 13,121

Costs of maintenance and production 3,976 4,039

Total 20,414 20,960

– Special items – 48 –29

– Effects from changes in scope of consolidation – 110 – 3




the impairments on inventories recognized in cost of materials amount

to € 14 million in the year under review (previous year: € 21 million).

As a result of a decline in power consumption volumes, the costs

of energy have declined slightly despite higher statutory energy levies

and an increase in the proportion of renewable energies compared

with the previous year.

the costs of purchased services have declined by € 433 million

compared with the previous year (–3.3 %). this decline is attributable

mainly to lower purchased transport services resulting from exchange

rates factors and the performance downturn in the DB Schenker logis-

tics segment. on the other hand, the extensive winter service particu-

larly in the DB Netze track segment have resulted in an increase. the

costs of utilizing track have also increased as a result of higher infra-

structure costs at DB Arriva in Great Britain.

the costs of maintenance have declined slightly compared with

the previous year because the increase in maintenance costs in the

DB Netze track segment, which has also been due to the impact of the

floods, are opposed by lower costs of vehicle maintenance.

(5) Personnel expenses and employees

[€ million] 2013 2012

wageS and SalarieS

Employees 10,341 9,822

Civil servants assigned 1,254 1,312

11,595 11,134

Social SecuriT y expenSeS

Employees 1,917 1,817

Civil servants assigned 268 277

Costs for adjusting staffing levels 283 315

Retirement benefit expenses 320 274

2,788 2,683

Total 14,383 13,817

– Special items – 1 –24




the figure stated for personnel expenses (social security contribu-

tions) includes expense of € 899 million for defined contribution plans

(previous year: € 868 million).

the amount shown for adjusting staffing levels mainly comprises

costs of severance payment agreements and semi-retirement agree-

ments and restructuring costs. the reduction is mainly attributable to

lower allocations to provisions for obligations under personnel agree-

ments (see note (33) [ page 259 ff.]).

the retirement benefit expenses relate to active persons as well

as persons who are no longer employed in DB Group or their surviving

dependants. they are attributable primarily to service costs, employers’

contributions to the company top-up benefit scheme as well as the

contributions to pensions-Sicherungs-Verein aG (pension backing

association). the interest expense resulting from compounding the

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pension obligations and the expected income from plan assets is

shown in financial result. For detailed explanations regarding the

development of pension obligations, please refer to note (32) [ page

254 et seq.].

the activities of the civil servants in DB Group are based on statu-

tory allocation within the framework of the German Rail Restructuring

Act (eisenbahnneuordnungsgesetz; eNeuoG), Art. 2 section 12. For the

work of the allocated civil servants, DB AG reimburses to the Federal

Railroad Fund those costs which would be incurred if an employee

covered by collective bargaining arrangements were to be employed

instead of the allocated civil servant (pro forma calculation).

the increase in wages and salaries mainly reflects the increased

number of staff and also the impact of collective bargaining agree-

ments. this increase has been mitigated by exchange rates changes.

the development in the number of employees in DB Group,

converted to full-time employees (Fte) in each case, is shown in the

following:

[ FTE ]

At year end On average

2013 2012 2013 2012

Employees 266,337 255,908 263,224 253,554

Civil servants 29,316 31,600 30,541 32,683

employees 295,653 287,508 293,765 286,237

Trainees and dual degree students 11,936 11,497 10,616 9,996

Total 307,589 299,005 304,381 296,233

In the event of changes in the scope of consolidation, the employees

are included on a pro rata basis up to the time of deconsolidation or

after the date of initial consolidation.

the increase in the number of employees is attributable to the

acquisition of Veolia eastern europe and also mainly to the expansion

of business in the DB Arriva segment and the increase in the workforce

at DB Netze track and DB Bahn long-Distance as a result of the

recruitment of further staff.

the development in the number of employees, based on the

number of natural persons, is shown in the following:

[ natural persons ]

At year end

2013 2012

Employees 276,718 266,809

Civil servants 30,201 32,538

employees 306,919 299,347

Trainees and dual degree students 11,936 11,497

Total 318,855 310,844

(6) DepreciationIn the year under review, depreciation was slightly lower than the

previous year figure, and relates mainly to the property, plant and

equipment used as rail infrastructure as well as the rolling stock. It is

shown in the income statement less any recovery in amounts written

down in the reporting period.

For further explanations, please refer to the details concerning

the development in property, plant and equipment or intangible

assets under notes (13) [ page 235 ff.] and (14) [ page 238 ].

the depreciation includes special items arising from adjustments

(€ 325 million; previous year: € 435 million) as well as effects attrib -

utable to changes in the scope of consolidation (€ 15 million; previous

year: € 0 million) and changes in exchange rates (€ –11 million).

(7) Other operating expenses

[ € million ] 2013 2012

renTal and lea Sing expenSeS

Operating lease expenses 1,515 1,510

Conditional leasing expenses 5 7

1,520 1,517

Legal, consultancy and audit fees 207 207

Fees and contributions 239 229

Insurance expenses 172 176

Costs of advertising and sales promotion 1) 161 165

Printing and stationery costs 77 83

Travel and representation expenses 280 277

Research and non-capitalized development costs 10 12

oTher purcha Sed ServiceS

IT services 259 204

Other communication services 50 52

Other services 1) 535 497

844 753

Damages payable 154 180

Impairments recognized in relation to receivables and other assets 2) 48 36

Losses from disposal of property, plant and equipment and intangible assets 148 136

Expenses from disposal of non-current financial instruments 2 17

Other operating taxes 73 78

oTher expenSeS

Grants for third-party facilities 78 71

Other personnel-related expenses 181 152

Miscellaneous other expenses 623 631

Net of expenses and income consolidation 0 – 1

882 853

Total 4,817 4,719

– Special items – 108 – 126




1) Previous year’s figure adjusted.2) Including payments for receivables written down in the previous year.

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233consoliDateD financial statements NoteS to tHe coNSolIDAteD FINANcIAl StAteMeNtS

the other operating expenses have increased by € 91 million (+12.1 %)

compared with the previous year mainly as a result of higher other

purchased services. the increase in the other purchased services is

due to various factors, including purchased It services, which have

increased considerably as a result of the expansion of the world-wide

It landscape at DB Schenker logistics. this item also includes higher

costs of the employer image campaign.

the miscellaneous other expenses also disclose franchise payments

for transport contracts in Great Britain and allocations to provisions

for potential losses.

the legal, consultancy and audit fees comprise fees of € 22.2

million for the auditor of the consolidated financial statements (pre-

vious year: € 17.0 million); this figure comprises auditing services of

€ 11.0 million (previous year: € 10.8 million), other certification ser-

vices of € 4.0 million (previous year: € 3.3 million), tax advice services

of € 0.2 million (previous year: € 0.4 million) as well as other services

of € 7.0 million (previous year: € 2.5 million).

(8) Result from investments accounted for using the equity methodthe following contributions to earnings are recognized in the income

statement as a result of shares in companies over which significant

influence can be exercised or which are managed as joint ventures.

[€ million] 2013 2012

JoinT venTureS

Other –2 0

– 2 0

a SSociaTed companieS

METRANS a. s. 0 3

EUROFIMA 7 6

Other –2 5

5 14

Total 3 14

(9) Net interest income

[€ million] 2013 2012 2)

inTereST income

Net interest income from pension provisions 8 14

Other interest and similar income 32 49

Income from securities 1 0

operating interest income 41 63

Interest income from release of deferred items and other interest income 15 10

56 73

inTereST expenSeS

Other interest and similar expenses –737 –772

Net interest expenses for pension provisions – 100 – 112

Interest expenses from finance lease – 46 – 67

operating interest expenses – 883 – 951

Compounding of long-term provisions and liabilities – 52 – 127

– 935 – 1,078

Total – 879 – 1,005

– Special items 0 1

– Effects from changes in scope of consolidation 1 0

– Effects from changes in exchange rates – 3 –

Total comparable – 881 – 1,004

For information only:

Net operating interest income 1) – 842 – 865

1) The previous year adaptation as a result of IAS 19 R (€ 23 million) has been adjusted.


the decline in other interest and similar income as well as other interest

and similar expenses is due to various factors, including the fact that

the level of interest rates declined further in the year under review.

of the decline in other interest and similar income, € 10 million is

attributable to a change in the figure shown in other interest and

similar expenses. the interest expense attributable to finance leasing

has declined mainly as a result of the scheduled repurchase of various

concourse buildings (see note (28) [ page 245 ff.]).

the decline in the compounding of non-current provisions and

liabilities is mainly due to higher compounding in the previous year

resulting from the process of adjusting to a lower level of interest rates.

the interest income and expenses from the financial assets and

liabilities not measured at fair value through profit or loss amount to

€ 37 million (previous year: € 55 million) and € –784 million respectively

(previous year adjusted: € – 840 million).

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(10) Other financial result

[€ million] 2013 2012

Result from equity investment 0 1

Result from currency exchange gains 214 158

Result from currency-related derivatives –209 – 165

Result from other derivatives – 1 3

Result from disposal of financial instruments 0 0

Impairments on financial instruments –7 – 1

Other financial result – 12 – 9

Total – 15 – 13

– Special items – –

– Effects from changes in scope of consolidation 0 0

– Effects from changes in exchange rates – 3 –

Total comparable – 18 – 13

the result from currency exchange gains effects is attributable to the

conversion of foreign currency liabilities or receivables with an impact

on the income statement using the spot rate applicable on the refer-

ence date (IAS 21). the result from currency exchange gains effects

has to be netted with the result from currency-related derivatives.

Both factors have increased compared with the previous year as a

result of significant fluctuations in the rate of the euro against most

currencies and in particular against the Japanese yen. the result from

currency-related derivatives comprises the reclassification of cur-

rency-related changes in the market value of cash flow hedges recog-

nized under shareholders’ equity with no impact on the income state-

ment. the result from other derivatives relates to the development in

the market value of derivatives which are not classified as effective

hedges in accordance with IAS 39.

the impairments recognized in relation to financial instruments

mainly comprise an impairment of the holding in Railmax c.V.,

Nijmegen/the Netherlands.

(11) Taxes on income

[€ million] 2013 2012

Actual tax expense – 157 – 170

Income due to lapsing of tax obligations 11 14

actual taxes on income – 146 – 156

Deferred tax expenses (–)/income (+) 1) – 81 90

Taxes on income – 227 – 66

1) Previous year adjusted as a result of the effects of the first-time retrospective application of IAS 19 (revised June 2011).

the actual taxes on income have been incurred mainly at foreign Group

companies. the change in deferred taxes compared with the previous

year is mainly attributable to a change in the assessment of the extent

to which tax loss carry-forwards can be used in future.

Starting with the net profit before taxes and the theoretical taxes

on income calculated using a Group tax rate of 30.5 %, the following

reconciles the calculated taxes with the actual taxes on income:

[€ million] 2013 2012

Profits before taxes 876 1,525

Group tax rate in % 30.5 30.5

expected tax expense – 267 – 472

Additional recognition as well as usage of temporary differences and losses carried forward – 46 314

Income not subject to tax 39 56

Tax effects related to IAS 12.33 86 91

Expenses not deductible for tax purposes –21 –26

Differences in tax rates for foreign companies 18 20

Other effects 1) – 36 – 49

Taxes on income as reported – 227 – 66

Effective tax rate (%) 25.9 4.3


the reconciliation amount as detailed in IAS 12.33 relates exclusively

to additional tax write-downs resulting from the fact that tax-free

grants in the IFRS financial statements have been deducted directly

from the costs of purchasing the assets. It is not permissible for deferred

taxes to be created in relation to these temporary differences.

In the year under review, the other effects include in particular

effects attributable to the difference in the assessment bases of

different income tax bases, deferred taxes attributable to other

periods and the effects of permanent differences. In the year under

review, income from taxes attributable to other periods amounted to

€ 5 million (previous year: € 10 million).

(12) Earnings per shareunder IAS 33 (earnings per Share), undiluted earnings per share

are calculated by dividing the net profit of DB Group attributable to

the shareholders of DB AG by the weighted average number of shares

in issue during the year under review. undiluted earnings per share

correspond to diluted earnings per share.

[€ million] 2013 2012 1)


thereof attributable to minority interests – 8 6

thereof due to shareholders of DB AG 657 1,453

Number of issued shares 430,000,000 430,000,000

Earnings per share (€ per share)

undiluted 1.53 3.38

diluted 1.53 3.38


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235 Notes to the balance sheet

235Consolidated finanCial statements Notes to the coNsolidated fiNaNcial statemeNts

Notes to the balaNce sheet

(13) Property, plant and equipment

Property, plant and equipment [ € million ] Land

Com- mercial,

operating and other buildings

Permanent way

structures

Track infrastructure, signaling

and control

equipment

Rolling stock for

passenger and

freight transport

Technical equipment

and machinery

Other opera-

tional and office

equipment

Advance payments

and assets under con-

struction Total

CosT of purCha se and CosT of produCTion

As of Jan 1, 2013 4,365 6,561 13,539 16,025 25,545 1,788 4,088 3,305 75,216

Changes in the scope of consolidation 7 26 0 0 307 0 22 1 363

thereof additions 7 26 0 0 308 0 22 1 364

thereof disposals 0 0 0 0 – 1 0 0 0 – 1

Additions 1) 43 258 564 1,469 1,201 79 415 4,096 8,125

Investment grants – 1 – 110 – 459 – 1,263 – 18 –22 – 61 –2,877 – 4,811

Transfers 1 117 230 291 100 16 134 – 907 – 18

Transfers related to assets held for sale 0 1 0 0 – 43 0 – 10 – 1 – 53

Changes with no impact on the income statement 0 2 0 0 0 0 0 0 2

Disposals – 88 – 157 – 15 – 169 – 557 –78 –240 – 18 – 1,322

Currency translation difference – 9 – 37 – 1 0 – 61 – 9 –28 – 5 – 150

as of dec 31, 2013 4,318 6,661 13,858 16,353 26,474 1,774 4,320 3,594 77,352

aCCumulaTed depreCiaTion

As of Jan 1, 2013 – 680 –2,695 – 4,220 – 10,346 – 15,390 – 1,228 –2,742 –285 – 37,586

Changes in the scope of consolidation – 1 – 12 0 0 –202 0 – 17 0 – 232

thereof additions – 1 – 12 0 0 –203 0 – 17 0 – 233

thereof disposals 0 0 0 0 1 0 0 0 1

Depreciation – 9 –208 –202 – 636 – 1,311 – 94 – 386 0 – 2,846

Impairments –200 – 4 0 – 3 –26 – 5 – 8 0 – 246

Reversal of impairment losses 0 0 0 36 2 0 0 6 44

Transfers 1 9 0 2 –2 –2 – 11 3 0

Transfers related to assets held for sale 0 0 0 0 39 0 9 0 48

Disposals 33 99 10 149 514 73 203 0 1,081

Currency translation difference 2 19 1 0 35 5 19 0 81

as of dec 31, 2013 – 854 – 2,792 – 4,411 – 10,798 – 16,341 – 1,251 – 2,933 – 276 – 39,656

Carrying amount as of Dec 31, 2013 3,464 3,869 9,447 5,555 10,133 523 1,387 3,318 37,696


1) The additions include a figure of € 133 million for credits relating to previous years as well as € 10 million relating to borrowing rates with an average borrowing rate of 3.87 %.

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236 deutsChe Bahn Group 2013 aNNual RepoRt

Property, plant and equipment [ € million ] Land

Com- mercial,


Permanent way

structures

Track Infra- structure, signaling

andcontrol

equipment

Rolling stock for

passenger and

freight transport

Technical equipment

and machinery

Other opera-

tional and office

equipment

Advance payments

and assets under con-

struction Total


As of Jan 1, 2012 4,369 6,354 13,214 15,675 24,654 1,712 3,899 3,029 72,906

Changes in the scope of consolidation 0 0 0 0 44 0 4 0 48

thereof additions 0 0 0 0 44 0 5 0 49

thereof disposals 0 0 0 0 0 0 – 1 0 – 1

Additions 1) 87 200 556 1,397 1,323 79 407 3,889 7,938

Investment grants – 1 – 69 – 465 – 1,216 –29 – 17 – 45 –2,724 – 4,566

Transfers – 3 107 245 327 244 50 73 – 1,039 4


Changes with no impact on the income statement 0 0 0 0 0 0 0 0 0

Disposals – 93 – 59 – 12 – 159 –748 – 44 –257 147 – 1,225

Currency translation difference 6 28 1 1 57 8 7 3 111

as of dec 31, 2012 4,365 6,561 13,539 16,025 25,545 1,788 4,088 3,305 75,216


As of Jan 1, 2012 – 477 –2,505 – 4,033 – 9,766 – 14,695 – 1,171 –2,603 –284 – 35,534

Changes in the scope of consolidation 0 0 0 0 – 32 0 – 3 0 – 35

thereof additions 0 0 0 0 – 32 0 – 4 0 – 36

thereof disposals 0 0 0 0 0 0 1 0 1

Depreciation – 8 –207 – 195 – 644 – 1,267 – 94 – 369 0 – 2,784

Impairments –216 – 9 – 1 –73 – 59 –2 –7 – 1 – 368

Reversal of impairment losses 0 0 0 2 0 0 2 0 4

Transfers 0 –2 0 – 6 2 –2 9 0 1


Disposals 22 38 10 141 694 46 235 0 1,186

Currency translation difference – 1 – 10 – 1 0 – 33 – 5 – 6 0 – 56

as of dec 31, 2012 – 680 – 2,695 – 4,220 – 10,346 – 15,390 – 1,228 – 2,742 – 285 – 37,586



1) The additions include a figure of € 94 million for credits relating to previous years as well as € 6 million relating to borrowing rates with an average borrowing rate of 4.07 %.

impairments of € 246 million (previous year: € 368 million) mainly relate

to real estate of dB Netze track (€ 200 million) as well as vehicles and

other assets of arriva malta limited, Qormi/malta (€ 27 million).

Reversals of impairments of € 44 million (previous year: € 4 million)

related mainly to track of dB Netze track.

in the year under review, the carrying amount disposals for assets

under construction included carrying amount disposals of € 56 million

(previous year: € 147 million). these are attributable to the repayment

of investment grants which had been received in previous years and

deducted from assets.

financial debt was backed by property, plant and equipment with

carrying amounts of € 46 million (as of december 31, 2012: € 159

million). this is mainly applicable to rolling stock and buses which

are used as collateral for loans and which are in use at the operating

companies in the segments dB arriva, dB Bahn Regional and dB Bahn

long-distance. Restrictions to rights of disposal in relation to prop-

erty, plant and equipment existed to the extent of € 51 million (as of

december 31, 2012: € 51 million) mainly at südbadenBus Gmbh, s.a.B.

autoservizi s.R.l, Bergamo/italy and s.i.a. societa italiana autoservizi

s.p.a., Brescia /italy.

property, plant and equipment includes rented assets which are

shown separately in the following overview. the rented property,

plant and equipment comprises assets which are substantially but not

legally owned by dB Group, so that the underlying lease agreements

have to be classified as finance leases.

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Leased assets [ € million ] Land

Com- mercial,


Permanent way

structures

Track infrastructure, signaling

and control

equipment

Rolling stock for

passenger and

freight transport

Technical equipment

and machinery

Other opera-

tional and office

equipment Total

a sseTs lea sed from Third parTies under finanCe lea se

Cost of purchase and cost of production 20 370 – – 738 3 0 1,131

Accumulated depreciation –2 – 143 – – – 469 –2 0 – 616

Carrying amount as of Dec 31, 2013 18 227 – – 269 1 0 515

Cost of purchase and cost of production 33 809 19 – 899 4 0 1,764

Accumulated depreciation – 14 –240 – 3 – – 516 –2 0 – 775

Carrying amount as of Dec 31, 2012 19 569 16 – 383 2 0 989

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the figure shown for the commercial, operating and other buildings

under leased assets also relates to concourse buildings of dB station

& service aG. the decline is attributable to the repurchase of leased

concourse buildings in the year under review. the figure shown under

rolling stock for passenger and freight transport relates mainly to

rolling stock used by the transport companies of dB Group (locomo-

tives, freight wagons and buses). the additions in the year under

review amounted to costs of purchase of € 6 million and depreciation

of € 62 million.

the assets which are leased by way of an operating lease and which

have in certain cases been calculated on the basis of retrospective

calculations and also on the basis of our own analyses are shown for

land and buildings with a residual carrying amount of € 1,040 million

with cumulative depreciation of € 404 million (as of december 31, 2013:

residual carrying amount of € 1,016 million and cumulative depreciation

of € 375 million) and for moveable assets (mainly rolling stock) with a

residual carrying amount of € 2,143 million with cumulative depre-

ciation of € 3,411 million (as of december 31, 2012: residual carrying

amount of € 2,160 million and cumulative depreciation € 3,244 million).

the residual carrying amounts of the real estate and moveable assets

are in line with the corresponding previous year figures. Rental and

leasing income resulting from the rental and leasing of these assets are

expected to be received in future years as detailed in the following:

Expected rental and leasing payments (nominal values) [ € million ]

Residual maturity

TotalLess than

1 year1 to 2 years

2 to 3 years

3 to 4 years

4 to 5 years

More than 5 years

Total more than

1 year

deC 31 , 201 3

Minimum lease payments 452 268 227 181 157 818 1,651 2,103

deC 31 , 201 2

Minimum lease payments 449 273 223 186 157 825 1,664 2,113

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the acquired intangible assets mainly comprise acquired customer and

franchise contracts (about € 465 million carrying amount), franchises

and rights (about € 272 million carrying amount) and software (about

€ 130 million carrying amount).

there are no other legal, regulatory, contractual, competition-

related, economic or other factors which limit the useful life of the

acquired arriva brand (carrying amount € 34 million).

No impairments were recognized (previous year: € 12 million).

segment reporting shows the allocation of reported goodwill to

the various segments.

(15) Investments accounted for using the equity method

[ € million ] 2013 2012

As of Jan 1 529 579

Additions 0 0

Disposals 0 – 55

Group share of profit 3 14

Capital increase 6 2

Other movements in capital 0 0

Dividends received – 9 – 18

Impairments – 8 0

Transfers 0 0

Currency translation differences – 6 3

Other valuation – 4 4

As of Dec 31 511 529

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(14) Intangible assets

Intangible assets [ € million ]

Capitalized development

costs – products in use

Capitalized development

costs – products under

development

Purchased intangible

assets GoodwillPayments made

on account Total

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012


As of Jan 1 37 30 109 82 2,101 1,999 3,021 2,971 1 1 5,269 5,083

Changes in the scope of consolidation 0 0 0 1 44 2 44 9 0 0 88 12

thereof additions 0 0 0 1 44 2 44 9 0 0 88 12

thereof disposals 0 0 0 0 0 0 0 0 0 0 0 0

Additions 2 4 45 45 52 66 0 0 0 0 99 115

Investment grants 0 0 0 0 – 1 0 0 0 0 0 – 1 0

Transfers 0 3 – 11 –20 28 14 1 0 0 0 18 – 3

Transfers related to assets held for sale 0 0 0 0 – 6 0 0 0 0 0 – 6 0

Changes with no impact on the income statement 0 0 0 0 6 20 0 0 0 0 6 20

Disposals 0 0 – 1 0 – 82 – 15 0 – 1 0 0 – 83 – 16

Currency translation difference 0 0 –2 1 –22 15 – 84 42 0 0 – 108 58

as of dec 31 39 37 140 109 2,120 2,101 2,982 3,021 1 1 5,282 5,269


As of Jan 1 – 31 –29 0 0 – 1,033 – 865 – 19 –20 0 0 – 1,083 – 914

Changes in the scope of consolidation 0 0 0 0 –2 – 1 0 0 0 0 – 2 – 1

thereof additions 0 0 0 0 –2 – 1 0 0 0 0 – 2 – 1

thereof disposals 0 0 0 0 0 0 0 0 0 0 0 0

Depreciation – 3 –2 0 0 – 177 – 166 0 0 0 0 – 180 – 168

Impairments 0 0 0 0 0 – 12 0 0 0 0 0 – 12

Reversal of impairment losses 0 0 0 0 0 0 0 0 0 0 0 0

Transfers 0 0 0 0 0 – 1 0 0 0 0 0 – 1

Transfers related to assets held for sale 0 0 0 0 6 0 0 0 0 0 6 0

Disposals 0 0 0 0 81 15 0 1 0 0 81 16

Currency translation difference 0 0 0 0 11 – 3 0 0 0 0 11 – 3

as of dec 31 – 34 – 31 0 0 – 1,114 – 1,033 – 19 – 19 0 0 – 1,167 – 1,083

Carrying amount as of Dec 31 5 6 140 109 1,006 1,068 2,963 3,002 1 1 4,115 4,186

Carrying amount as of Dec 31 of previous year 6 1 109 82 1,068 1,134 3,002 2,951 1 1 4,186 4,169

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the figure shown in the balance sheet as of december 31, 2013 is

mainly attributable to the shares held in the associated companies

euRofima, Basel /switzerland, Barraqueiro sGps sa, lisbon/portugal

and Bls cargo aG, Bern/switzerland. the negotiability of the shares

in euRofima is limited.

(16) Deferred tax assets and liabilities


2013Dec 31,

2012

Deferred tax assets in respect of temporary differences 1) 597 555

Deferred tax assets in respect of losses carried forward 807 1,029

Total 1,404 1,584


No deferred tax assets have been created in relation to the following

losses carried forward and temporary differences:


2013Dec 31,

2012

Tax loss carry-forwards for which no deferred tax asset has been created 13,897 13,207

Temporary differences for which no deferred tax asset has been created 1) 4,312 4,561

Temporary differences for which IAS 12.24b in conjunction with 12.33 prohibits recognition of a deferred tax asset 3,501 3,795

Total 21,710 21,563


the losses carried forward are mainly attributable to the tax law treat-

ment of federal Government grants paid in previous years to dB aG

in accordance with section 21 (5) and section 22 (1) deutsche Bahn

establishment act (deutsche Bahn Gründungsgesetz; dBGrG) as a

contribution.

on the basis of current law, the domestic losses carried forward

are fully allowable in accordance with current legislation (in terms of

the actual amount and justification).

the temporary differences which are not permitted to be recog-

nized in accordance with ias 12.24b in conjunction with 12.33 relate

exclusively to additional tax depreciation from previously received

tax-free investment grants.

the following deferred tax assets and deferred tax liabilities

shown in the balance sheet resulted from statement and valuation

differences for the individual balance sheet items and tax losses car-

ried forward:

As of Dec 31 [ € million ]

Deferred tax assets Deferred tax liabilities

2013 2012 2013 2012

non - CurrenT a sseTs

Property, plant and equipment 90 77 160 184

Intangible assets 1 2 133 160

Investments accounted for using the equity method 1 1 8 10

Other financial assets 2 0 4 2

CurrenT a sseTs

Inventories 0 0 2 2

Trade receivables 20 31 3 4

Other financial assets 4 6 11 4

Assets held for sale 0 0 1 9

non - CurrenT liabiliTies

Financial debt 68 68 18 5

Other liabilities 42 37 5 18

Derivative financial instruments 15 58 9 15

Pension obligations 1) 129 108 4 0

Other provisions 214 194 4 1

CurrenT liabiliTies

Financial debt 26 36 15 6

Other liabilities 47 38 11 13

Other provisions 110 92 7 4

Losses carried forward 807 1,029 0 0

subtotal 1,576 1,777 395 437

Offsetting 2) – 172 – 193 – 172 – 193

Amount stated in the balance sheet 1,404 1,584 223 244


2) To the extent permitted by IAS 12 (Income Taxes).

tax assets and liabilities are netted if they exist in relation to the same

tax authority, if they are of identical maturity and if they relate to the

same tax subject.

of the deferred tax assets of € 1,576 million (as of december 31,

2012: € 1,777 million), a figure of € 230 million (as of december 31, 2012:

€ 315 million) will probably be realized in the course of the next 12

months. of the deferred tax liabilities of € 395 million (adjusted as of

december 31, 2012: € 437 million), a figure of € 49 million (as of

december 31, 2012: € 42 million) will probably be realized in the course

of the next 12 months.

deferred tax assets of € 81 million (as of december 31, 2012:

€ 148 million) shown directly in equity and deferred tax liabilities of

€ 9 million (as of december 31, 2012: € 15 million) are included in the

deferred taxes shown in the balance sheet.

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(17) Available-for-sale financial assets

[ € million ]

Investments in subsidiaries

Other investments Securities Total

2013 2012 2013 2012 2013 2012 2013 2012

As of Jan 1 0 0 13 14 8 4 21 18

Currency translation differences 0 0 0 0 – 1 0 – 1 0

Changes in scope of consolidation 0 0 0 0 0 0 0 0

Additions 0 0 0 0 0 0 0 0

Disposals through sale 0 0 0 0 0 0 0 0

Other disposals 0 0 – 4 0 0 0 – 4 0

Fair value changes 0 0 0 0 0 0 0 0

Reclassifications 0 0 0 0 0 4 0 4

Impairment losses 0 0 – 1 – 1 0 0 – 1 – 1

Other 0 0 1 0 0 0 1 0

As of Dec 31 0 0 9 13 7 8 16 21

Non-current portion 0 0 9 13 2 4 11 17

Current portion 0 0 0 0 5 4 5 4

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(18) Inventories


2013Dec 31,

2012

Raw materials, consumables and supplies 1,069 1,092

Unfinished products, work in progress 149 155

Finished products and goods 51 48

Advance payments 4 5

Impairments – 325 – 311

Total 948 989

(19) Receivables and other assets

[ € million ]

Trade receiv-

ables

Receiv- ables from

financingAdvance

paymentsOther

assets 1) Total

deC 31 , 201 3

Gross value 4,336 92 217 761 5,406

Impairments –214 –2 0 – 50 – 266

Net value 4,122 90 217 711 5,140

thereof due from related parties 44 12 0 142 198

deC 31 , 201 2

Gross value 4,457 73 172 707 5,409

Impairments –231 – 1 0 – 41 – 273

Net value 4,226 72 172 666 5,136

thereof due from related parties 54 9 0 103 166


the impairments for the financial instruments classified in accordance

with ifRs 7 have developed as follows (ifRs 7.16):

[ € million ]

Trade receiv-

ables

Receiv- ables from

financingOther

assets Total

As of Jan 1, 2013 –231 – 1 – 41 – 273

Additions –28 0 – 18 – 46

Release 35 0 2 37

Amounts used 13 0 7 20

Changes in the scope of consolidation – 6 0 0 – 6

Currency translation differences 3 – 1 0 2

As of Dec 31, 2013 – 214 – 2 – 50 – 266

As of Jan 1, 2012 –250 – 1 – 32 – 283

Additions –23 0 – 10 – 33

Release 28 0 1 29

Amounts used 15 0 0 15

Changes in the scope of consolidation 0 0 0 0

Currency translation differences – 1 0 0 – 1

As of Dec 31, 2012 – 231 – 1 – 41 – 273

individual allowances are created in relation to receivables if there

are objective indications of an impairment. in the case of identical

receivables (portfolios of receivables) which cannot be identified as

impaired individually, global allowances (based on experience) are

recognized on the basis of the age structure of such receivables. any

impairments which are recognized are deducted from financial assets

on the assets side of the balance sheet. previous impairments are

reversed if the reasons for the original impairments are no longer

applicable.

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the total amount of allocations to impairments of € 46 million (previous

year: € 33 million) consists of individual allowances of € 39 million

(previous year: € 25 million) and global individual allowances of

€ 7 million (previous year: € 8 million).

the reversals have recognized reductions of individual allowances

of € 16 million (previous year: € 26 million) and reductions of global

individual allowances of € 21 million (previous year: € 3 million).

expenses of € 49 million were incurred for the complete derecognition

of receivables and other assets (previous year: € 39 million).

income of € 9 million was reported for amounts received in relation

to previously derecognized receivables and other assets (previous

year: € 6 million).

the following overview shows the maturity structure of the receiv-

ables for the financial instruments classified in accordance with ifRs 7

and the advanced payments which have been made:

[ € million ]

Residual maturity

TotalLess than

1 year1 to 2 years

2 to 3 years

3 to 4 years

4 to 5 years

More than 5 years

Total more than

1 year

deC 31 , 201 3

Trade receivables 4,113 6 1 1 0 1 9 4,122

Receivables from financing 55 18 2 8 1 6 35 90

Advance payments 185 32 0 0 0 0 32 217

Other assets 649 4 3 3 1 51 62 711

Total 5,002 60 6 12 2 58 138 5,140

thereof non-financial assets 345 33 0 0 1 44 78 423

deC 31 , 201 2

Trade receivables 4,202 18 4 0 0 2 24 4,226


Advance payments 147 25 0 0 0 0 25 172

Other assets 1) 630 16 1 3 0 16 36 666

Total 5,019 62 22 5 8 20 117 5,136

thereof non-financial assets 2) 347 28 0 0 0 7 35 382

1) Adjusted as a result of the effects of the first-time retrospective application of IAS 19 (revised June 2011). 2) Allocation adjusted.

æ

the slight decrease in trade receivables mainly relates to the segments

dB schenker logistics and subsidiaries/other; opposite developments

were reported for the segment dB schenker Rail.

the increase in the other non-current assets is due to the fact

that there was theoretical surplus cover in some pension plans as of

december 31, 2013 (pension asset); in accordance with the regulations

of ias 19, this is not permitted to be netted against the amount of

provisions from the other pension plans, and accordingly has to be

shown separately.

as a result of the large number of customers in the various operating seg-

ments, there is no evidence of any concentration of credit risks with

trade receivables.

the fair values of the receivables and other assets are to a large

extent equivalent to the carrying amounts.

the maximum default risk is essentially equivalent to the carrying

amount in each case. No collateral is normally held.

the gross amounts of the individually adjusted receivables as well

as the age structure in accordance with ifRs 7.37a are shown in the

following:

[ € million ]

Gross value

adjusted

Neither impaired

nor overdue

Not impaired but overdue within the following period of time (days)

Less than 29 30 to 59 60 to 89 90 to 179 180 to 359

More than 359

deC 31 , 201 3

Trade receivables 222 2,883 901 139 56 54 36 45


Other assets 48 354 103 9 5 11 9 13

Total 278 3,301 1,011 148 61 66 47 68

deC 31 , 201 2

Trade receivables 215 2,973 870 162 60 64 63 50


Other assets 40 374 39 11 3 7 10 12

Total 255 3,406 913 173 63 72 74 70

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as of the closing date, there are no indications that debtors of the

receivables which are neither impaired nor overdue will not meet their

payment obligations.

(20) Income tax receivables the income tax receivables mainly relate to advance payments which

have been made as well as allowable withholding taxes.

(21) Derivative financial instruments the volume of hedges which have been taken out is shown in the

following overview of nominal values:

[ € million ] 2013 2012

inTeresT-ba sed ConTr aCTs

Interest swaps 191 195

191 195

CurrenCy-ba sed ConTr aCTs

Currency swaps 1,097 937

Currency forwards 796 882

Cross-currency swaps 5,091 3,965

6,984 5,784

Volumes 2013 2012

oTher ConTr aCTs

Diesel (1,000 tons) 1,667 1,861

HSL (1,000 tons) 288 265

Hard coal (1,000 tons of coal equivalent) 2,234 2,054

the volume of interest swaps declined slightly to € 191 million; no new

business was conducted. the nominal value of the cross-currency

swaps increased in the year under review considerably by € 1,126 million

to € 5,091 million, as in particular the hedges for the issued currency

bonds, which were converted into euros in each case, considerably

compensated for expiring transactions.

the portfolio of currency swaps has increased by € 160 million to

€ 1,097 million. the volume of currency forwards declined by € 86 million

to € 796 million due to reference date factors, although the number

and also the volume of traded currency forwards increased compared

with the previous year as a result of improved hedging strategies of

the subsidiaries.

in the year under review, the volume of energy price hedges was

roughly in line with the previous year’s level. the volume of diesel price

hedges declined by 0.2 million tons to 1.7 million tons, and the volume

of coal price hedges increased by 0.2 million tons to 2.2 million tons.

all derivative financial instruments are marked-to-market on the

reporting date. the following overview shows the structure of the item

stated in the balance sheet depending on the type of underlying hedge:

[ € million ]

Assets Liabilities

2013 2012 2013 2012


Interest swaps 0 0 26 34

Interest forwards 0 0 0 0

0 0 26 34


Currency swaps 6 8 7 4

Currency forwards 4 3 4 2

Other currency derivatives 0 0 0 0

Cross-currency swaps 25 103 309 222

35 114 320 228

oTher ConTr aCTs

Energy price derivatives 51 87 96 53

51 87 96 53

Total 86 201 442 315

Interest-based contracts 0 0 27 34

Currency-based contracts 25 105 249 197

Other contracts 49 73 67 35

non-current portion 74 178 343 266

Current portion 12 23 99 49

Cash flow hedGes

in order to minimize the interest rate and exchange rate risk, foreign

currency issues as well as internal foreign currency loans are translated

into euros, and floating-rate financial liabilities are generally con-

verted into fixed-income financial liabilities. energy price hedging was

intended to reduce price fluctuations attributable to energy sourcing.

the negative valuation of the interest rate swaps is due to a conti-

nuous decline in the level of interest rates since the transactions were

concluded. the strengthening of the euro against most currencies, and

in particular the weakness of the Japanese yen, resulted in a strong

decline in assets and an increase in liabilities for the cross-currency

swaps.

the development in the value of the currency swaps is mainly attri-

butable to the lower volume of such instruments.

the decline in the market value of the energy price derivatives is

mainly due to lower futures prices on the oil and coal markets.

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the market values of the cash flow hedges are shown as follows under

assets and liabilities:

[ € million ]

Assets Liabilities

2013 2012 2013 2012


Interest swaps 0 0 26 34

0 0 26 34


Currency swaps 6 8 7 4



31 111 316 226

oTher ConTr aCTs


51 87 96 53

Total 82 198 438 313

Interest-based contracts 0 0 27 34


Other contracts 49 73 67 35



the following tables show the periods within which the hedged cash

flows of the underlyings (interest and redemption payments as well

as energy payments) will occur:

Nominal value [ million ]

Due in

2014 2015 2016 2017 2018 2019 ff.

redempTion

EUR – – – – – –

USD 3 – 400 – – 250

GBP 363 48 43 17 2 433

CHF 2 6 – 525 – 1,325

JPY 55,000 – – – – 54,600

HKD 300 – 486 – – –

NOK – – 2,120 – – 1,500

SEK 4,655 867 117 117 877 918

DKK 131 143 136 115 321 54

SGD 308 61 – – 177 –

NZD – – – 10 – –

MXN 29 – – – – –

PLN 683 264 2 2 2 15

CZK 234 38 33 21 16 314

HUF 917 170 170 170 1,970 467

RON 29 – – – – –

SAR – 13 – – – –

AED 11 – – – – –

Nominal value [ million ]

Due in

2014 2015 2016 2017 2018 2019 ff.

inTeresT paymenTs

EUR 1 1 2 2 2 5

USD 11 11 16 8 9 3

GBP 19 16 15 14 14 107

CHF 28 28 28 28 21 68

JPY 1,562 658 658 658 658 1,190

HKD 16 10 10 – – –

NOK 131 131 131 60 60 418

SEK 163 100 67 63 59 104

DKK 23 20 17 14 13 1

SGD 11 8 6 6 3 –

NZD 1 1 1 1 – –

MXN 0 – – – – –

PLN 40 11 1 1 1 1

CZK 5 10 9 9 9 36

HUF 189 172 157 139 123 67

RON 0 – – – – –

SAR 0 0 – – – –

AED – – – – – –

energy [ € million ]

Diesel 396 339 197 118 37 27

HSL 45 44 23 20 2 –

Hard coal 70 64 30 24 2 –

the interest payments are normally reflected in the income statement

in the above-mentioned periods. the period during which interest is

recognized in the income statement may differ from the maturities of

the interest payments.

the energy payments are recognized in the income statement in

the periods in which they fall due.

in the case of interest and cross-currency hedges, the effective-

ness of the hedge is assessed prospectively using the critical terms

match method. this method is used because the major valuation

parameters of the underlying and hedges are identical. the effective-

ness is measured retrospectively as of each balance sheet date by

using the dollar-offset method. in this method, the development in

value of the hedge which is actually taken out is compared with the

development in value of a theoretical hedge in which all valuation-

relevant parameters are identical to those of the underlying. in the

case of energy price derivatives, the effectiveness of the hedge is

assessed prospectively using the linear regression. the retrospective

effectiveness measurement is carried out as of every balance sheet

date by means of linear regression. the changes in the market values

of the underlying are compared with the changes in the market value

of the hedging instrument. the resultant quotient determines the

inefficiency.

the inefficiencies of cash flow hedges of the energy price deriva-

tives recognized in the income statement amounted to € 0 million in

the year under review (previous year: € –1 million).

æ

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non-hedGe derivatives

currency forwards taken out to hedge operations are normally classified

as non-hedge derivatives. there has only been a slight change in the

market values at the end of the year compared with the previous year.

the market values of the non-hedge derivatives are shown under

assets and liabilities as follows:

[ € million ]

Assets Liabilities

2013 2012 2013 2012


Interest forwards 0 0 0 0

0 0 0 0



Other currency derivatives 0 0 0 0


4 3 4 2

oTher ConTr aCTs


0 0 0 0

Total 4 3 4 2




(22) Cash and cash equivalents


2013Dec 31,

2012

Cash at banks and in hand 2,859 2,173

Cash equivalents 2 2

Total 2,861 2,175

Effective interest rate on short-term bank deposits (%) 0.17 0.39

Average term of short-term bank deposits (months) 0.1 0.1

the interest rates for current bank deposits were in a range of between

0.0 % and 0.7 % (previous year: 0.0 % to 1.9 %). With regard to cash and

cash equivalents, please refer to section “Notes to the statement of

cash flows” [ page 261 f. ].

(23) Held-for-sale assets and liabilities the addition of € 5 million relates to the property, plant and equip-

ment of arriva malta limited, which was sold with the agreement of

January 2, 2014 (closing).

(24) Subscribed capital the share capital of dB aG is € 2,150 million. it consists of 430,000,000

no-par value bearer shares. all shares are held by the federal Republic

of Germany.

(25) Reservesa) Capital reserves

capital reserves comprise reserves which have not been part of

earnings.

B) reserve resultinG from valuation with no

impaCt on profit or loss

Reserve for currency translation differences

the currency translation differences resulting from the method of

functional currency (ias 21) are shown separately as part of consoli-

dated shareholders’ equity.

Reserve for market valuation of securities

the reserve includes the market changes of financial instruments

which have been classified as “available-for-sale financial assets” and

which have to be recognized with no impact on profit or loss. the

reserve has to be reversed to the income statement or eliminated

when a financial instrument is sold or in the event of a permanent

reduction in the market value of a financial instrument.

the measurement of financial instruments directly in equity has

resulted in the creation of deferred tax assets of € 0 million in the

year under review (as of december 31, 2012: deferred tax assets of

€ 1 million).

Reserve attributable to the market valuation of cash flow hedges

the development in the reserve is shown in the following:

[ € million ] 2013 2012

As of Jan 1 – 119 23

Changes in fair value 1) –256 – 319

Reclassifications

Financial result 209 165

Net interest income 1) 49 42

Cost of materials 1) –23 – 88

Changes in deferred taxes – 41 58

As of Dec 31 – 181 – 119


Reclassification effects relate exclusively to this reserve.

Other changes in the reserves

this item mainly shows amounts resulting from transactions in relation

to reductions or increases in minority interests between the share-

holders of dB aG and the minority shareholders.

(26) Retained earningsthe generated shareholders’ equity comprises the entire net profits gen-

erated since January 1, 1994 less the goodwill offset under hGB up to

december 31, 2002 as well as the dividends paid to the shareholders.

this item also shows the impact on shareholders’ equity attri-

butable to the first-time adoption of ifRs if they are not included in

the reserves attributable to valuation with no impact on the income

statement.

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(27) Minority interests minorities comprise the share of third parties in the net assets of

consolidated subsidiaries. third-party interests in the currency reserve

amount to € – 2 million (as of december 31, 2012: € 3 million). With the

above exception, there are no third-party interests in relation to

reserves.

(28) Financial debt this item shows all interest-bearing liabilities including the interest-

free loans stated with their present values. the maturity structure of

financial debt is as follows:

[ € million ]

Residual maturity

TotalLess than

1 year1 to 2 years

2 to 3 years

3 to 4 years

4 to 5 years

More than 5 years

Total more than

1 year

deC 31 , 201 3

Interest-free loans 215 206 196 176 168 683 1,429 1,644

Bonds 403 698 1,520 1,782 1,894 9,157 15,051 15,454

Commercial paper 0 0 0 0 0 0 0 0

Bank borrowings 39 5 404 0 0 402 811 850

EUROFIMA loans 519 0 0 0 0 200 200 719

Finance lease liabilities 59 160 155 19 60 181 575 634

Other financial liabilities 12 0 0 0 0 0 0 12

Total 1,247 1,069 2,275 1,977 2,122 10,623 18,066 19,313

thereof due to related companies 736 206 196 176 168 883 1,629 2,365

deC 31 , 201 2

Interest-free loans 215 206 197 188 169 814 1,574 1,789

Bonds 749 508 696 1,563 1,795 8,785 13,347 14,096

Commercial paper 0 0 0 0 0 0 0 0

Bank borrowings 80 10 6 403 0 402 821 901

EUROFIMA loans 0 519 0 0 0 200 719 719

Finance lease liabilities 449 69 164 158 19 239 649 1,098

Other financial liabilities 10 0 0 0 0 0 0 10

Total 1,503 1,312 1,063 2,312 1,983 10,440 17,110 18,613

thereof due to related companies 221 725 197 188 169 1,016 2,295 2,516

æ

the following fair values are summarized compared with the carrying

amounts:

[ € million ]

Carrying amount

2013Fair value

2013

Carrying amount

2012Fair value

2012

Interest-free loans 1,644 1,888 1,789 2,068

Bonds 15,454 16,526 14,096 15,742

Bank borrowings 850 851 901 903

EUROFIMA loans 719 765 719 800

Finance lease liabilities 634 758 1,098 1,266

Other financial liabilities 12 12 10 10

Total 19,313 20,800 18,613 20,789

the differences between the carrying amounts and the fair values of

the financial debt are due to the usually changed market interest rates

for financial debt with a comparable risk profile. in view of the short

maturities involved and also in view of the fact that interest charged

is closely linked to market rates, there are no significant differences

between the carrying amounts and the fair values of other financial

liabilities.

interest-free loans are attributable almost exclusively to financing

provided by the federal Republic of Germany for capital expenditures

in expanding and replacing track. this is based on the responsibility

for the transport needs of the public which is anchored in section 87e

(4) of the Basic law and specified in the federal track expansion act

(Bundesschienenwegeausbaugesetz; BsWaG).

the arrangements for repaying the loans are detailed in individual

and collective financing agreements. in general, the loans are repaid

in equal annual installments, which are based on the corresponding

annual depreciation applicable for the financed assets.

interest-free loans have developed as follows:

[ € million ] 2013 2012

As of Jan 1 1,789 2,092

Redemption –220 – 385

Reclassification 0 0

Compounding 75 82

As of Dec 31 1,644 1,789

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[ € million ]Volume of

issue Issue

currency

Residual maturity

(years)

Effective interest

rate (%)

Carrying amount

2013Fair value

2013

Carrying amount

2012Fair value

2012

unlisTed bonds

Total DB Finance 395HKD,

JPY, EUR 0.5 –12.9 359 372 384 413

Total 359 372 384 413

lisTed bonds of db finanCe:

Bond 2001–2013 750 EUR – 5.250 – – 749 782

Bond 2003 –2018 1,000 EUR 4.2 5.000 994 1,138 992 1,183

Bond 2003 –2015 700 EUR 1.5 4.600 698 739 696 761

Bond 2004 –2018 300 EUR 4.2 4.850 299 342 299 354

Bond 2004 –2016 500 EUR 2.9 4.300 499 548 499 564

Bond 2004 –2014 366 JPY 0.9 1.700 345 350 440 452

Bond 2006 –2018 300 EUR 4.2 4.510 303 342 303 355

Bond 2006 –2017 500 EUR 3.0 4.116 498 546 498 562

Bond 2007–2019 600 EUR 5.6 5.110 597 705 597 731

Bond 2009 –2019 1,000 EUR 5.2 4.923 996 1,158 995 1,208

Bond 2009 –2021 600 EUR 7.8 4.445 597 692 597 723

Bond 2009 –2017 500 EUR 3.8 3.774 498 545 498 561

Bond 2010 –2020 500 EUR 6.5 3.572 498 545 498 563

Bond 2010 –2025 500 EUR 11.5 3.870 494 546 494 580

Bond 2010 –2020 410 JPY 6.8 1.150 325 334 413 426

Bond 2010 –2022 500 EUR 8.8 3.464 497 539 496 562

Bond 2010 –2020 567 CHF 6.4 1.924 605 637 614 667

Bond 2011–2021 700 EUR 7.4 3.797 698 774 698 804

Bond 2011–2016 500 EUR 2.5 3.003 498 525 498 538

Bond 2011–2017 323 CHF 4.0 1.566 305 318 310 328

Bond 2011–2016 160 NOK 2.7 3.551 149 154 169 176

Bond 2011–2016 78 HKD 2.8 2.021 78 79 82 84

Bond 2011–2016 146 USD 2.9 FRN 145 145 152 155

Bond 2012–2017 124 CHF 3.6 0.799 122 124 124 127

Bond 2012–2024 83 CHF 10.1 1.586 81 80 82 86

Bond 2012–2024 500 EUR 10.2 3.119 495 514 494 540

Bond 2012–2022 495 GBP 8.5 2.821 477 464 487 503

Bond 2012–2017 368 GBP 3.8 1.456 359 356 366 369

Bond 2012–2023 400 EUR 9.1 2.116 396 383 396 398

Bond 2012–2072 75 GBP 58.9 4.524 72 75 73 81

Bond 2012–2016 97 NOK 2.7 3.179 90 92 103 106

Bond 2013 –2018 300 EUR 4.1 FRN 299 300 – –

Bond 2013 –2028 50 EUR 14.1 2.707 50 48 – –

Bond 2013 –2025 202 NOK 11.2 4.017 179 185 – –

Bond 2013 –2023 386 CHF 9.6 1.425 386 380 – –

Bond 2013 –2026 497 GBP 12.6 3.351 498 478 – –

Bond 2013 –2023 500 EUR 9.7 2.578 497 497 – –

Bond 2013 –2020 300 EUR 6.9 1.899 297 296 – –

Bond 2013 –2019 186 USD 5.2 FRN 181 181 – –

Total 15,095 16,154 13,712 15,329

Adjustments from derivatives 0 0 0 0

Total amount bonds 15,454 16,526 14,096 15,742

æ

the decline in redemptions compared with the previous year is due to

the expiry of a loan of € 660 million in the previous year, which was

repaid in four equal installments at the beginning of each year from

2009 to 2012. for this loan, interest was charged on the installments

– contrary to the common situation.

the issued bonds consist of the following transactions:

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in the year under review, a matured listed bond of deutsche Bahn

finance B.V. (dB finance), amsterdam/the Netherlands was repaid

(€ 750 million).

dB finance has also issued eight new bonds plus two increases.

these are listed bonds of € 300 million, € 50 million, NoK 1,500 million

(€ 202 million), chf 475 million (€ 223 million plus increase € 163 million),

GBp 425 million (€ 346 million plus increase € 151 million), € 500 million,

€ 300 million and usd 250 million (€ 186 million).

Bank borrowings are detailed in the following table:

Bank borrowings [ € million ] Currency

Residual maturity

(years)

Nominal interest

rate (%)

Carrying amount

2013Fair value

2013

Carrying amount

2012Fair value

2012

Loan 2002–2016 EUR 2.7 FRN 200 200 200 200

Loan 2002–2022 EUR 8.7 FRN 200 200 200 200

Loan 2003 –2016 EUR 2.7 FRN 200 200 200 200

Loan 2003 –2022 EUR 8.7 FRN 200 200 200 200

Other 50 51 101 103

Total 850 851 901 903

æ

the decline in other bank borrowings is due to scheduled redemptions

mainly in the dB arriva and dB schenker logistics segment.

Bank borrowings were secured in an amount of € 0 million (as of

december 31, 2012: € 22 million). secured bank borrowings were due to

acquisitions in the previous year. liabilities are not secured in dB Group.

as of december 31, 2013, guaranteed credit facilities with a total

volume of € 3,646 million (as of december 31, 2012: € 3,495 million)

were available to dB Group. of this figure, € 2,080 million (as of

december 31, 2012: € 2,030 million) was attributable to back-up lines

for the € 2.0 billion commercial paper program of dB aG and dB

finance. None of these back-up lines had been drawn down as of

december 31, 2013. Global credit facilities totaling € 1,566 million (as

of december 31, 2012: € 1,465 million) are used for working capital and

surety for payment financing of subsidiaries with worldwide opera-

tions, primarily in the segments dB schenker logistics and dB arriva.

the liabilities due to euRofima are detailed in the following:

Liabilities due to EUROFIMA [ € million ] Currency

Residual maturity

(years)

Nominal interest

rate (%)

Carrying amount

2013Fair value

2013

Carrying amount

2012Fair value

2012

Loan 2000 –2014 EUR 0.8 5.970 219 228 219 240

Loan 2001–2014 EUR 0.7 5.410 300 311 300 325

Loan 2010 –2021 EUR 7.8 4.050 200 226 200 235

Total 719 765 719 800

æ

No new euRofima loans were raised in the year under review. the

liabilities due to euRofima are secured by way of transfer of ownership

of rail material (rolling stock) in view of the statutes of euRofima.

of the figure stated for finance leases liabilities, € 32 million (as of

december 31, 2012: € 378 million) related to a real estate leasing agree-

ment for a remaining concourse building of dB station & service aG

and a logistics center of schenker deutschland aG in echingen, and

€ 325 million (as of december 31, 2012: € 361 million) related to leasing

agreements for various rolling stock (multiple units, locomotives,

freight cars) and buses. these agreements have been concluded

mainly as sale-and-leaseback transactions for achieving advantageous

financing conditions with German lessors.

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[ € million ]Nominal

volume Currency

Residual maturity

(years)

Nominal interest

rate (%)

Carrying amount

2013Fair value

2013

Carrying amount

2012Fair value

2012

finanCe lea ses – mobile a sseTs

Locomotives /freight cars (1999) 182 NLG 0.0 5.69 – 5.83 0 0 15 15

Freight locomotives (2000) 101 DEM 2.0 5.35 56 61 60 68

Freight locomotives (2000) 154 EUR 3.0 5.40 101 112 108 124

Locomotives (2001) 178 EUR 1.5 –3.0 4.87 119 129 127 142

Diesel rail cars for regional transport (200) 55 EUR 5.0 8.34 49 61 51 69

325 363 361 418

finanCe lea ses – real esTaTe

Logistics center (1986 ) 24 DEM 2.0 8.50 3 3 5 5

Concourse buildings (1998) 497 DEM 8.0 4.00 – 5.95 29 35 373 385

32 38 378 390

Other 277 357 359 458

Total 634 758 1,098 1,266

æ

the above finance leases for locomotives and multiple units cannot be

terminated during a fixed basic lease term, and have a maximum

remaining term of five years. most of the contracts contain a clause

enabling the lessee to purchase the assets for the residual value or the

higher market value after the end of the lease, whereby the difference

between the residual value and the market value at the end of the

lease is shared between the lessor (25 %) and the lessee (75 %).

the decline in finance leases for mobile assets is due to scheduled

repayments and the termination of a finance lease for freight cars in

the Netherlands.

the significant decline in finance leases for real estate is due to

the lessee dB station & service aG exercising the right to buy back

various concourse buildings at the end of the first lease period as of

march 28, 2013 (about € 340 million).

the finance lease contract for the remaining concourse building

of dB station & service aG has a remaining term of eight years, and

cannot be terminated during the fixed lease. at the end of the lease,

the lessee is able to buy the assets for a fixed price. if this option is

not exercised, the lease is extended for a second period, at the end of

which the lessor has a put option for the real estate with regard to

dB station & service aG.

in addition, liabilities attributable to finance leases (see note (13) [ page

235 ff. ]) are secured by rights of the lessors in relation to the leased

assets. the leased assets have a carrying amount of € 515 million (as

of december 31, 2012: € 989 million).

the position “other” comprises numerous europe-wide leases for

buses and trains at dB arriva and the carrying amount of a power

procurement agreement of dB energie Gmbh worth € 100 million (as

of december 31, 2012: € 108 million) as well as the carrying amount of

an inverter agreement of dB energie Gmbh in the amount of € 46 mil-

lion (as of december 31, 2012: € 49 million). Both agreements are

classified as embedded financial leases as a result of the fact that the

power is procured primarily by dB energie Gmbh and also in view of

the underlying agreement duration in accordance with ifRic 4 in con-

junction with ias 17.

in the subsequent years, the following payments have to be made

in connection with finance leases:

[ € million ]

Residual maturity

TotalLess than

1 year1 to 2 years

2 to 3 years

3 to 4 years

4 to 5 years

More than 5 years

Total more than 1 year

deC 31 , 201 3

Minimum lease payments (nominal ) 95 193 179 36 77 335 820 915

Less future interest charges 36 33 24 17 17 154 245 281

Finance lease liabilities 59 160 155 19 60 181 575 634

deC 31 , 201 2

Minimum lease payments (nominal ) 494 106 197 182 36 415 936 1,430

Less future interest charges 45 37 33 24 17 176 287 332

Finance lease liabilities 449 69 164 158 19 239 649 1,098

æ

the following table provides information concerning the main finance

leases:

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(29) Other liabilities

[ € million ]

Residual maturity

TotalLess than

1 year1 to 2 years

2 to 3 years

3 to 4 years

4 to 5 years

More than 5 years

Total more than

1 year

deC 31 , 201 3

Trade liabilities including deposits received 4,379 28 30 30 34 62 184 4,563

Miscellaneous /other liabilities 3,019 20 11 11 9 36 87 3,106

Total 7,398 48 41 41 43 98 271 7,669

thereof non-financial liabilities 1,758 21 25 24 26 58 154 1,912

thereof deposits received 102 21 25 24 26 58 154 256

thereof due to related parties 296 0 0 0 0 0 0 296

deC 31 , 201 2

Trade liabilities including deposits received 4,406 47 32 32 33 119 263 4,669

Miscellaneous /other liabilities 2,986 13 16 10 8 36 83 3,069

Total 7,392 60 48 42 41 155 346 7,738

thereof non-financial liabilities 1) 1,648 27 24 25 27 109 212 1,860

thereof deposits received 104 27 24 25 27 109 212 316

thereof due to related parties 315 0 0 0 0 0 0 315

1) Allocation adjusted.

æ

the miscellaneous/other liabilities comprise the following:


2013Dec 31,

2012

per sonnel-relaTed liabiliTies

Unused holiday entitlements 330 306

Outstanding overtime 284 244

Social security 101 96

Severance payments 22 19

Christmas bonuses 4 7

Holiday pay 14 16

Other personnel obligations 622 587

oTher Ta xes

Value-added tax 61 62

Payroll and church taxes, solidarity surcharge 115 107

Miscellaneous other taxes 103 101

Interest payable 278 255

Sales discounts 121 107

Deferred construction grants 120 94

Liabilities due to Railway Crossings Act 4 8

Reconveyance obligations 3 2

Miscellaneous /other liabilities 924 1,058

Total 3,106 3,069

the other personnel obligations also include bonus obligations.

the other liabilities were secured in an amount of € 0 million in

the year under review (as of december 31, 2012: € 0 million).

(30) Income tax liabilities the income tax liabilities as of december 31, 2013 related mainly to

obligations to the fiscal authorities in Great Britain, Germany and

india.

(31) Additional disclosures relating to the financial instrumentscarrying amounts and fair values are based on valuation categories.

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261 Erläuterungen zur Kapitalflussrechnung262 Erläuterungen zur Segmentberichterstattung 264 Risikomanagement und derivative Finanzinstrumente

250 Deutsche Bahn Group 2013 AnnuAl REpoRt

Categories of financial assets and financial liabilities as of Dec 31 – assets

Valuation categories (according to IAS 39) [€ million]

Held for trading 2) Held to maturity Available for sale Loans and receivables

Not attributable toa category according

to IAS 39 4) Total Fair value

Fair value(recognized in the

income statement) At amortized cost 3) At cost 3)

Fair value(with no impact on the

income statement) At cost 3) At amortized cost 3)

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012

CaTegories of finanCial a sseTs and finanCial liabiliTies

A SSETS

non - CurrenT finanCial a sseTs

Shares in affiliated companies (at cost) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 n /a n /a

Subsidiaries (at cost) 0 0 0 0 9 15 0 0 0 0 0 0 0 0 9 15 n /a n /a

Securities (at cost) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 n /a n /a

Securities (at fair value) 0 0 0 0 0 0 2 2 0 0 0 0 0 0 2 2 2 2

available-for-sale financial assets 0 0 0 0 9 15 2 2 0 0 0 0 0 0 11 17 – –

Trade receivables 0 0 0 0 0 0 0 0 0 0 9 24 0 0 9 24 9 24

Receivables from financing 0 0 0 0 0 0 0 0 0 0 9 4 0 0 9 4 9 4

Receivables from finance leases 0 0 0 0 0 0 0 0 0 0 0 0 26 28 26 28 26 28

Advance payments and accrued income 0 0 0 0 0 0 0 0 0 0 0 0 32 25 32 25 n /a n /a

Plan assets according to IAS 19 1) 0 0 0 0 0 0 0 0 0 0 0 0 44 9 44 9 n /a n /a

Miscellaneous /other assets 0 0 0 0 0 0 0 0 0 0 17 25 1 2 18 27 18 27

receivables and other assets 0 0 0 0 0 0 0 0 0 0 35 53 103 64 138 117 – –

Currency-based derivatives – hedging 0 0 0 0 0 0 0 0 0 0 0 0 24 104 24 104 24 104

Commodity derivatives – hedging 0 0 0 0 0 0 0 0 0 0 0 0 49 73 49 73 49 73

Interest-based derivatives – non-hedging 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Currency-based derivatives – non-hedging 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1

derivative financial instruments 1 1 0 0 0 0 0 0 0 0 0 0 73 177 74 178 74 178

Total non-current financial assets 1 1 0 0 9 15 2 2 0 0 35 53 176 241 223 312 – –

CurrenT finanCial a sseTs





Trade receivables 0 0 0 0 0 0 0 0 0 0 4,113 4,202 0 0 4,113 4,202 4,113 4,202



Advance payments and accrued income 0 0 0 0 0 0 0 0 0 0 0 0 185 147 185 147 185 147

Held to maturity securities 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Receivables from other taxes 0 0 0 0 0 0 0 0 0 0 0 0 127 168 127 168 127 168

Plan assets according to IAS 19 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0


other receivables and assets 0 0 0 0 0 0 0 0 0 0 527 457 362 360 889 817 889 817





Commodity derivatives – non-hedging 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0


Cash and cash equivalents 0 0 0 0 0 0 0 0 0 0 2,861 2,175 0 0 2,861 2,175 2,861 2,175

Available-for-sale assets 0 0 0 0 0 0 0 0 0 0 0 0 5 0 5 0 5 0

Total current financial assets 3 2 0 0 0 0 5 4 0 0 7,501 6,834 376 381 7,885 7,221 – –

1) Previous year’s figure adjusted as a result of the effects of the first-time retrospective application of IAS 19 (revised June 2011).2) Including non-hedge derivatives. DB Group did not apply the fair value option according to IAS 39. Thus the sub-category

“held for trading” was used instead of the main category “fair value through profit and loss.”

æ

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251consoliDateD financial statements notES to thE conSolidAtEd FinAnciAl StAtEmEntS

Categories of financial assets and financial liabilities as of Dec 31 – assets


Held for trading 2) Held to maturity Available for sale Loans and receivables

Not attributable toa category according

to IAS 39 4) Total Fair value

Fair value(recognized in the

income statement) At amortized cost 3) At cost 3)

Fair value(with no impact on the

income statement) At cost 3) At amortized cost 3)

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012

CaTegories of finanCial a sseTs and finanCial liabiliTies

A SSETS

non - CurrenT finanCial a sseTs

Shares in affiliated companies (at cost) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 n /a n /a





Trade receivables 0 0 0 0 0 0 0 0 0 0 9 24 0 0 9 24 9 24



Advance payments and accrued income 0 0 0 0 0 0 0 0 0 0 0 0 32 25 32 25 n /a n /a

Plan assets according to IAS 19 1) 0 0 0 0 0 0 0 0 0 0 0 0 44 9 44 9 n /a n /a


receivables and other assets 0 0 0 0 0 0 0 0 0 0 35 53 103 64 138 117 – –






Total non-current financial assets 1 1 0 0 9 15 2 2 0 0 35 53 176 241 223 312 – –

CurrenT finanCial a sseTs





Trade receivables 0 0 0 0 0 0 0 0 0 0 4,113 4,202 0 0 4,113 4,202 4,113 4,202



Advance payments and accrued income 0 0 0 0 0 0 0 0 0 0 0 0 185 147 185 147 185 147

Held to maturity securities 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Receivables from other taxes 0 0 0 0 0 0 0 0 0 0 0 0 127 168 127 168 127 168

Plan assets according to IAS 19 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0


other receivables and assets 0 0 0 0 0 0 0 0 0 0 527 457 362 360 889 817 889 817





Commodity derivatives – non-hedging 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0


Cash and cash equivalents 0 0 0 0 0 0 0 0 0 0 2,861 2,175 0 0 2,861 2,175 2,861 2,175

Available-for-sale assets 0 0 0 0 0 0 0 0 0 0 0 0 5 0 5 0 5 0

Total current financial assets 3 2 0 0 0 0 5 4 0 0 7,501 6,834 376 381 7,885 7,221 – –

1) Previous year’s figure adjusted as a result of the effects of the first-time retrospective application of IAS 19 (revised June 2011).2) Including non-hedge derivatives. DB Group did not apply the fair value option according to IAS 39. Thus the sub-category

“held for trading” was used instead of the main category “fair value through profit and loss.”

æ

3) Acquisition costs. 4) For reconciling the categories of financial assets and financial liabilities to the figures stated in the balance sheet.

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Categories of financial assets and financial liabilities as of Dec 31 – equity and liabilities


Held for trading 1) Other liabilities

Notattributable to

a categoryaccording to

IAS 39 3) Total Fair value

Fair value (recognized

in the incomestatement) At cost 2)

At amortized cost 2)

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012

CaTegories of finanCial a sseTsand finanCial liabiliTies

EquIT y AND LIABILITIES

non - CurrenT finanCial liabiliTies

Interest-free loans 0 0 0 0 1,429 1,574 0 0 1,429 1,574 1,673 1,853

Bonds 0 0 0 0 15,051 13,347 0 0 15,051 13,347 16,123 14,993

Bank borrowings 0 0 0 0 811 821 0 0 811 821 811 821

EuROFIMA loans 0 0 0 0 200 719 0 0 200 719 226 235

Finance lease liabilities 0 0 0 0 0 0 575 649 575 649 699 817

financial debt 0 0 0 0 17,491 16,461 575 649 18,066 17,110 19,532 18,719

Trade liabilities including received deposits 0 0 0 0 30 48 154 215 184 263 30 48

Other liabilities 0 0 0 0 87 83 0 0 87 83 87 83

liabilities 0 0 0 0 117 131 154 215 271 346 117 131

Interest-based derivatives – hedging 0 0 0 0 0 0 27 34 27 34 27 34

Currency-based derivatives – hedging 0 0 0 0 0 0 248 197 248 197 248 197

Commodity derivatives – hedging 0 0 0 0 0 0 68 35 68 35 68 35

Currency-based derivatives – non-hedging 0 0 0 0 0 0 0 0 0 0 0 0

derivative financial instruments 0 0 0 0 0 0 343 266 343 266 343 266

Total non-current financial liabilities 0 0 0 0 17,608 16,592 1,072 1,130 18,680 17,722 19,992 19,116

CurrenT finanCial liabiliTies

Interest-free loans 0 0 0 0 215 215 0 0 215 215 215 215

Bonds 0 0 0 0 403 749 0 0 403 749 403 749

Bank borrowings 0 0 0 0 39 80 0 0 39 80 39 80

EuROFIMA loans 0 0 0 0 519 0 0 0 519 0 539 565

Finance lease liabilities 0 0 0 0 0 0 59 449 59 449 59 449

Other financial liabilities 0 0 0 0 12 10 0 0 12 10 12 10

financial debt 0 0 0 0 1,188 1,054 59 449 1,247 1,503 1,267 2,068

Trade liabilities including received deposits 0 0 0 0 4,277 4,302 102 104 4,379 4,406 4,379 4,406

Trade liabilities including received deposits 0 0 0 0 4,277 4,302 102 104 4,379 4,406 4,379 4,406

Liabilities from other taxes 0 0 0 0 0 0 279 269 279 269 279 269

Miscellaneous /other liabilities 0 0 0 0 1,362 1,442 1,378 1,275 2,740 2,717 2,740 2,717

other liabilities 0 0 0 0 1,362 1,442 1,657 1,544 3,019 2,986 3,019 2,986

Interest-based derivatives – hedging 0 0 0 0 0 0 0 0 0 0 0 0

Currency-based derivatives – hedging 0 0 0 0 0 0 67 29 67 29 67 29

Commodity derivatives – hedging 0 0 0 0 0 0 28 18 28 18 28 18

Currency-based derivatives – non-hedging 4 2 0 0 0 0 0 0 4 2 4 2

Commodity derivatives – non-hedging 0 0 0 0 0 0 0 0 0 0 0 0

derivative financial instruments 4 2 0 0 0 0 95 47 99 49 99 49

Available-for-sale liabilities 0 0 0 0 0 0 0 0 0 0 0 0

Total current financial liabilities 4 2 0 0 6,827 6,798 1,913 2,144 8,744 8,944 8,764 9,509

1) Including non-hedge derivatives. DB Group did not apply the fair value option according to IAS 39. Thus the sub-category “held for trading” was used instead of the main category “fair value through profit and loss.”

2) Acquisition costs. 3) For reconciling the categories of financial assets and financial liabilities to the figures stated in the balance sheet.

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the carrying amounts of the liquid assets, trade receivables and other

financial assets (€ 606 million) approximate the fair values as of the

balance sheet date.

the carrying amounts of the trade liabilities, the miscellaneous/other

liabilities (a total of € 5,757 million) as well as the short-term financial

debt approximate the fair values as of the balance sheet date.

the fair values of the non-current financial debt are allocated to

the following valuation categories:

[€ million]

Dec 31, 2013 Dec 31, 2012

Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total

finanCial debT – non - CurrenT

Interest-free loans – 1,673 – 1,673 – 1,853 – 1,853

Bonds 16,123 – – 16,123 14,993 – – 14,993

Commercial paper – – – – – – – –

Bank liabilities 811 – – 811 821 – – 821

EuROFIMA loans – 539 – 539 – 565 – 565

Finance lease liabilities – 699 – 699 – 817 – 817

Total 16,934 2,911 – 19,845 15,814 3,235 – 19,049

æ

the interest-free loans shown at fair value are established by dis-

counting the nominal values of the interest-free loans broken down

into maturity buckets using the dB Group’s interest curve (market

interest curve plus current dB spread; source: thomson Reuters or

Bloomberg) and a term until 2024.

market prices, multiplied by the exchange rates on the balance

sheet date, are used for bonds of dB Finance. Various sources are used

for these prices, including Reuters and Bloomberg. Variable bonds

with an equivalent value of less than € 100 million are measured at par

if no prices are available from Reuters or Bloomberg.

theoretical refinancing via bonds of dB Finance are assumed for

assessing the market value of outstanding EuRoFimA loans. A dis-

counted cash flow method is used for calculation purposes. the refer-

ence interest rate which is used is established by interpolation of the

yields for matching maturities of bonds of dB Finance.

the fair value of the finance leases is calculated by discounting the

outstanding leasing payments using the dB Group’s interest curve

(market interest curve plus current dB spread; source: thomson

Reuters or Bloomberg).

the financial instruments recognized at fair value are classified

under valuation level 2 and to a lesser extent under valuation level 1.

[€ million]

Dec 31, 2013 Dec 31, 2012

Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total

a sseTs

Available-for-sale financial assets (securities at fair value) 7 – – 7 6 – – 6

Derivatives – non-hedge – 4 – 4 – 3 – 3

Derivatives – hedging – 82 – 82 – 198 – 198

Total 7 86 – 93 6 201 – 207

liabiliTies

Derivatives – non-hedge – 4 – 4 – 2 – 2

Derivatives – hedging – 438 – 438 – 313 – 313

Total – 442 – 442 – 315 – 315

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the other available-for-sale financial assets shown in the balance sheet

(a total of € 9 million; as of december 31, 2012: € 15 million) comprise

other investments and securities which are recognized at cost, because

there is no corresponding price listed on an active market and because

the fair value cannot be reliably determined. At present, there is essen -

tially no intention to sell.

there have been no reclassifications between the valuation levels

in the year under review.

For establishing the fair values of the derivative financial instru-

ments, the contractually agreed or most probable cash flows are dis-

counted using the appropriate market interest rate, whereby due con-

sideration is given to the credit risk by means of credit spreads. no

credit risk mark-downs have been recognized in the case of secured

exposures. the credit risk resulting from the derivative portfolio is

treated on a net basis. credit support annexes, which are subject to

daily security settlement with a threshold value of € 0, were concluded

to minimize the credit risk of long-term interest and cross-currency

transactions.

no held-to-maturity securities are shown as of the balance sheet

date.

the net results according to valuation categories are detailed in

the following:

[€ million]Interest income

Interest expense

Other income

Other expenses

From exchange rate transaction

Total net resultat fair value

from currency translation

from impairments

deC 31 , 201 3

Held-for-trading assets and liabilities including non-hedge derivatives 0 0 0 0 – 1 0 0 – 1

Available for sale 0 0 5 –2 1 0 1 5

Loans and receivables 23 0 3 0 0 5 – 48 – 17

Other liabilities 0 – 684 0 – 6 0 0 0 – 690

Total 23 – 684 8 – 8 0 5 – 47 – 703

thereof recognized in the income statement 23 – 684 8 – 8 – 1 5 – 47 – 704

thereof directly offset in equity 0 0 0 0 1 0 0 1

deC 31 , 201 2

Held-for-trading assets and liabilities including non-hedge derivatives 0 0 0 0 3 0 0 3

Available for sale 1) 0 0 34 – 17 – 8 0 – 1 8

Loans and receivables 28 0 1 0 0 – 8 – 36 – 15

Other liabilities 0 –713 0 – 3 0 0 0 – 716

Total 28 – 713 35 – 20 – 5 – 8 – 37 – 720

thereof recognized in the income statement 28 –713 35 –20 3 – 8 – 37 – 712

thereof directly offset in equity 1) 0 0 0 0 – 8 0 0 – 8

1) Fair value figure adjusted.

æ

the net results mainly include net interest income of € – 661 million

(previous year: € – 685 million).

the interest attributable to financial instruments is shown in net

interest income (see note (9) [ page 233 ]); the other components of net

result are shown under other financial result.

the net result of financial liabilities in the category “other liabili-

ties” includes interest expenses attributable to the cumulative interest

relating to interest-free loans.

Foreign currency gains and losses attributable to the translation

of foreign currency liabilities are opposed by almost identical losses/

gains attributable to derivatives (see note (10) [ page 234 ]).

(32) Pension obligationsdB Group grants post-employment benefits to its employees in

numer ous countries. the form of the pension commitments depends

on the legal, economic and tax conditions applicable in the particular

country. A distinction is made between defined contribution plans and

defined benefit plans. major pension obligations exist only in Germany

and in Great Britain. For this reason, only these pension obligations

are described in greater detail in the following.

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Germany

pension obligations of dB Group in Germany comprise pension obliga-

tions for civil servants and also for employees.

After they retire, civil servants assigned to companies of dB Group

receive pensions from the Federal Railroad Fund under the civil Ser-

vants Benefits Act (Beamtenversorgungsgesetz).

only while the assigned civil servants are actively working for

dB Group are payments made to the Federal Railroad Fund as part of

a pro forma settlement in the same way as for newly recruited

employees (section 21 (1) dBGrG). this also includes theoretical

amounts for contributions to statutory pension insurance schemes as

well as theoretical costs in accordance with the collective bargaining

agreement regarding the additional company pension scheme for

employees of dB AG (ZVerstV). the payments made to the Federal

Railroad Fund for retirement pensions and supplementary benefits of

civil servants are defined contribution retirement schemes.

the pension obligations with regard to employees mainly relate

to the following:

a) Employees who were employed by deutsche Bundesbahn before

dB AG was established ( January 1, 1994) enjoy supplementary benefits

in view of their former membership of the public sector. the employees

are entitled to benefits from this additional pension insurance from

deutsche Rentenversicherung Knappschaft-Bahn-See (KBS). As an

official authority, KBS has not only assumed responsibility for man-

aging and paying the statutory pension for dB Group employees; it

also continues the additional pension insurance for the transferred

employees who are beneficiaries.

the Federal Railroad Fund bears the costs of these additional ben-

efits, less the contribution made by the employees themselves (section

14 (2) dBGrG). Accordingly, dB AG does not set aside any provisions

for these public sector benefits.

b) Employees of the former deutsche Reichsbahn and the employ-

ees who have been recruited after January 1, 1994 receive an additional

company pension from dB AG within the framework of the ZVerstV.

this supplementary company pension is a defined benefit scheme,

which is linked to salary and length of service. the current pension

benefits are adjusted every year in line with the regulations of the

company pensions Act (Betriebsrentengesetz). Retirement benefits,

invalidity benefits and benefits to surviving dependants are provided

in the form of a lifetime pension. no plan assets are created for this

scheme.

c) Various defined benefit pension obligations exist with regard to

senior executives in dB Group who were granted a senior executive

commitment before January 1, 2007. the extent of the benefits depend

on the length of service and the salary of the beneficiary. in general,

retirement benefits, invalidity benefits and benefits to surviving

dependants are provided in the form of a lifetime pension.

in some exceptional cases, pledged reinsurance policies have been

taken out to eliminate biometric risks; these are recognized as plan

assets. With this exception, no plan assets are created.

d) Senior executives of dB Group who were granted a senior exec-

utive commitment after december 31, 2006, are provided with a retire-

ment benefit scheme in the form of a defined contribution commit-

ment. For this purpose, a benefit module is calculated in each year of

service, depending on the salary and age of the beneficiary. these

benefits are financed by way of a contractual trust arrangement (ctA),

namely deutsche Bahn pensions trust e.V. the extent of the benefits

depends on the yield of the ctA, whereby a minimum return is guar-

anteed. to avoid longevity risks, the benefits are granted in the form

of a five-year installment. the assets of the ctA are classified as plan

assets. the pension obligation is covered by the plan assets on the

assumption that the ctA produces a corresponding performance, thus

minimizing investment risks. there are no legal or regulatory obliga-

tions requiring deutsche Bahn pensions trust e.V. to make minimum

payments into the scheme. the contributions are invested in line with

the fundamental assumption that the benefit commitment is guaran-

teed by a corresponding guarantee element. For each payment relating

to the individual beneficiary, an age-related amount is invested in

prime zero bonds. the investment amount remaining after the pay-

ment has been made into the guarantee element is mainly invested in

passively managed European equity and bond funds (or equivalent

products) with the aim of optimizing returns.

Whilst maintaining the existing rights from an original pension

scheme (lifetime pension), some senior executives with an older

senior executive commitment have been transferred to this defined

contribution scheme financed via deutsche Bahn pensions trust e.V.

e) Senior executives are able to participate in a deferred-compen-

sation program. this employee-financed form of company pension

scheme constitutes a defined benefit obligation.

f) in addition, there are also employee financed direct insurance

policies, mainly with dEVK deutsche Eisenbahn Versicherung lebens-

versicherungsverein a.G., as well as an employee financed pension

fund at dEVK pensionsfonds-AG which is the subject of a collective

bargaining agreement. due to the existence of a guarantee in the form

of insurance, these two external forms of company pension scheme

are not relevant for provisions.

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Great Britain

a) the company pension scheme of dB Schenker Rail uK is essentially

a defined benefit pension scheme (linked to salary and length of ser-

vice) within the British “Railway pension Scheme.” the costs of the

pension schemes are shared between the employer and the employee

in the ratio 60:40 and accordingly recognized in the balance sheet. the

plan assets are managed by an independent trustee. the process of

collating the data of members in the plan for the purpose of compliance

with legal requirements in relation to the members of the plan is gen-

erally carried out every three years, most recently as of december 31,

2013. As of the intermediate valuation dates, the obligations in the

plan are measured on the basis of the correspondingly updated data.

the pension scheme is based on final salary, and lifetime pensions are

provided as benefits. the pension obligations are essentially covered

by plan assets. capital is invested by the trustee of the plan assets

following liaison with dB Group.

b) Within dB Arriva, there are mainly defined benefit retirement

benefit commitments. By far the most important defined benefit plans

(related to salary and length of service) relates to employees of dB Arriva

within the “Railway pension Scheme” in Great Britain. these are sections

other than the dB Schenker Rail uK scheme within the railway pension

scheme. the costs of the pension schemes are also shared between

the employer and the employee in the ratio 60:40 and accordingly

recognized in the balance sheet. the pension schemes are based on

final salary, and lifetime pensions are provided as benefits. the corre-

sponding pension obligations are to a large extent covered by fund

assets. capital is invested by the trustee of the plan assets following

liaison with dB Group.

Some companies pay contributions within the framework of a fran-

chise agreement to the British “Railway pension Scheme” for employees

seconded for the duration of the agreement (franchise period). the

obligations to these employees as well as the plan assets are com-

pletely disclosed after deduction of the element financed by the

employees (40 %). the process of recognizing the effect of franchise

agreements recognizes that part of the shortfall or surplus cover will

probably not be financed by dB Group.

in addition, individual companies of dB Arriva also issued defined

contribution retirement benefit commitments to their employees.

under such arrangements, the employer does not enter into any obli-

gations apart from paying contributions to an external benefit scheme.

the extent of the future pension benefits depends exclusively on the

amount of contributions paid to the external benefit scheme, including

the income generated by investing these contributions.

in addition, some contributions have also been paid to social pension

funds within the context of statutory regulations (government

schemes).

in the case of the defined benefit pension obligations in Germany

and abroad, the actuarial risks are borne by dB Group. there are the

following actuarial risks which are considered to be typical for compa-

nies with defined benefit schemes.

A interest risk: A change in the discount rate results in a change in the

present value of the total obligation (dBo).

A inflation risk: part of the pension obligations, particularly as a result

of adjustments to current pensions, is linked to the development

of inflation.

A longevity risk: A longevity risk may occur in the form of extended

periods in which pensions are paid out as a result of an increase in

life expectancy in future

A investment risk: the capital investment is exposed to numerous

risks, which may have an impact on the present value recognized

for the plan assets. in the case of pension schemes with an obliga-

tion to pay into the scheme, the amount of future contributions

may be affected by the investment risk.

the figures stated for pension provisions in the balance sheet are

detailed in the following:

[€ million] Germany

Europe (excluding Germany)

Rest of world Total 1 )

deC 31 , 201 3

Funded obligations 222 3,670 49 3,941

unfunded obligations 2,477 248 5 2,730

Total obligations 2,699 3,918 54 6,671

Fair value of plan assets – 129 –2,947 – 33 – 3,109

Effects due to cost sharing 0 –237 0 – 237

Effects due to franchise contracts 0 –205 0 – 205

Assets recognized in the balance sheet as pension assets 0 44 0 44

net liability recognized in the balance sheet 2,570 573 21 3,164

deC 31 , 201 2

Funded obligations 202 3,430 53 3,685

unfunded obligations 2,379 225 6 2,610

Total obligations 2,581 3,655 59 6,295

Fair value of plan assets – 116 –2,744 – 31 – 2,891

Effects due to cost sharing 0 – 193 0 – 193

Effects due to franchise contracts 0 – 145 0 – 145

Assets recognized in the balance sheet as pension assets 0 8 0 8

net liability recognized in the balance sheet 2,465 581 28 3,074

1) Previous yearʼs figures adjusted as a result of the effects of the first-time retrospective application of IAS 19 (revised June 2011).

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[€ million]

Germany Europe

(excluding Germany) Rest of world Total 1 )

2013 2012 2013 2012 2013 2012 2013 2012

Obligation as of Jan 1 2,581 1,971 3,655 3,065 59 48 6,295 5,084

Service cost, excluding employee contributions 86 63 65 52 2 3 153 118

Employeesʼ contributions 3 3 40 39 0 0 43 42

Interest expense 76 83 105 114 2 2 183 199

Payments – 64 – 64 – 135 – 131 –2 – 3 – 201 – 198

thereof pensions – 64 – 64 – 120 – 131 –2 – 3 – 186 – 198

thereof payments for settlements 0 0 – 15 0 0 0 – 15 0

Past service costs and profit or losses from settlements 0 2 –2 – 16 0 – 1 – 2 – 15

Transfers 0 0 –2 – 1 0 0 – 2 – 1


thereof additions 0 2 0 2 0 0 0 4

thereof disposals 0 0 0 0 0 0 0 0

Actuarial gains (–) or losses 17 521 263 463 0 11 280 995

Revaluations based on experience 16 0 10 27 0 0 26 27

Due to change in demographic assumptions 1 1 3 – 12 0 0 4 – 11

Due to change in financial assumptions 0 520 250 448 0 11 250 979

Currency effects 0 0 –71 68 –7 – 1 – 78 67

Obligation as of Dec 31 2,699 2,581 3,918 3,655 54 59 6,671 6,295


æ

the total pension commitment has developed as follows:

the development of the plan assets is detailed in the following:

[€ million]

Germany Europe

(excluding Germany)

Rest of world Total

2013 2012 2013 2012 2013 2012 2013 2012

Fair value of plan assets as of Jan 1 116 107 2,744 2,462 31 28 2,891 2,597

Employerʼs contributions 12 10 69 76 2 4 83 90

Employeesʼ contributions 0 0 40 39 1 1 41 40

Theoretical return from plan assets 3 9 87 91 1 0 91 100

Payments – 5 – 5 – 124 – 121 –2 – 3 – 131 – 129

thereof pensions – 5 – 5 – 109 – 121 –2 – 3 – 116 – 129

thereof payments for settlements 0 0 – 15 0 0 0 – 15 0

Transfers 0 1 3 3 0 0 3 4



Revaluation 3 – 6 187 145 4 1 194 140

Administrative costs: costs of pension assurance 0 0 – 6 –7 0 0 – 6 – 7

Currency effects 0 0 – 53 54 – 4 0 – 57 54

Fair value of plan assets as of Dec 31 129 116 2,947 2,744 33 31 3,109 2,891

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the reported plan assets are broken down as follows:

As of Dec 31 [€ million]

Germany Europe

(excluding Germany) Rest of world Total

2013 2012 2013 2012 2013 2012 2013 2012

Stocks and other securities 4 4 1,581 1,663 21 20 1,606 1,687

thereof with market price listing 4 4 798 786 21 20 823 810

thereof without market price listing 0 0 783 877 0 0 783 877

Interest-bearing securities 31 23 809 509 10 9 850 541



Real estate and other self-used assets 0 0 2 4 0 0 2 4



Reinsurance 89 88 64 64 0 1 153 153



Private equity 0 0 196 194 0 0 196 194



Investments in infrastructure 0 0 76 71 0 0 76 71



Commodities 0 0 33 51 0 0 33 51



Cash and other assets 4 4 187 184 2 2 193 190



128 119 2,948 2,740 33 32 3,109 2,891 thereof assets classified as pension assets 0 – 8 – 44 0 0 0 – 44 – 8

128 111 2,904 2,740 33 32 3,065 2,883

changes in the net pension provisions are detailed in the following:

As of Dec 31 [€ million]

Germany Europe

(excluding Germany) Rest of world Total 1 )

2013 2012 2013 2012 2013 2012 2013 2012

Provisions as of Jan 1 2,465 1,864 581 386 28 20 3,074 2,270

Pension expenses 162 142 87 66 2 3 251 211

thereof service cost 89 66 65 52 1 2 155 120

thereof interest income and interest expenses 73 74 18 23 1 2 92 99

thereof administrative expenses 0 0 6 7 0 0 6 7

thereof past service costs and profits or losses from settlements 0 2 –2 – 16 0 – 1 – 2 – 15

Employerʼs contributions – 12 – 10 – 69 –76 –2 – 4 – 83 – 90

Payments – 59 – 59 – 11 – 10 0 0 – 70 – 69

thereof pensions – 59 – 59 – 11 – 10 0 0 – 70 – 69

thereof payments for settlements 0 0 0 0 0 0 0 0

Transfers 0 – 1 – 5 – 4 0 0 – 5 – 5



thereof disposals 0 0 0 0 0 0 0 0

Revaluation 14 527 – 33 209 – 4 10 – 23 746

revaluations based on experience 16 – 1 3 14 0 0 19 13

due to change in demographic assumptions 0 1 4 – 6 0 0 4 – 5

due to change in financial assumptions 0 525 105 309 0 11 105 845

Difference between actual income and theoretical income from plan assets –2 2 – 145 – 108 – 4 – 1 – 151 – 107

Currency effects 0 0 – 12 10 – 3 – 1 – 15 9

Change in recognized assets 0 0 35 0 0 0 35 0

Provisions as of Dec 31 2,570 2,465 573 581 21 28 3,164 3,074


æ

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in the year under review, there have been revaluations of € 109 million

(previous year: € 109 million) in relation to the effect of cost splitting

and the effect of franchise agreements. the interest expense and

expected income from the plan assets are recorded under interest

income.

All other items are recognized under personnel expenses.

the actuarial parameters used for assessing the value of most of

the pension provision are set out in the following:

[%] 2013 2012

disCounT r aTe

Germany and abroad (excluding Great Britain) 3.00 3.00

DB Schenker Rail (Great Britain) 4.30 4.40

DB Arriva (Great Britain) 4.30 4.40

expeCTed r aTe of salary inCrea ses




expeCTed r aTe of pension inCrea se (dependenT on sTaff group)




expeCTed aver age sTaff Turnover

Expected average staff turnover 2.67 2.67

the 2005 G mortality tables of professor dr. Klaus heubeck have been

used for valuing the pension obligations for the German Group com-

panies. country-specific mortality tables have been used for valuing

the pension obligations of the other Group companies.

Sensitivities and additional information:

[€ million]Dec 31,

2013Dec 31,

2012

Total obligation for an interest rate increased by 1 percentage point 5,522 –

Total obligation for an interest rate reduced by 1 percentage point 8,163 –

Total obligation with salary growth increased by 0.5 % 6,787 –

Total obligation for pensions increased by 0.5 % 7,173 –

Total obligation for life expectancy increased by 1 year 6,877 –

Total obligations 6,671 6,295

thereof active beneficiaries 3,718 3,403

thereof vested rights 961 882

thereof pensioners 1,992 2,010

Expected payments into plan assets for next year 87 88

Direct pension payments for next year 79 76

Duration of benefit obligation (years) 18.2 18.6

æ

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(33) Other provisions

[€ million]

Personnel-related

provisions Sales discountsProvisions for

pending losses

Decommis-sioning

provisions

Environmental protection provisions Other provisions Total

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012

As of Jan 1 1,202 1,148 552 549 415 433 496 465 1,179 1,438 1,318 1,577 5,162 5,610

Currency translation differences – 3 0 0 0 – 3 1 0 0 0 0 – 8 2 – 14 3

Changes in scope of consolidation 2 0 0 0 5 0 0 0 0 0 0 1 7 1

thereof additions 2 0 0 0 5 0 0 0 0 0 0 1 7 1

thereof disposals 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Amounts used –249 –248 – 175 – 143 – 170 – 177 –25 –23 – 67 – 63 –270 – 390 – 956 – 1,044

unused amounts reversed –256 – 180 – 55 – 112 –21 – 61 0 – 8 0 –201 – 168 – 326 – 500 – 888

Reclassifications –2 – 5 0 – 5 1 0 0 0 – 5 0 – 13 43 – 19 33

Additions 387 429 264 263 145 205 26 39 3 1 332 388 1,157 1,325

Compounding and discounting 9 58 0 0 5 14 25 23 6 4 1 23 46 122

As of Dec 31 1,090 1,202 586 552 377 415 522 496 1,116 1,179 1,192 1,318 4,883 5,162

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the following table breaks down the other provisions into current and

non-current amounts, and also details their estimated residual

maturity:

provisions for environmental protection

of the figure stated for environmental protection provisions, € 1,100 mil -

lion (as of december 31, 2012: € 1,159 million) relate to remedial action

obligations of dB AG. in order to take account of the remedial action

obligations recognized in the environmental protection provisions,

dB AG has set up

A the 4-phase program for soil remediation,

A the 3-phase sewerage program, and

A the 2-phase program for landfill closures

in order to ensure that remedial action is investigated and carried out

in a systematic manner in line with relevant legal regulations and in

conjunction with optimized costs.

in the 4-stage soil decontamination program, the contamination

in the soil and/or groundwater is localized using the following stages:

historical investigation, rough examination and detailed analysis. the

program involves a feasibility study, implementation and approval

planning as well as remedial action, and due consideration is given to

technical and legal requirements for the remedial action which aims

to ensure appropriate utilization.

the 3-stage sewerage network program aims to remedy any con-

tamination of soil and/or groundwater resulting from leaks. the pro-

gram also involves a plan to optimize the existing sewerage network

to ensure that it is capable of meeting future requirements and to ensure

that the need to take remedial action can be limited to this future

network. the network which is not utilized will be decommissioned.

the 2-stage landfill shut-down program will guarantee that landfill sites

on rail property are identified and measured in a standard manner, and

that these landfill sites will be decommissioned in accordance with the

landfill Regulation (deponieverordnung; depV)/technical instructions

for Residential Area Waste (technische Anleitung Siedlungsabfall;

tASi) and the German Federal Soil protection Act (Bundesbodenschutz -

gesetz; BBodSchG).

personnel-relateD provisions


2013Dec 31,

2012

Obligations under employment contracts 549 730

Early retirement and semi-retirement obligations 288 215

Service anniversary provisions 103 109

Other 150 148

Total 1,090 1,202

the personnel-related provisions include obligations which result from

the entitlement of many employees under labor law and the willing-

ness of dB AG not to terminate employment contracts for operational

reasons. in such cases, dB Group will incur losses in the form of per-

sonnel expenses which will have to be borne until the employment

contract is terminated or the employee is placed with another company;

no reciprocal benefit will be provided in return for these costs. dB AG

has set up a separate subsidiary, namely dB JobService Gmbh, in order

to absorb employees who have been made redundant. the decline in

the provisions is mainly attributable to a lower number of employees

æ

[€ million]

Residual maturity

TotalLess than

1 year1 to 2 years

2 to 3 years

3 to 4 years

4 to 5 years

More than 5 years

Total more than

1 year

deC 31 , 201 3

Personnel-related provisions 340 109 61 42 106 432 750 1,090

Sales discounts 586 0 0 0 0 0 0 586

Provisions for pending losses 133 93 60 34 22 35 244 377

Decommissioning provisions 29 27 31 31 31 373 493 522

Environmental protection provisions 75 70 72 69 68 762 1,041 1,116

Other provisions 892 86 31 25 21 137 300 1,192

Total 2,055 385 255 201 248 1,739 2,828 4,883

deC 31 , 201 2

Personnel-related provisions 335 164 94 41 112 456 867 1,202

Sales discounts 552 0 0 0 0 0 0 552

Provisions for pending losses 128 93 80 69 33 12 287 415

Decommissioning provisions 32 32 32 32 32 336 464 496

Environmental protection provisions 83 70 73 69 68 816 1,096 1,179

Other provisions 983 113 42 29 25 126 335 1,318

Total 2,113 472 321 240 270 1,746 3,049 5,162

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and a reduction in the periods spent by the employees in this separate

subsidiary until they are placed with other companies or until they

leave the company.

the provisions set aside to cover semi-retirement and early retire-

ment obligations cover the obligations arising from collective bar-

gaining agreements, and have mainly been calculated on the basis of

actuarial reports. As a result of the demographic Wage Agreement

(demografietarifvertrag) which came into force on April 1, 2013, this

includes for the first time an amount of € 126 million for the entitle-

ment of employees with many years of service and also many years of

shift working to enjoy special semi-retirement benefits.

DecommissioninG provisions

the decommissioning provisions refer to the pro rata decommissioning

obligation in relation to a joint power generation plant. the valuation

of the provision is based on an unchanged discount rate of 5.0 %.

other provisions

the other provisions comprise provisions for litigation risks, claims for

damages as well as decommissioning and demolition obligations, real

estate risks, third-party obligations for maintenance, guarantee and

warranty obligations, liability pensions, project risks and other tax

risks as well as numerous other issues which individually are of minor

significance.

(34) Deferred items


2013Dec 31,

2012

Deferred Federal grants 1,282 1,408

Deferred revenues 508 498

Deferred profits from sale-and-lease-back transactions 0 31

Other 351 280

Total 2,141 2,217

Non-current share 1,389 1,510

Current share 752 707

the deferred Federal grants comprise mainly the interest benefit (dif-

ference between the nominal value and present value) attributable to

the interest-free loans; this has developed as follows during the year

under review:

[€ million] 2013 2012

As of Jan 1 1,219 1,363

Addition 0 0

Reclassifications 0 0

Reversals – 144 – 144

As of Dec 31 1,075 1,219

of the figure shown for the reversal in the year under review, € 59 million

(previous year: € 59 million) is attributable to the annual reversal of

deferred items. the remainder is attributable to the release of amortized

deferrals relating to premature one-off repayments of interest-free

loans at the present value in the years 1999, 2004 and 2011.

deferred revenues constitute that part of compensation which is

attributable to the period after the balance sheet date.

Notes to the statemeNt of cash flows

the statement of cash flows shows the changes in cash and cash equiv-

alents in the year under review, and was prepared in accordance with

iAS 7 (cash Flow Statements). the cash flows are broken down into

operating activities, investing activities and financing activities. the

indirect method has been used for showing cash flow from operating

activities.

interest income and interest payments, dividend income as well

as tax payments are stated under operating activities.

cash and cash equivalents include the cash and cash equivalents

stated in the balance sheet with a residual maturity of less than three

months (cash in hand, cash deposited with the Bundesbank, cash at

banks and checks as well as securities).

the cash and cash equivalents also include current receivables due

from banks (roughly € 292 million) resulting from hedges in connec-

tion with financial futures. these receivables are repaid in the event

of a positive market development, and are repaid by no later than the

maturity of the financial futures.

Cash flow from operating activitiesthe cash flow from operating activities is calculated by adjusting the

net profit for the period before taxes by items which are not cash-

effective (in particular additions to and reversals of other provisions)

and by adding other changes in non-current assets and liabilities. the

cash flow from operating activities is then established after due con-

sideration is given to interest and tax payments.

the decline in cash flow from operating activities is due to a reduc-

tion of € 649 million in profit before taxes on income, lower interest

expenses and a reduction in depreciation recognized in relation to

intangible assets and property, plant and equipment as well as higher

non-cash-effective costs and income and also a decline in trade

accounts receivable.

the decline in non-cash-effective income compared with the pre-

vious year is mainly attributable to lower income from the reversal of

other provisions; the non-cash-effective expenses declined slightly as

a result of lower additions to the other provisions.

Cash flow from investing activitiesthe cash flow from investing activities is calculated as the inflow of

funds attributable to the disposal of property, plant and equipment

and intangible assets as well as investment grants, and the outflow of

funds for capital expenditures in property, plant and equipment and

intangible assets as well as non-current financial assets.

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inflows of funds attributable to investment grants are shown under

investing activities, because there is a close relationship between

investment grants which are received and the outflows of funds for

capital expenditures in property, plant and equipment.

the strong increase in the outflow of cash from investing activities

is mainly due to the 8 % increase in outflows for capital expenditures

in property, plant and equipment despite a simultaneous increase in

the net inflow of investment grants. outflows for the acquisition of

shares in consolidated companies (in the year under review: € 142 mil-

lion, mainly for the acquisition of Veolia Eastern Europe; previous year:

€ 14 million, mainly for the acquisition of Suomen Kiitoautot) increased

significantly. the decline inflows from the disposal of investments

accounted for using the equity method (in the previous year mainly

from the sale of mEtRAnS) has also resulted in a reduction in the

inflow of cash.

When changes take place in the scope of consolidation as a result

of the acquisition or sale of companies, the acquisition price which is

paid (excluding any liabilities which are transferred) less the acquired

or sold financial resources are stated as cash flow from investing activ-

ities. the other effects of the acquisition or sale on the balance sheet

are eliminated in the corresponding items of the three categories.

Cash flow from financing activitiesthe cash flow from financing activities is due to the net inflows and

outflows attributable to issued bonds, bank loans and other loans

which have been raised as well as outflows for the redemption of

interest-free loans.

Based on the unchanged profit distribution to the Federal Republic

of Germany, the net inflow of cash (previous year outflow of cash)

from financing activities resulted from higher net inflows from the

issue and redemption of bonds, a reduction in the repayment of

interest-free loans as well as the non-recurrence of outflows from the

repayment of EuRoFimA loans (€ 434 million) in the previous year.

Notes to the segmeNt iNformatioN

Segment reporting of dB Group has been prepared in accordance with

iFRS 8 (operating Segments). the operating segments of dB Group

result from the aggregation of fully consolidated legal entities; these

legal entities have been allocated to specific segments on the basis of

the company-specific operational performance on a defined market.

the management Board takes its decisions and carries out economic

analyses as well as appraisals at the level of the operating segments

(“management approach”).

the allocation of legal entities to operating segments in external

accounting is consistent with the allocation in internal management

reporting. this means that the management and legal structure of

dB Group are coincident. As a result of this allocation principle, there

are no partial balance sheets or partial income statements within a

legal entity which are allocated to different segments.

in this connection, management reporting is addressed to the manage-

ment Board in its function as the primary decision maker. management

reporting in dB Group is based on the accounting principles in accor-

dance with iFRS. With regard to reconciling the segment data with the

corresponding corporate data, it is accordingly mainly necessary to

take account of consolidation effects. For this reason, a consolidation

column is used for reconciliation purposes. the operations of the oper-

ating segments are covered in the reporting format in line with the

corporate organization structure of dB Group. the main regions cov-

ered by dB Group are detailed in the segment information by regions.

dB Group uses the following segments:

A dB Bahn long-distance: this segment comprises all cross-regional

transport operations and other passenger transport services in rail

passenger transport. most of these transport services are provided

in Germany.

A dB Bahn Regional: the activities for the German transport and

additional services in regional rail and road passenger transport are

combined in the dB Bahn Regional segment. these activities also

comprise the S-Bahn (metro) operations in Berlin and hamburg.

A dB Arriva: All European local transport activities (rail and bus)

outside Germany are pooled in the dB Arriva segment.

A dB Schenker Rail: this segment pools the European activities in

rail freight transport. it operates primarily in Germany, denmark,

the netherlands, italy, Great Britain, France, poland and Spain.

A dB Schenker logistics: All global logistics activities of dB Group

are managed in the dB Schenker logistics segment. these com-

prise the freight forwarding, transport and other services in com-

modity and goods transport.

A dB netze track: this segment is responsible for installing, main-

taining and operating the complete track-related rail infrastruc-

ture in Germany.

A dB netze Stations: this segment comprises the operation, devel-

opment and marketing of passenger stations and retail facilities

in stations in Germany.

A dB Services: dB Services segment provides all types of services,

mainly in the fields of transport, logistics, information technology

and telecommunications. the companies in this segment mainly

render their services within the Group.

A Subsidiaries/other: dB AG and dB ml AG with their numerous man-

agement, financing and service functions in their capacity as the

management holding of dB Group are shown in this segment. in

addition, this segment also comprises dB Energie Gmbh, dB pro-

jektBau Gmbh and the other subsidiaries and remaining activities.

the data concerning the segments are shown after intra-seg-

ment relations have been eliminated. the transactions between the

segments (inter-segment relations) are eliminated in the column

“consol idation.”

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the income and expenses detailed on the basis of operating segments

in the segment information are adjusted by issues which are of an

exceptional nature in terms of the amount involved or in terms of the

reason for the specific issue. A general adjustment is recognized for

book profits and losses attributable to transactions with investments/

financial investments and in the amount of the depreciation on long-

term customer contracts, which have been capitalized as part of the

purchase price allocation process or company acquisitions. in addition,

an adjustment is recognized for individual issues if they are of an

exceptional nature, if they are definable for accounting purposes, if

they can be measured and if the amount involved is material. they are

shown in the reconciliation column.

Since January 1, 2013, income generated by certain types of services

has been shown under revenues, whereas previously it had been shown

under other operating income. this change has been implemented in

view of the fact that these types of services are now attributable to

the core business as a result of changed market conditions and also as

a result of the expansion of the business activities of dB Group. one

effect is reflected particularly in the dB Services segment. in the seg-

ment report, the previous year figures have been adjusted accordingly

with regard to the presentation of income. Because the change in

consolidated income is not major, the previous year figures for the

revenues and other operating income in the consolidated income

state ment have not been adjusted. in the column “Reconciliation” in the

segment report, these adjustment amounts are shown for the previous

year period.

Segment reporting is based on the management parameters which

are used for internal management of the operating segments. these

parameters form the basis of the value-oriented management concept

(see “Capital management in DB Group (according to IAS 1)” [page 226 f.]).

the external revenues and other income consist exclusively of in -

come generated by the segments with non-Group parties. the internal

revenues and other income show the income with other segments

(inter-segment income). market prices are used for establishing the

transfer prices for internal transactions.

EBitdA (earnings before interest, taxes, depreciation and amorti-

zation) is used for assessing the purely operational profitability of the

operating segments. it does not include any costs of capital em ployed

in the form of depreciation and interest. Accordingly, EBitdA is not

influenced by segment-specific financing structures and long-term

investment cycles (in particular in the infrastructure segments); con-

sequently, depreciation is incurred sooner than the positive returns

generated by these capital expenditures. EBitdA thus has the char-

acter of pre-tax cash flow.

on the other hand, EBit additionally comprises depreciation rec-

ognized in relation to fixed assets (property, plant and equipment and

intangible assets). EBit is the result generated by operations which

is available for meeting the return requirements of the providers of

capital.

the financing costs which are incurred as a result of the (in certain

cases) very high amounts of capital tied up in the operating segments

of dB Group (particularly in the infrastructure segments) are also

relevant for a long-term assessment of results. this is the reason why

net operating interest income is additionally taken into consideration

in the parameter operating income after interest.

the capital employed also has to be taken into consideration in

addition to the above-mentioned parameters for internal management

of the operating segments. the capital employed comprises the essen-

tial capital which is used by providers of equity and providers of debt

and for which interest has to be paid.

net financial debt is defined as the balance of interest-bearing

external liabilities and finance lease liabilities as well as liquid assets

and interest-bearing external receivables. the net financial debt of the

segments also comprises the receivables and liabilities attributable to

Group financing and internal finance lease arrangements.

the gross capital expenditures consist of all capital expenditures

in property, plant and equipment and intangible assets. net capital

expenditures are calculated by deducting the participation of third

parties in the financing of specific investment projects (essentially the

construction grants of the Federal Republic of Germany and the Fed-

eral states).

Additions from changes in the scope of consolidation are shown

as part of segment gross capital expenditures, and comprise exclu-

sively the capital expenditures in property, plant and equipment and

intangible assets, including the goodwill acquired as part of company

acquisitions or included in the consolidated financial statements for

the first time.

the number of employees comprises the workforce, excluding train-

ees, at the end of the reporting period (part-time employees have

been converted to full-time equivalents).

the segments are subject to the same accounting principles which

are described in the section “Principles and methods” [ page 208 ff.] and

which are applicable for the remainder of the consolidated financial

statements. internal segment transactions within the Group are gener-

ally conducted on an arm’s length basis.

Explanations concerning the information by regionsExternal revenues are stated on the basis of the registered offices of

the Group company providing the service.

non-current assets are allocated on the basis of the location of the

company. the non-current assets comprise intangible assets, prop-

erty, plant and equipment as well as non-current receivables and other

assets (excluding financial instruments, deferred tax assets, rights

from insurance policies as well as assets in conjunction with benefits

after termination of the employment agreement).

Information concerning major clients in the year under review and the previous year, no single customer

accounted for more than 10 % of overall revenues of dB Group.

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risk maNagemeNt aNd derivative fiNaNcial iNstrumeNts

Management of financial and energy price risksAs a mobility, transport and logistics group with international opera-

tions, dB Group is exposed to financial risks in the form of changes

in interest rates and exchange rates. in addition, there are also energy

price risks on the procurement side as a result of fluctuations in the

prices of diesel fuel and electricity. one of the aspects of corporate

policy is to actively manage and thus limit these risks by means of the

use of derivative financial instruments.

dB AG with its central Group treasury is responsible for all financing

and hedging transactions of dB Group. it cooperates with the subsid-

iaries to identify, evaluate and control financial and energy price risks.

At regular intervals, the management Board is informed of major finan -

cial risks and receives a schedule of all financial instruments as well as

information on the impact on results and the balance sheet. Specula-

tion is not permitted. ongoing market and risk assessment takes place

as part of risk management.

the management Board of dB AG has defined principles for risk

management. the guidelines for Group financing and for the internal

control system contain binding rules for the use of derivative financial

instruments for managing interest rate and foreign exchange risks and

the risks of energy price changes, as well as the procedure for dealing

with related counterparty default risks. in the structure and procedure

organization, there is a clear functional and organizational segregation

between scheduling and trading on the one hand (front office) as well

as settlement and monitoring on the other (back office). Group trea-

sury operates on the global financial markets using the minimum

requirements applicable for risk management (mindestanforderungen

an das Risikomanagement; maRisk) of the banks prepared by the Fed-

eral Financial Supervisory Authority (Bundesanstalt für Finanzdienst-

leistungsaufsicht; BaFin), and is subject to regular internal and external

control.

derivative financial instruments are used exclusively for hedging

interest, currency and energy price risks. All individual transactions cor-

respond to on-balance-sheet or anticipated underlyings (for instance

bonds, purchases of diesel fuel and electricity). the aim is to achieve

qualification as an effective hedge in accordance with iAS 39.

Interest rate risksin line with the length of time that assets are tied up, the financial

requirement is covered mainly by issuing long-term and fixed-interest

bonds. interest rate management comprises a comparatively low

amount of variable interest for optimizing interest costs. interest rate

derivatives such as interest rate swaps, caps, floors and collars may

be used for managing the fixed-floating ratio.

in accordance with iFRS 7, existing interest rates are detailed by

means of a sensitivity analysis which investigates the effects of theo-

retical changes in market interest rates on results and shareholders’

equity.

the sensitivity analysis which has been carried out has taken ac -

count of the following financial instruments:

A derivatives designated in cash flow hedges (interest hedges and

cross-currency hedges) have an impact on the hedge reserve in

equity and are therefore taken into consideration in the sensitivity

calculations relating to equity.

A Financial instruments with a variable return have an impact on net

interest income. this is applicable to variable-income cross-cur-

rency swaps as well as variable-rate loans/finance leases.

A cash at banks and current borrowings/deposits with banks have

an impact on net interest income.

if the level of market interest rates for the exposure had been 100 basis

points higher (lower) as of the balance sheet date, the result would

have been affected as follows:

[€ million]

Changes in market level of interest rates

2013 2012

+ 100 BP 1) – 100 BP 1) + 100 BP 1) – 100 BP 1)

Impact on comprehensive income + 21 – 22 + 5 – 4

thereof recognized in the income statement + 9 – 9 + 3 – 3

thereof covered directly in equity + 12 – 13 + 2 – 1

1) Basis points.

Foreign currency risksthe foreign currency risks are attributable to financing measures and

operating activities.

in order to avoid interest rate and foreign currency risks, the for-

eign currency bonds issued within the framework of Group financing

are converted into euro liabilities by means of cross-currency swaps.

however, it is not necessary for such bonds to be converted in indi-

vidual cases if there is a guarantee that the bond can be serviced out

of inflows of foreign currency payments.

Group treasury extends loans to foreign subsidiaries in their func-

tional currency. these positions are normally hedged with the aid of

derivative financial instruments.

We have international operations with our activities and are thus

exposed to operational exchange rate risks. in order to minimize these

risks, the subsidiaries take out internal foreign exchange transactions

with Group treasury and hedge all major foreign currency positions in

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their functional currency. Group treasury in turn hedges its open for-

eign currency positions by way of opposite transactions on the financial

markets. in exceptional cases and to a limited extent, subsidiaries are

permitted to hedge foreign currency positions with banks themselves.

in order to present foreign currency risks, iFRS 7 requires a sensi-

tivity analysis which investigates the effects of theoretical changes in

foreign currency relations on result and shareholders’ equity.

the currency sensitivity analysis is based on the following

assump tions:

A the cross-currency swaps which are concluded and the current cur-

rency transactions are always allocated to original underlyings.

A All major foreign currency positions arising from operating activi-

ties are always 100 % hedged. if exchange rate changes are 100 %

hedged, they do not have any impact on results or capital.

A Foreign currency risks can only occur if a 100 % hedge does not

exist in justified exceptional cases; for instance if a conservative

estimate is made for hedge volumes for anticipated foreign cur-

rency cash flows in order to avoid overhedging.

A on-balance-sheet foreign currency risks may result from energy

price hedging which is not denominated in the respective func-

tional currency.

if the following foreign currencies for currency hedges had weakened

(or strengthened) by 10 % as of the balance sheet date, the result

would have been affected as follows:

[€ million]

Appreciation of foreign currency by

2013 2012

+ 10 % – 10 % + 10 % – 10 %

GBP + 12 – 15

CHF + 1 – 1 + 1 – 1

CNy + 2 – 2

HKD – 3 + 3

SGD + 2 – 2

TRy – 1 + 2

dB Group has numerous equity investments in foreign subsidiaries,

whose net assets are exposed to a translation risk. this translation risk

is not perceived to be a foreign currency risk for the purposes of iFRS 7,

and is not hedged.

Energy price risksdB Group is the largest consumer of electricity in Germany. in addi-

tion, the Group also requires considerable volumes of diesel fuel. the

high energy procurement volume and the volatility of electricity and

mineral oil markets result in substantial earnings risks, which are con-

tinuously monitored.

the Energy price Risk management committee (ERmc) is respon-

sible for managing and minimizing these risks; this committee is re -

spon sible for ensuring the implementation of the risk policy of dB Group

specifically with regard to energy price risks. the ERmc takes deci-

sions with regard to specific hedging strategies and measures in which

financial and energy derivatives are used.

Swaps relating to the commodities underlying the price formulae

(coal and heating oil) are used as hedges for the risks of price changes

for sourcing electricity.

diesel price risks are for instance limited by taking out diesel

swaps (hybrid hedges of diesel price and currency risks and individual

hedges of currency risks are possible in exceptional cases).

Energy price risks are quantified by means of sensitivity analyses

in accordance with iFRS 7. these provide information concerning the

effects of theoretical energy price changes on result and equity (in

relation to the balance sheet exposure on the balance sheet date).

the following assumptions have been made for performing the

sensitivity analyses:

A in the case of energy price swaps, the effective part is recognized

in equity, and the ineffective part is recognized in the income

statement.

A if options are used (collars), the intrinsic value constitutes the

effective part of the hedge, so that the intrinsic value is shown in

shareholders’ equity. on the other hand, the fair value is not part

of the hedge, and is shown in the income statement.

if the energy prices at the end of the year had been 10 % lower (or

higher), the result would have been affected as follows:

[€ million]

Changes in market prices

2013 2012

+ 10 % – 10 % + 10 % – 10 %

Impact on comprehensive income + 128 – 128 + 152 – 152

thereof recognized in the income statement – 1 + 1 – 1 + 1

Diesel – 1 + 1 – 1 + 1

Hard coal + 0 + 0 + 0 + 0

HSL + 0 + 0 + 0 + 0

thereof covered directly in equity + 129 – 129 + 153 – 153

Diesel + 108 – 108 + 128 – 128

Hard coal + 10 – 10 + 14 – 14

HSL + 11 – 11 + 11 – 11

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Counterparty default risk of interest, currency and energy derivativescounterparty default risk is defined as possible losses due to the

default of counterparties (“worst-case scenario”). it represents the

replacement costs (at market values) of the derivative financial instru-

ments for which dB Group has claims against contract partners. the

counterparty default risk is monitored and actively managed by way

of strict requirements relating to the creditworthiness of the counter-

party at the point at which the transactions are concluded and also

throughout the entire life of the transactions, and also by way of

defining risk limits.

in order to minimize the credit risk of long-term derivative transactions,

dB Group has concluded credit support agreements (cSA) with its core

banks. in the cSA, it was agreed that both parties would mutually

provide cash securities for interest and cross-currency swaps as well

as energy derivatives. the daily exchange of securities with all rele-

vant banks has been taking place since the end of march 2013.

Related amounts which are not netted in the balance sheet:

the decline in the counterparty default risks compared with the pre-

vious year is mainly attributable to the development in value of the

cross-currency swaps and the energy price derivatives. the maximum

individual risk – default risk in relation to individual contract part-

ners – is € 47 million, and exists in relation to a bank with a moody’s

rating of A3. For transactions with terms of more than one year, all

banks which are exposed to a counterparty default risk have at least

a moody’s rating of Baa2.

Liquidity riskliquidity management involves maintaining adequate liquid assets,

constantly checking the commercial paper market for ensuring ade-

quate market liquidity and depth and the constant availability of finan-

cial resources via guaranteed credit facilities of banks (see note (28)

[ page 245 ff.]).

the following table shows the contractually agreed undiscounted

interest payments and redemption payments relating to the original

financial liabilities as well as the derivative financial instruments with

a positive and negative fair value of dB Group:

[€ million]

Financial assets /liabilities shown in the balance sheet

Appreciation of foreign currency by

Financial instruments

Cash securities received /provided Net amounts

deC 31 , 201 3

Derivative financial instruments – assets 86 – 39 0 47

Derivative financial instruments – liabilities 442 – 39 –292 111

deC 31 , 201 2

Derivative financial instruments – assets 201 – 94 0 107

Derivative financial instruments – liabilities 315 – 94 0 221

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269 Other disclosures

267Consolidated finanCial statements NOtes tO the cONsOlidated fiNaNcial statemeNts

Maturity analysis of financial liabilities

Maturity analysis of financial liabilities as of Dec 31, 2013 [€ million]

2014 2015 2016 –2018 2019 –2023 2024 and later

Fixed /variable interest

Redemp- tion


Redemp- tion


Redemp- tion


Redemp- tion


Redemp- tion

NoN -derivative fiNaNcial liabilities

Interest-free loans – 220 – 220 – 630 – 809 – 156

Bonds 508 403 501 700 1,284 5,210 909 7,136 298 2,083

Commercial paper – – – – – – – – – –

Bank borrowings 14 39 17 5 32 404 32 400 – –

EUROFIMA loans 37 519 8 – 24 – 24 200 – –

Finance lease liabilities 36 59 33 160 58 234 44 85 110 96

Other financial liabilities – 10 – – – – – 2 – –

Trade liabilities – 4,379 – 28 – 94 – 62 – –

Other/miscellaneous liabilities – 3,019 – 20 – 31 – 36 – –

DERIvATIvE FInAnCIAl lIABIlITIEs (nET/gROss sET TlED)

Interest /currency derivatives connected with cash flow hedges 125 879 95 206 217 1,354 138 1,537 3 83

Interest derivatives not connected with cash flow hedges – – – – – – – – – –

Interest derivatives connected with cash flow hedges 1 – 1 – 1 – – – – –

Currency derivatives connected with cash flow hedges – 788 – – – – – – – –

Currency derivatives not connected with cash flow hedges – 379 – 0 – – – – – –

Energy price derivatives 33 – 32 – 39 – 3 – – –

DERIvATIvE FInAnCIAl A ssETs (gROss sET TlED)

Interest /currency derivatives connected with cash flow hedges 25 125 25 77 67 96 96 205 50 699


Interest derivatives connected with cash flow hedges – – – – – – – – – –

Currency derivatives connected with cash flow hedges – 312 – 0 – – – – – –

Currency derivatives not connected with cash flow hedges – 309 – 5 – 58 – 47 – –

Energy price derivatives – – – – – – – – – –

voluNtary iNformatioN about derivatives

DERIvATIvE FInAnCIAl A ssETs (nET sET TlED)

Interest /currency derivatives connected with cash flow hedges – – – – – – – – – –



Currency derivatives connected with cash flow hedges – – – – – – – – – –

Currency derivatives not connected with cash flow hedges – – 0 – – 0 – – – – – –

Energy price derivatives –25 – –21 – –7 – 0 – – –

InFlOw OF FUnDs FROM DERIvATIvE FInAnCIAl InsTRUMEnTs (gROss sET TlED)

Interest /currency derivatives connected with cash flow hedges – 108 – 957 – 89 –274 –215 – 1,396 – 191 – 1,693 – 63 –771



Currency derivatives connected with cash flow hedges – – 1,099 – – 0 – – – – – –

Currency derivatives not connected with cash flow hedges – – 687 – – 6 – – 58 – – – –


fiNaNcial warr aNties

Financial warranties – 50 – – – – – – – –

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268 deutsChe Bahn Group 2013 aNNual RepORt

Maturity analysis of financial liabilities as of Dec 31, 2012 [€ million]

2013 2014 2015 –2017 2018–2022 2023 and later


Redemp-° tion


Redemp- tion


Redemp- tion


Redemp- tion


Redemp- tion

NoN -derivative fiNaNcial liabilities

Interest-free loans – 220 – 220 – 645 – 859 – 311

Bonds 494 750 461 509 1,250 4,068 961 7,092 285 1,746

Commercial paper – – – – – – – – – –

Bank borrowings 15 81 17 9 41 409 41 402 – –

EUROFIMA loans 37 – 37 519 24 – 32 200 – –

Finance lease liabilities 45 449 37 69 74 341 61 136 117 103

Other financial liabilities – 10 – – – – – – – –

Trade liabilities – 4,406 – 47 – 97 – 119 – –

Other/miscellaneous liabilities – 2,814 – 13 – 34 – 36 – –

DERIvATIvE FInAnCIAl lIABIlITIEs (nET/gROss sET TlED)

Interest /currency derivatives connected with cash flow hedges 97 510 78 491 163 891 96 911 6 84


Interest derivatives connected with cash flow hedges 1 – 1 – 1 – – – – –

Currency derivatives connected with cash flow hedges – 248 – – – – – – – –

Currency derivatives not connected with cash flow hedges – 322 – – – – – – – –

Energy price derivatives 17 – 21 – 15 – – – – –

DERIvATIvE FInAnCIAl A ssETs (gROss sET TlED)

Interest /currency derivatives connected with cash flow hedges 40 24 40 422 57 498 34 365 – –



Currency derivatives connected with cash flow hedges – 674 – 13 – – – – – –

Currency derivatives not connected with cash flow hedges – 442 – 5 – 16 – 47 – –


voluNtary iNformatioN about derivatives

DERIvATIvE FInAnCIAl A ssETs (nET sET TlED)

Interest /currency derivatives connected with cash flow hedges – – – – – – – – – –



Currency derivatives connected with cash flow hedges – – – – – – – – – –

Currency derivatives not connected with cash flow hedges – – – – – – – – – –

Energy price derivatives – 39 – –24 – –29 – – 1 – – –

InFlOw OF FUnDs FROM DERIvATIvE FInAnCIAl InsTRUMEnTs (gROss sET TlED)

Interest /currency derivatives connected with cash flow hedges – 92 – 506 –78 – 951 – 141 – 1,370 – 69 – 1,319 – 3 – 84



Currency derivatives connected with cash flow hedges – – 926 – – 14 – – – – – –

Currency derivatives not connected with cash flow hedges – –765 – – 6 – – 16 – – 47 – –


fiNaNcial warr aNties

Financial warranties – 136 – – – – – – – –

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this includes all instruments which were held at the end of 2013 and

for which payments had already been agreed. foreign currency amounts

have been translated using the spot rate applicable as of the balance

sheet date. the variable interest payments attributable to the financial

instruments have been calculated on the basis of the interest rates

applicable on december 31, 2013 (previous year on december 31, 2012).

financial liabilities which can be repaid at any time are allocated to

the earliest possible time segment.

the financial liabilities are opposed by cash and cash equivalents

of € 2,861 million, consisting of positive account balances (50 %) and

current fixed-term deposits (50 %).

Other disclOsures

(35) Contingent receivables and liabilities as well as guarantee obligationscontingent receivables were stated as € 234 million as of december

31, 2013 (as of december 31, 2012: € 53 million), and comprise a claim

for damages in relation to settlement proceedings which were pending

as of the closing date as well as a claim for a refund of investment grants

which had been paid; however, as of the balance sheet date, the extent

and due date of the claim was not sufficiently certain.

injunction proceedings and official investigations were initiated or

continued in relation to various cartel issues in the course of the finan-

cial year. as of the balance sheet date, no contingent receivables had

been recognized for all injunction proceedings in view of the high level

of uncertainty relating to refund claims, the timing of refunds and the

probability of refunds.

the contingent liabilities are broken down as follows:


2013 Dec 31,

2012

Contingent liabilities from

Provision of warranties 0 0

Other contingent liabilities 454 105

Total 454 105

the other contingent liabilities essentially relate to a potential tax law

dispute in Germany and a claim for repayment of grants in connection

with settlement proceedings pending as of the closing date. they also

comprise risks arising from litigation which had not been stated as pro-

visions because the expected probability of occurrence is less than 50 %.

there are also contingencies of € 50 million from guarantees as of

december 31, 2013 (as of december 31, 2012: € 97 million). the decline

relates particularly to customs guarantees in the dB schenker logistics

segment. fixed assets with carrying amounts of € 46 million (as of

december 31, 2012: € 159 million) were also used as security for loans.

the reported figure essentially relates to rolling stock and buses

which are used at the operating companies in the segments dB arriva,

dB Bahn Regional and dB Bahn long-distance.

cartel authorities have been investigating companies in the freight

forwarding sector worldwide since the autumn of 2007. in conse-

quence, dB aG and schenker/BaX have paid fines of € 35.9 million in

europe and usd 23.3 million in the usa in 2011 and 2012. Not all cartel

authority proceedings are expected to be concluded before the end of

2014. the european commission has also started proceedings against

companies in the freight forwarding sector due to the suspicion of

anti-competitive collusion in relation to rail freight services to south-

eastern europe, and carried out house searches at the locations of

dB schenker in Vienna and athens on June 18, 2013.

dB Group acts as guarantor mainly for equity participations and

joint ventures, and is subject to joint and several liability for all syndi-

cates in which it is involved.

(36) Other financial obligationsthe other financial obligations amounted to € 21,827 million as of

december 31, 2013 (as of december 31, 2012: € 20,280 million).

capital expenditures in relation to which the company has entered

into contractual obligations as of the balance sheet date, but for which

no consideration has yet been received, are broken down as follows:

[€ million]Dec. 31,

2013 Dec. 31,

2012

Committed capital expenditures

Property, plant and equipment 16,083 13,951

Intangible asset 10 2

Outstanding contributions 383 389

Total 16,476 14,342

the increase in the order commitment for property, plant and equip-

ment is mainly attributable to the procurement of new rolling stock –

and in particular icx trains and electric locomotives – as well as an

increase in the contracted volume of capital expenditures as a result

of own construction work. in the case of some supply arrangements,

there are independent admissions of guilt with regard to fulfilling the

order commitment; these are opposed by claims of the same amount,

backed by bank guarantees and insurance policies with maximum

ratings.

Of the figure shown for outstanding contributions, € 383 million

(as of december 31, 2012: € 389 million) relates to outstanding contri-

butions at euROfima which have not been called in. Various compa-

nies in dB Group have leased assets, e.g. property, buildings, technical

equipment, plant and machinery as well as operational and business

equipment within the framework of operating lease agreements.

the terms of the future minimum payments arising from operating

lease agreements are set out in the following table:

[€ million]

nominal values

Dec 31, 2013

Dec 31, 2012

less than 1 year 1,246 1,319

1 to 2 years 864 899

2 to 3 years 709 737

3 to 4 years 553 586

4 to 5 years 413 486

More than 5 years 1,566 1,911

Total 5,351 5,938

the decline also reflects shorter rental terms.

æ

æ

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(37) Infrastructure and transport contracts the following notes and information refer to the requirements of sic-29

(disclosure – service concession arrangements).

infrastruCture ContraCts

the main rail infrastructure companies (Rics) of dB Group are dB Netz

aG, dB station & service aG and dB energie Gmbh.

On the basis of section 6 of the General Railways act (allgemeines

eisenbahngesetz, aeG), the Ric which operate track, control and secu-

rity systems or platforms require approval for such operations. this is

applicable particularly for dB Netz aG and dB station & service aG,

whose approvals are valid until the end of december 31, 2048.

the rights of the Ric to operate the railway infrastructure is con-

nected to various obligations. they are required in particular to man -

age their operations safely, construct the rail infrastructure in a safe

manner and ensure that it is maintained in a safe condition (section 4

(1) aeG). With regard to compliance with this regulation, the Ric of

dB Group are regulated by the eBa.

in addition, the Ric also have to observe statutory duties with

regard to noise abatement in the case of any new and expansion proj-

ects. dB Group voluntarily participates in the “Rail noise abatement

program” of the federal Republic of Germany for existing lines.

the Ric provide non-discriminatory access to the rail infrastruc-

ture in accordance with sections 14 et seq. aeG, and charge the train

operating companies (tOcs) for this access. the charges of dB Netz aG

and dB station & service aG must comply with the requirements of the

aeG and Rail infrastructure utilization Ordinance (eisenbahninfra-

struktur-Benutzungsverordnung; eiBV); in accordance with the deci-

sion of November 9, 2010, dB energie is obliged to have its charges

for the use of traction power lines approved in accordance with the

energy industry law (energiewirtschaftsgesetz; enWG). the first

approval proceedings have been concluded – retrospectively for the

years 2005 to 2013. the cost audit for the second incentive regulation

period (2014 – 2018) is ongoing at present.

in the year under review, dB Netz aG, dB station & service aG as

well as dB energie Gmbh generated overall revenues of € 8,422 million

(previous year: € 8,398 million); of this figure, € 2,286 million (previous

year: € 2,360 million) was generated with non-Group customers.

the assets of the rail infrastructure are the legal and economic

property of the companies.

transport ContraCts

service licenses and similar approvals which guarantee the general

public access to important economic and public facilities have been

granted to companies in dB Group. this is applicable particularly for

dB Regio aG as well as its subsidiaries which conduct regional rail

passenger operations.

dB Regio aG and its subsidiaries provide transport services on the

basis of ordered-service contracts. these so-called “transport contracts

for local passenger transport services” are signed with the organization

which orders the transport services (e.g. federal states, special-pur-

pose association, local transport company); these contracts determine

the way in which the transport service is provided and continued, and

also governs the relevant compensation (concession fees) paid for the

transport services.

the funds necessary for this purpose are made available to the federal

states by the federal Government in accordance with the regulations

of the Regionalization act (Regionalisierungsgesetz; RegG). the con-

cession fees received by the subsidiaries of the segment dB Bahn

Regional amounted to a total of € 4,184 million in the year under review

(previous year: € 4,266 million) (see note (1) [ page 230 ]).

the transport contracts usually run for periods of between eight

and 15 years. in the year under review, the fact that most German

transport agreements include a provision for the concession fee to

increase by 1.5 % p.a., as well as revenues attributable to final settle-

ments of previous years and successful quality improvements could

not compensate for the effects of invitation-to-tender losses and loss

of margin as well as performance cuts of the ordering organizations in


in addition, there are similar transport agreements with interna-

tional ordering organizations in the segment dB arriva, with a volume

of € 599 million (previous year: € 471 million) (see note (1) [ page 230 ]).

the overall number of secured transport contracts will remain

constant until the end of 2014; 75 % of the transport contracts are due

to run until at least 2017, 50 % are due to run until at least 2020 and 25 %

until at least 2025. the transport contracts can only be terminated by

the ordering organization during the term of the contract for a com-

pelling reason.

the companies enjoy legal and beneficial ownership of virtually all

of the assets necessary for providing the services, and in particular

the rolling stock. No special obligations exist after the end of the

contract term.

(38) Related-party disclosures the following parties are deemed to be related parties of dB Group in

accordance with ias 24 (Related-party disclosures):

A the federal Republic of Germany in its capacity as the owner of all

shares in dB aG,

A the companies or enterprises subject to the control of the federal

Republic of Germany (referred to in the following as “federal

companies”),

A affiliated, non-consolidated and associated companies as well as

joint ventures of dB Group, as well as

A the members of the management Board and the supervisory

Board of dB aG and their close relatives.

transactions with related parties are conducted on an arm’s length

basis.

the figures attributable to related companies and persons are

stated under the corresponding items of the “Notes to the balance

sheet” with the designation “thereof.” individual figures are set out in

the notes (19) [ page 240 ff.] , (28) [ page 245 ff.] and (29) [ page 249 ] .

details and explanations of transactions between dB Group and the

federal Republic of Germany are included in the notes (3) [ page 230 f.] ,

(5) [page 231 et f.] , (9) [page 233 ] , (13) [page 235 ff.] , (32) [page 254 ff.] , (36)

[ page 269 ] and (37) [ page 270 ] .

significant economic relations which need to be reported sepa-

rately between dB Group and related companies and persons are

explained in the following:

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relationships with the

federal repuBliC of Germany

[€ million]

Federal Republic of germany

2013 2012

services received by db Group

Purchase of goods and services 1,584 1,658

lease and rental payments made 1 1

Investment grants received 4,280 4,116

Other income grants received 186 186

6,051 5,961

services reNdered by db Group

sale of goods and services 316 322

lease and rental payments received 10 10

Other services rendered 124 108

Repayment of loans 220 385

Repayment of investment grants 81 110

Repayment of other income grants 69 3

820 938

other disclosures

Unsecured receivables 1) 142 103

Unsecured liabilities 1) 1,914 2,079

Current total of guarantees received 1) 1,581 1,595

1) As of the balance sheet date.

purchases of goods and services mainly comprise the fees paid to the

federal Republic of Germany within the framework of the pro forma

billing of the allocated civil servants as well as cost refunds for staff

secondments in the service provision field.

in the year under review, the federal employment agency refunded

to dB Group subsidies of about € 22 million for which an application

has been made in accordance with the semi-Retirement act (alters-

teilzeitgesetz; alttZG) section 3 alttZG in conjunction with sections

4, 16 alttZG. the claim to such payments is justified when a person is

appointed to the position which has become free as a result of the

semi-retirement arrangement.

dB aG and the Ric have signed a performance and financing agree-

ment (leistungs- und finanzierungsvereinbarung; lufV) with the

federal Republic of Germany represented by the federal ministry of

transport, Building and urban development. this agreement governs

the financing regime for the existing network in a quality-oriented

manner. the agreement came into force on January 1, 2009. the dura-

tion of the lufV was extended from the end of 2013 to the end of 2015

by way of a second addendum to the lufV of september 6, 2013. the

federal Republic of Germany undertakes to make payments of

€ 2.5 billion per calendar year to the Ric which are earmarked exclu-

sively for carrying out replacement capital expenditures for the track

(infrastructure contribution and simultaneously minimum replace-

ment investment contribution) under the terms of this agreement. the

Ric undertake to use a further € 0.5 billion per annum for maintaining

and modernizing the existing network. during the period covered by

the agreement, the Ric also undertake to use a minimum amount of

€ 1.25 billion (2009) and € 1.0 billion (starting 2010) per annum for the

specific purpose of maintaining the track (so-called minimum mainte-

nance contribution). in connection with the prolongation of the lufV,

dB aG and the Ric also signed an agreement with the federal Republic

of Germany on september 6, 2013 according to which the federal

Government, in the budget years 2013 and 2014, and depending on

available budget funds, will use any federal funds of up to € 250 million

per annum which are not utilized in the requirement plan and transfer

such funds from the budget item for the requirement plan to the budget

item for the existing network. the regulations of the lufV regarding

the infrastructure contribution of the federal Government are appli-

cable accordingly for the transferred amounts. the transferred amounts

are to be used mainly for providing additional finance for capital

expenditures in the barrier-free expansion of interchanges as well as

planning services and replacement capital expenditures in railway

bridges. the agreement also provides for federal funds in the amount

of the transferred amounts to be taken from the budget item for the

existing network and used for the requirement plan project “schienen-

hinterlandanbindung der festen fehmarnbeltquerung” (rail hinterland

connection for the permanent fehmarn Belt crossing) in accordance

with the financing agreement still to be concluded on the basis of the

state treaty. the Ric are responsible for guaranteeing operation of the

infrastructure, and are measured against the attainment of quality

targets as well as evidence of minimum replacement capital expendi-

tures and minimum maintenance; if these requirements are not

attained, the funds might be reclaimed. the application of funds as

well as success in attaining the quality targets is documented by the

infrastructure status and development report. the federal Republic

of Germany is authorized to reclaim all or part of its infrastructure

contribution if the Ric fail to meet the agreed targets. On the occasion

of the extension of the lufV, dB aG and the Ric signed an agreement

with the federal Republic of Germany regarding the need to combat

corruption and also regarding cartel damages relating to the infra-

structure financing contribution of the federal Republic of Germany.

With this agreement, the regulations agreed between dB aG and the

federal Republic of Germany regarding these areas have essentially

been extended to the lufV.

further investment grants are provided in accordance with the

municipal transport financing act (Gemeindeverkehrsfinanzierungs -

gesetz; GVfG) for measures of the transport program. in the year under

review, the federal Government provided funds for the final time for

carrying out measures at passenger stations within the framework of

the infrastructure acceleration program (infrastrukturbeschleuni-

gungsprogramm; iBp) which was signed in the course of 2012.

in the year under review, dB aG signed an agreement with the

federal Republic of Germany regarding the infrastructure acceleration

program ii (infrastrukturbeschleunigungsprogramm ii; iBp ii). the iBp

ii is used for financing individual measures of noise protection for the

rail tracks of the federal Republic of Germany. the funds are made

available to dB Netz aG.

On december 19/20, 2013, a financing agreement was signed

between dB aG and the federal Republic of Germany for remedying

flood damage caused to the track network of the Ric in the year under

review. On the basis of the damage reports which have been sub-

K


mitted to the federal Republic of Germany, a total of about € 100 mil-

lion is to be made available to dB aG, spread over the years 2013 to

2015. the funds will be used for remedying flood damage to tracks and

concourse buildings which are used as interchanges in the catchment

area of the elbe and danube river basins.

dB aG has been approved funds of the european union for infra-

structure projects in the fields of trans-european networks (teN) and

for the regional development of transport infrastructure (efRe).

the grants recognized in the income statement relate also to pay-

ments provided by the federal Republic of Germany for covering

excessive burdens borne by dB Group as a result of operating and

maintaining equal-height crossings with roads of all construction

authorities.

sales of goods and services also comprise services for carrying

severely disabled persons, Bundeswehr soldiers and Bundeswehr

traffic.

dB aG repaid to the federal Republic of Germany interest-free

loans of € 220 million in accordance with the BsWaG. the payments

were made within the framework of the agreed annual standard

payment.

the liabilities due to the federal Republic of Germany comprise

the extended loans, which are shown here with their present values,

and other liabilities of € 270 million (as of december 31, 2012:

€ 290 million).

the guarantees received from the federal Republic of Germany

primarily relate to the loans received from euROfima as well as the

outstanding contributions and liabilities arising from collective lia-

bility of dB aG at euROfima. the guarantees which have been

received include a maximum commitment of € 1,153 million of the fed-

eral Government for loans of euROfima. the loan volume amounted

to € 719 million as of the balance sheet date.

the following agreements were concluded with the federal

Republic of Germany in the year under review:

Nine new financing agreements were concluded in the year under

review in addition to the adjustment agreement 2013. the federal

Republic of Germany has provided finance totaling about € 1,560 mil-

lion for the new agreements. Of this figure, about € 47 million relates

to the year under review. the financing agreements have different

terms, which in certain cases extend to the year 2025. financing is

provided completely in the form of investment grants which do not

have to be repaid.

for the years 2004 to 2008, dB aG has waived its entitlement to

reimbursement of the costs for employees and assigned civil servants

which it incurs as a result of the fact that employment contracts which

were transferred to dB aG in accordance with section 14 (2) of the

deutsche Bahn foundation act (deutsche Bahn Gründungsgesetz;

dBGrG) cannot be terminated (see section 21 (5) and (6) dBGrG)

although the personnel requirement has diminished because of tech-

nical, operational and organizational measures. starting in 2009, a

general payment settled these claims for the years 2009 to 2012 in

accordance with the conditions of section 21 (5) dBGrG. for the entire

period, dB aG received a refund of about € 279 million. a follow-on

agreement was signed on december 2, 2013 for the years 2013/2014.

under the terms of the new agreement, claims of dB aG are charged

to the federal Republic of Germany every month on the basis of the

number of entitled employees. the amount of the annual reimburse-

ment is limited to € 99 million.

relations with federal Companies

most of the transactions carried out in accordance with ias 24 in the

year under review and in the previous year period related to opera-

tions, and overall were of minor significance for dB Group. the receiv-

ables and liabilities which had arisen were virtually completely settled

as of the balance sheet date.

Business relations with deutsche telekom and deutsche post

regarding the use of telecommunications and postal services have

taken place to the usual extent.

relations with affiliated non-Consolidated

Companies, assoCiates and joint ventures

in the year under review, dB Group purchased goods and services

worth € 165 million (previous year: € 186 million), mainly for purchasing

passenger and freight transport services. at € 159 million (previous

year: € 181 million), most of the total figure which has been reported

is attributable to transactions with associates. Rental and leasing pay-

ments of € 7 million were also made (previous year: € 6 million).

interest payments of € 38 million (previous year: € 42 million) were

also incurred in the year under review. this figure relates almost exclu-

sively to interest payments for the loans extended by euROfima.

please refer to the details under note (28) [ page 245 et seq.] .

in the year under review, dB Group generated revenues of € 426 mil -

lion (previous year: € 472 million) from sales of goods and services.

the revenues were generated mainly in the dB schenker Rail segment

and relate to revenues generated by transport services which were

provided.

Guarantees totaling € 17 million (as of december 31, 2012: € 25 mil-

lion) have been extended; of this figure € 17 million (as of december

31, 2012: € 25 million) was attributable to joint ventures. an equivalent

volume of transactions with related companies was conducted in the

previous year period.

relations with the manaGement Board

and supervisory Board of dB aG

the following section sets out the transactions between dB Group and

the members of the management Board and the supervisory Board,

as well as the companies in which members of the management Board

or the supervisory Board own a majority interest.

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[€ thousand] 2013 2012

services reNdered by db Group

sale of goods and services 13,702 18,291

Trade receivables as of Dec 31 191 196

services received by db Group

Purchase of goods and services 23,076 36,465

Trade liabilities as of Dec 31 1,720 1,992

the revenues of € 13,702 thousand (previous year: € 18,291 thousand)

generated by dB Group (service provider) mainly comprise transport

and freight forwarding services of the dB schenker Rail and dB schen-

ker logistics segments; of this figure, € 4,354 thousand (previous year:

€ 2,637 thousand) was generated with the sms Gmbh Group, and

€ 13,884 thousand (previous year: € 16,655 thousand) was generated

with the Georgsmarienhütte holding Gmbh Group.

the goods and services purchased by dB Group (service recipient)

comprise almost entirely supplies of Georgsmarienhütte holding

Gmbh Group.

Compensation of the manaGement Board

[€ thousand] 2013 2012

Total compensation of the Management Board 9,653 11,429

Fixed 7,102 5,941

variable 2,551 5,488

severance payments including additional benefits 0 0

Payments from deferred compensation 0 0

short-term 5,051 7,134

long-term 1) 4,602 4,295

Compensation of former members of the Management Board and their surviving dependants 3,257 3,693

Retirement benefit obligations in respect of former members of the Management Board and their surviving dependants 2) 64,600 65,471

1) The figure for long-term compensation consists of retirement provisions (€ 3,523 thousand ) and long-term incentives (€ 1,079 thousand ).

2) Details of defined benefit obligations.

No loans and advances were extended to members of the manage-

ment Board in the year under review. Nor did the company take on any

contingencies for the benefit of members of the management Board.

Compensation of the supervisory Board

[€ thousand] 2013 2012

Total compensation of the supervisory Board 746 940

thereof short-term 746 940

thereof fixed 520 522

thereof variable – 230

thereof attendance fees 44 34

thereof benefits in kind from discounted travel 67 57

thereof compensation for membership in supervisory boards /advisory boards of DB group companies (including attendance fees) 115 97

No compensation was incurred for former members of the supervisory

Board and their surviving dependants. there are no pension obliga-

tions for former members of the supervisory Board and their surviving

dependants.

No loans and advances were extended to members of the super-

visory Board in the year under review. Nor did the company take on

any contingencies for the benefit of members of the supervisory Board.

individual details as well as further details concerning the pay-

ments of the members of the management Board and supervisory

Board are included in the corporate Governance report in the Group

management report.

(39) Events after the balance sheet dateOn January 14, 2014, the pending settlement which existed on the

balance sheet date in relation to a claim for damages (see note (35)

[ page 269 ]) became effective as a result of the approval of the relevant

bodies and also the affected sponsor.

dB finance issued the following bonds in 2014:

volume of issue Term (years) Coupon (%) Placing

AUD 90 million (roughly € 59 million) 10 5.395

Private placing in Asia

sEK 1,250 million (roughly € 142 million), first tranche 7 2.875

Institutional investors in

scandinavia

sEK 350 million (roughly € 40 million), second tranche 7

3-month stibor plus 53

basis points


scandinavia

CHF 300 million (roughly € 246 million) 10.5 1.5

swiss investors

sgD 125 million (roughly € 73 million) 5 2.29


singapore

the budget statements indicating which infrastructure financing funds

would be applicable for the rail infrastructure has not been finalized

at the point at which the annual financial statements for 2013 were

prepared. dB Group is assuming that a reasonable amount will be

available for maintaining the substance of the existing network and

that it will be continued at a higher level starting in 2017. depending

on the eventual budget statement, the final budget and contractual

principles for infrastructure financing may have a considerable impact

on the situation and development of dB Group (please refer to the

comments in the section “Critical assessments and appraisals” [ page

227 ff.] .

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290 Independent auditor’s report290 Report on the consolidated financial statements290 Report on the group management report


(40) Exemption of subsidiaries from the disclosure requirements of the German Commercial Code the following subsidiaries intend to utilize the possibility of section

264 (3) and 264b HGB not to disclose their financial statements:

A AMeRopA-ReISen GmbH, Bad Homburg v. d. Höhe

A Autokraft GmbH, Kiel

A Bayern express & p. Kühn Berlin GmbH, Berlin

A BBH BahnBus Hochstift GmbH, paderborn

A BRn Busverkehr Rhein-neckar GmbH, ludwigshafen am Rhein

A BRS Busverkehr Ruhr-Sieg GmbH, Meschede

A Btl nord GmbH, lübeck

A BVo Busverkehr ostwestfalen GmbH, Bielefeld

A BVR Busverkehr Rheinland GmbH, Düsseldorf

A DB Busverkehr Hessen GmbH, Gießen

A DB Dialog GmbH, Berlin

A DB Dienstleistungen GmbH, Berlin

A DB european Railservice GmbH, Dortmund

A DB FuhrparkService GmbH, Frankfurt am Main

A DB Gastronomie GmbH, Frankfurt am Main

A DB Intermodal Services GmbH, Mainz

A DB International GmbH, Berlin

A DB JobService GmbH, Berlin

A DB Kommunikationstechnik GmbH, Berlin

A DB Media & Buch GmbH, Kassel

A DB Mobility logistics AG, Berlin

A DB projekt Stuttgart-ulm GmbH, Stuttgart

A DB projektBau GmbH, Berlin

A DB Regio Bus Bayern GmbH, Coburg

A DB Regio Bus ost GmbH, potsdam

A DB Rent GmbH, Frankfurt am Main

A DB Schenker Btt GmbH, Mainz

A DB Schenker nieten GmbH, Freilassing

A DB Schenker Rail Automotive GmbH, Kelsterbach

A DB Schenker Rail Corridor operations GmbH, Mainz

A DB Schenker Rail Deutschland Aktiengesellschaft, Mainz

A DB Sicherheit GmbH, Berlin

A DB Systel GmbH, Frankfurt am Main

A DB Systemtechnik GmbH, Minden

A DB Vertrieb GmbH, Frankfurt am Main

A DB Zeitarbeit GmbH, Berlin

A DVA Deutsche Verkehrs-Assekuranz-Vermittlungs-GmbH,

Bad Homburg

A elAG emder lagerhaus und Automotive GmbH, emden

A elSpeD Speditions-Gesellschaft m.b.H., Hamburg

A eVAG emder Verkehrs und Automotive Gesellschaft mbH,

emden

A eVB Handelshaus Bour GmbH, landau in der pfalz

A Friedrich Müller omnibusunternehmen GmbH, Schwäbisch Hall

A Haller Busbetrieb GmbH, Walsrode-Honerdingen

A Hanekamp Busreisen GmbH, Cloppenburg

A Intertec Beteiligungs-GmbH, landau in der pfalz

A Intertec GmbH, landau in der pfalz

A Intertec Retail logistics GmbH, landau in der pfalz

A Inter-union technohandel GmbH, landau in der pfalz

A Karpeles Flight Services GmbH, Frankfurt am Main

A nVo nahverkehr ostwestfalen GmbH, Münster (Westphalia)

A omnibusverkehr Franken GmbH (oVF), nuremberg

A oRn omnibusverkehr Rhein-nahe GmbH, Mainz

A RBo Regionalbus ostbayern GmbH, Regensburg

A Regional Bus Stuttgart GmbH RBS, Stuttgart

A Regionalbus Brunswick GmbH – RBB –, Brunswick

A Regionalverkehr Allgäu GmbH (RVA), oberstdorf

A Regionalverkehr Kurhessen GmbH (RKH), Kassel

A Regionalverkehr oberbayern Gesellschaft

mit beschränkter Haftung, Munich

A Rheinpfalzbus GmbH, ludwigshafen am Rhein

A RMV Rhein-Mosel Verkehrsgesellschaft mbH, Koblenz

A RVe Regionalverkehr euregio Maas-Rhein GmbH, Aachen

A RVn Regionalverkehr niederrhein GmbH, Wesel

A RVS Regionalbusverkehr Südwest GmbH, Karlsruhe

A Saar-pfalz-Bus GmbH, Saarbrücken

A Saar-pfalz-Mobil GmbH, Bexbach

A SBG SüdbadenBus GmbH, Freiburg im Breisgau

A Schenker (BAX) europe Holding GmbH, essen

A Schenker Aktiengesellschaft, essen

A SCHenKeR BeteIlIGunGS GmbH, Dortmund

A Schenker Dedicated Services Germany GmbH, essen

A Schenker Deutschland AG, Frankfurt am Main

A SCHenKeR InteRnAtIonAl AKtIenGeSellSCHAFt, essen

A Stinnes Beteiligungs-Verwaltungs GmbH, essen

A Stinnes Immobiliendienst AG & Co. KG, Mülheim an der Ruhr

A Stinnes logistics GmbH, essen

A Südwest Mobil GmbH, Mainz

A tFG transfracht Internationale Gesellschaft für kombinierten

Güterverkehr mbH, Frankfurt am Main

A tRAnSA Spedition GmbH, offenbach am Main

A uBB usedomer Bäderbahn GmbH, Heringsdorf

A Verkehrsgesellschaft mbH untermain – Vu –, Aschaffenburg

A Vorpommernbahn GmbH, Wolgast

A WB Westphalia Bus GmbH, Münster

A Weser-ems Busverkehr GmbH (WeB), Bremen

A Zentral-omnibusbahnhof Berlin GmbH, Berlin

A Zweite Kommanditgesellschaft Stinnes Immobiliendienst

AG & Co., Mülheim an der Ruhr

K


(41) List of shareholdings the list of shareholdings is set out on the following pages.

BreakDown of shareholDinGs of DB aG

(in accorDance with section 313 (2) hGB)

Subsidiary [ name and domicile ] Currency

Equity (TLC1))

Ownership (%)

DB Bahn Long -Distance

FuLLy COnSOLidaTEd

dB Bahn italia S.r.l., Verona/italy EuR 5,485 100.00

dB European Railservice GmbH, dortmund EuR –34 100.00

dB Fernverkehr aktiengesellschaft, Frankfurt am Main EuR 2,284,425 100.00

dB Reise & Touristik Suisse Sa, Basel/Switzerland CHF –906 100.00

aT EquiT y

alleo GmbH, Saarbrücken 2) EuR 223 50.00

RailLink B.V., amsterdam/the netherlands 3), 4) EuR 115 25.00

Railteam B.V., amsterdam/the netherlands 3), 4) EuR 61 25.00

Rheinalp GmbH, Freiburg im Breisgau 3), 4) EuR 116 50.00

DB Bahn RegionaL

FuLLy COnSOLidaTEd

autokraft GmbH, Kiel EuR 10,278 100.00

Bayern Express & P. Kühn Berlin GmbH, Berlin EuR 4,218 100.00

BBH BahnBus Hochstift GmbH, Paderborn EuR 2,419 100.00

BERLin LiniEn BuS Gesellschaft mit beschränkter Haftung, Berlin EuR 26 65.00

BRn Busverkehr Rhein-neckar GmbH, Ludwigshafen am Rhein EuR 13,897 100.00

BRS Busverkehr Ruhr-Sieg GmbH, Meschede EuR 4,829 100.00

Busverkehr Märkisch-Oderland GmbH, Strausberg EuR 5,860 51.17

Busverkehr Oder-Spree GmbH, Fürstenwalde EuR 3,637 51.17

BVO Busverkehr Ostwestfalen GmbH, Bielefeld EuR 12,363 100.00

BVR Busverkehr Rheinland GmbH, düsseldorf EuR 4,556 100.00

dB Busverkehr Hessen GmbH, Gießen EuR 2,442 100.00

dB Regio aktiengesellschaft, Frankfurt am Main EuR 1,920,583 100.00

dB Regio Bus Bayern GmbH, Coburg EuR 1,165 100.00

dB Regio Bus Ost GmbH, Potsdam EuR 26 100.00

dB Regionetz Verkehrs GmbH, Frankfurt am Main EuR 68,321 100.00

dB ZugBus Regionalverkehr alb-Bodensee GmbH (RaB), ulm EuR 26,325 100.00

Friedrich Müller Omnibusunternehmen GmbH, Schwäbisch Hall EuR 566 100.00

Haller Busbetrieb GmbH, Walsrode-Honerdingen EuR 369 100.00

Hanekamp Busreisen GmbH, Cloppenburg EuR 205 100.00

KOB GmbH, Oberthulba EuR 1,013 70.00

nVO nahverkehr Ostwestfalen GmbH, Münster (Westphalia) EuR 1,371 100.00

Omnibusverkehr Franken GmbH (OVF), nuremberg EuR 14,375 100.00

æ


Equity (TLC1))

Ownership (%)

ORn Omnibusverkehr Rhein-nahe GmbH, Mainz EuR 5,329 100.00

RBO Regionalbus Ostbayern GmbH, Regensburg EuR 10,760 100.00

Regional Bus Stuttgart GmbH RBS, Stuttgart EuR 17,392 100.00

Regionalbus Brunswick GmbH –RBB–, Brunswick EuR 7,186 100.00

Regionalverkehr allgäu GmbH (RVa), Oberstdorf EuR 3,040 70.00

Regionalverkehr dresden GmbH, dresden EuR 6,155 51.00

Regionalverkehr Kurhessen GmbH (RKH), Kassel EuR 11,931 100.00

Regionalverkehr Oberbayern Gesellschaft mit beschränkter Haftung, Munich EuR 12,269 100.00

RegioTram Betriebsgesellschaft mbH i. L., Kassel EuR 266 50.96

rhb rheinhunsrückbus GmbH, Simmern EuR 159 48.69

Rheinpfalzbus GmbH, Ludwigshafen am Rhein EuR 329 100.00

Rhein-Westerwald nahverkehr GmbH, Montabaur EuR 103 61.36

RMV Rhein-Mosel Verkehrsgesellschaft mbH, Koblenz EuR 9,942 74.90

RVE Regionalverkehr Euregio Maas-Rhein GmbH, aachen EuR 1,442 100.00

RVn Regionalverkehr niederrhein GmbH, Wesel EuR 610 100.00

RVS Regionalbusverkehr Südwest GmbH, Karlsruhe EuR 7,595 100.00

Saar-Pfalz-Bus GmbH, Saarbrücken EuR 9,654 100.00

Saar-Pfalz-Mobil GmbH, Bexbach EuR 470 100.00

S-Bahn Berlin GmbH, Berlin EuR 170,972 100.00

S-Bahn Hamburg GmbH, Hamburg EuR 62,238 100.00

SBG SüdbadenBus GmbH, Freiburg im Breisgau EuR 7,655 100.00

Südwest Mobil GmbH, Mainz EuR –73 100.00

Verkehrsgesellschaft mbH untermain –Vu–, aschaffenburg EuR 2,613 100.00

Vorpommernbahn GmbH, Wolgast EuR 8,476 100.00

WB Westphalia Bus GmbH, Münster EuR 6,069 100.00

Weser-Ems Busverkehr GmbH (WEB), Bremen EuR 10,439 100.00

Zentral-Omnibusbahnhof Berlin GmbH, Berlin EuR 414 100.00

aT EquiT y

“Steig ein” GmbH i. L., Kempten 3), 4) EuR 50 23.33

“ZOB” Zentral-Omnibus-Bahnhof Gesellschaft mit beschränkter Haftung, Bremen 3), 5) EuR 27 25.60

Bodensee-Oberschwaben Verkehrsverbund-gesellschaft mit beschränkter Haftung, Ravensburg 3), 4) EuR 163 25.31

Connect-Fahrplanauskunft GmbH, Hanover 3), 4) EuR 111 42.00

die linie GmbH, Kellinghusen 3), 4) EuR 1,144 25.00

FahrBus Ostalb GmbH, aalen 3), 4) EuR 202 49.90

Filsland Mobilitätsverbund GmbH, Göppingen 3), 4) EuR 59 30.00

FSn Fahrzeugservice neunkirchen GmbH, neunkirchen 3), 4) EuR 140 47.50

Hövelhofer Ortsbus GmbH (HOB), Rheda-Wiedenbrück 3), 4) EuR 26 50.00

æ

K



Equity (TLC1))

Ownership (%)

Kahlgrund-Verkehrs-Gesellschaft mit beschränkter Haftung, Schöllkrippen 3), 4) EuR 8,235 28.00

Kitzinger nahverkehrsgemeinschaft (KinG), Kitzingen EuR – 50.00

Kreisbahn aurich GmbH, aurich 2), 3) EuR 1,163 33.33

Main-Spessart-nahverkehrsgesellschaft mbH, Gemünden (Main) 3), 4) EuR 107 25.00

niedersachsentarif GmbH, Hanover 3), 4) EuR 54 8.33

nSH nahverkehr Schleswig-Holstein GmbH, Kiel 3), 6) EuR 71 46.90

OWL Verkehr GmbH, Bielefeld 3), 4) EuR 60 30.43

RBP Regionalbusverkehr Passau Land GmbH, Bad Füssing 3), 4) EuR 75 33.33

Regionalverkehr Bayerisch Schwaben GmbH (RBS) i. L., augsburg 3), 5) EuR 118 50.00

Regio-Verkehrsverbund Freiburg GmbH (RVF), Freiburg 3), 4) EuR 419 45.00

Rhein-nahe nahverkehrsverbund GmbH, ingelheim am Rhein 3), 4) EuR 124 38.33

Saarländische nahverkehrs-Service GmbH, Saarbrücken 3), 4) EuR 50 41.67

stadtbus Ravensburg Weingarten GmbH, Ravensburg 3), 4) EuR 25 45.20

TGO – Tarifverbund Ortenau GmbH, Offenburg 3), 4) EuR 240 48.50

unternehmensgesellschaft Verkehrsverbund Rhein-neckar GmbH (uRn GmbH), Mannheim 3), 4) EuR 238 30.91

uVW unternehmensverbund Westpfalz GmbH i. L., Kaiserslautern 3), 4) EuR 47 61.67

Verkehrsgemeinschaft aalen GmbH, aalen 3), 4) EuR 70 26.67

Verkehrsgemeinschaft Mittelthüringen GmbH (VMT), Erfurt 3), 4) EuR 69 16.67

Verkehrsgemeinschaft Schwäbisch Gmünd GmbH (VSG) i. L., Schwäbisch Gmünd 3), 5) EuR 26 25.00

Verkehrsgesellschaft Landkreis nienburg mbH (VLn), nienburg/Weser 3), 4) EuR 26 47.00

VerkehrsGesellschaft Main-Tauber mbH (VGMT), Lauda-Königshofen 3), 5) EuR 50 42.19

Verkehrsunternehmen Hegau-Bodensee Verbund GmbH (VHB), Constance 3), 4) EuR 30 34.00

Verkehrsunternehmens-Verbund Mainfranken GmbH - VVM, Würzburg 3), 4) EuR 28 18.64

Verkehrsverbund Großraum nuremberg GmbH (VGn), nuremberg 2), 3) EuR 52 26.92

Verkehrsverbund neckar-alb-donau GmbH (naldo), Hechingen 3), 4) EuR 40 21.00

Verkehrsverbund Schwarzwald-Baar GmbH (VSB), Villingen-Schwenningen 3), 6) EuR 17 45.00

Verkehrsverbund Süd-niedersachsen GmbH (VSn), Göttingen 3), 5) EuR 85 33.08

VGC Verkehrsgesellschaft Bäderkreis Calw mbH, Calw 3), 4) EuR 445 32.50

VHn Verkehrsholding nord GmbH & Co. KG, Schleswig 3), 4) EuR 720 20.00

æ Subsidiary [ name and domicile ] Currency

Equity (TLC1))

Ownership (%)

VHn Verwaltungsgesellschaft mbH, Schleswig 3), 4) EuR 617 20.00

VMS Verkehrs-Management und Service GmbH, Trier 2), 3) EuR 51 38.46

Völklinger Verkehrsgesellschaft mbH, Völklingen 3), 4) EuR 217 25.50

WnS Westpfälzische nahverkehrs-Service GmbH, Kaiserslautern 3), 4) EuR 269 45.00

WTV Waldshuter Tarifverbund GmbH, Waldshut-Tiengen 3), 4) EuR 96 40.00

aT COST

Regio Verkehrsverbund Lörrach GmbH (RVL), Lörrach 3), 4) EuR 179 54.00

Verkehrsverbund Rottweil GmbH (VVR), Rottweil 3), 4) EuR 94 70.20

vgf Verkehrs-Gemeinschaft Landkreis Freudenstadt GmbH, Waldachtal 3), 4) EuR 154 51.92

DB aRRiva

FuLLy COnSOLidaTEd

a & T Motor Retailing Limited, Sunderland/Great Britain GBP 1,522 100.00

aCTiJOVEn COnSuLTinG & TRaVELLinG s.l., Madrid/Spain EuR 560 100.00

alliance Rail Holdings Ltd, york/Great Britain GBP –1,115 75.10

alliance Rail Management Ltd, york/Great Britain GBP 0 75.10

ambuline Limited, Birmingham/Great Britain GBP 1,970 100.00

ambuline Training Limited, Birmingham/Great Britain GBP 5 100.00

aPS (Leasing) Ltd, Sunderland/Great Britain GBP 117,781 100.00

arriva (2007) Limited, Sunderland/Great Britain GBP 393,832 100.00

arriva abbey Line Limited, Sunderland/Great Britain GBP 0 100.00

arriva achterhoek – Rivierenland BV, Heerenveen/the netherlands EuR 5,133 100.00

arriva Beheer nV, Heerenveen/the netherlands EuR 3,998 100.00

arriva Brabant BV, Heerenveen/the netherlands EuR 1,140 100.00

arriva Bus & Coach Holdings Limited, Sunderland/Great Britain GBP 21,250 100.00

arriva Bus and Coach Finance Ltd, Sunderland/Great Britain GBP 2,919 100.00

arriva Bus and Coach Ltd, Sunderland/Great Britain GBP 20,640 100.00

arriva Bus and Coach Rental (4) Ltd, Sunderland/Great Britain GBP –147 100.00

arriva Bus Transport Polska Sp. z o.o., Warsaw/Poland PLn 4,594 100.00

arriva Busfleet nV, Heerenveen/the netherlands EuR 10,942 100.00

arriva Colchester Limited, Sunderland/Great Britain GBP 0 100.00

æ

K



Equity (TLC1))

Ownership (%)

arriva Coöperatie W.a., Heerenveen/the netherlands EuR 690,518 100.00

arriva CR s.r.o., Prague/Czech Republic CZK 112 100.00

arriva Crossrail Limited, Sunderland/Great Britain GBP 0 100.00

arriva Croydon & north Surrey Limited, Sunderland/Great Britain GBP 0 100.00

arriva Cymru Limited, Sunderland/Great Britain GBP 36,469 100.00

arriva danmark a/S, Kastrup/denmark dKK 1,355,108 100.00

arriva daV BV, Heerenveen/the netherlands EuR 3,335 100.00

arriva derby Limited, Sunderland/Great Britain GBP 8,041 100.00

arriva dLR Limited, Sunderland/Great Britain GBP 0 100.00

arriva dolenjska in Primorska, druzba za prevoz potnikov, d.d., Koper/Slovenia EuR 4,672 100.00

arriva durham County Limited, Sunderland/Great Britain GBP 8,005 100.00

arriva East Herts & Essex Ltd, Sunderland/Great Britain GBP 1,140 100.00

arriva Europe GmbH, Berlin EuR 133,558 100.00

arriva Finance Holding BV, Heerenveen/the netherlands EuR 68,746 100.00

arriva Finance Lease Limited, Sunderland/Great Britain GBP 7,035 100.00

arriva Findiv Limited, Sunderland/Great Britain GBP 259,966 100.00

arriva Guildford & West Surrey Limited, Sunderland/Great Britain GBP 3,177 100.00

arriva Holding Česká Republika s.r.o., Prague/Czech Republic CZK 612,685 100.00

arriva Hongarije Holding BV, Heerenveen/the netherlands EuR 33,468 100.00

arriva Hrvatska d.o.o., Osijek/Croatia HRK 53,997 100.00

arriva Hungary Zrt., Budapest/Hungary HuF 3,641,991 100.00

arriva HWGO BV, Heerenveen/the netherlands EuR –1,257 100.00

arriva insurance a/S, Kastrup/denmark dKK 70,250 100.00

arriva insurance Company (Gibraltar) Limited, Gibraltar/Gibraltar GBP 4,119 100.00

arriva international (2) Limited, Sunderland/Great Britain GBP 18 100.00

arriva international (7) Limited, Sunderland/Great Britain GBP 212,007 100.00

arriva international (northern Europe) Limited, Sunderland/Great Britain EuR 355,058 100.00

arriva international (Southern Europe) Limited, Sunderland/Great Britain EuR 355,058 100.00

arriva international Finance Limited, Sunderland/Great Britain EuR 297,236 100.00

arriva international Limited, Sunderland/Great Britain EuR 401,587 100.00

arriva international Trains (Leasing) Limited, Sunderland/Great Britain EuR 28,225 100.00

aRRiVa inVESTiMEnTOS SGPS, Sa, almada/Portugal EuR 216,877 100.00


Equity (TLC1))

Ownership (%)

arriva italia Rail S.R.L., Milan/italy EuR 322 100.00

arriva italia s.r.l., Milan/italy EuR 190,373 100.00

arriva Kent & Surrey Limited, Sunderland/Great Britain GBP 77,588 100.00

arriva Kent Thameside Limited, Sunderland/Great Britain GBP 52,934 100.00

aRRiVa LiSBOa TRanSPORTES Sa, almada/Portugal EuR 6 100.00

arriva LiTaS d.o.o. Pozarevac, Požarevac/Serbia RSd 1,062,457 100.00

arriva Liverpool Limited, Sunderland/Great Britain GBP 716 100.00

arriva London Limited, Sunderland/Great Britain GBP 0 100.00

aRRiVa LOndOn nORTH EaST LTd, Sunderland/Great Britain GBP 5,752 100.00

aRRiVa LOndOn nORTH LTd, Sunderland/Great Britain GBP 53,627 100.00

aRRiVa LOndOn SOuTH LTd, Sunderland/Great Britain GBP 38,171 100.00

arriva LuV doo Beograd (Palilula), Belgrade/Serbia RSd 286,086 100.00

arriva Malta Finance & investments Limited, Valletta/Malta EuR 528,691 100.00

arriva Malta Holdings Limited, Valletta/Malta EuR 520,079 100.00

arriva Malta Limited, qormi/Malta EuR 0 100.00

arriva Manchester Limited, Sunderland/Great Britain GBP –730 100.00

arriva Medway Towns Limited, Sunderland/Great Britain GBP 6,671 100.00

arriva Merseyside Limited, Sunderland/Great Britain GBP 135,231 100.00

arriva Michalovce, a.s., Michalovce/Slovakia EuR 10,319 60.14

arriva Midlands Limited, Sunderland/Great Britain GBP 21,600 100.00

arriva Midlands north Limited, Sunderland/Great Britain GBP 54,180 100.00

arriva Morava a.s., Ostrava/Czech Republic CZK 1,443,348 100.00

arriva Motor Holdings Limited, Sunderland/Great Britain GBP 140,863 100.00

arriva Multimodaal BV, Heerenveen/the netherlands EuR 18 100.00

arriva night Trains Limited, Sunderland/Great Britain GBP 0 100.00

arriva nitra a.s., nitra/Slovakia EuR 16,049 60.48

arriva noroeste s.l., Ferrol/Spain EuR 13,323 100.00

arriva north East Limited, Sunderland/Great Britain GBP 6,319 100.00

arriva north West Limited, Sunderland/Great Britain GBP –16,246 100.00

arriva northumbria Limited, Sunderland/Great Britain GBP 11,819 100.00

arriva nove Zamky, a.s., nove Zamky/Slovakia EuR 8,563 60.36

arriva Openbaar Vervoer nV, Heerenveen/the netherlands EuR 109,221 100.00

æ

K



Equity (TLC1))

Ownership (%)

arriva Östgötapendeln aB, Stockholm/Sweden SEK 77,987 100.00

arriva Passenger Services (international) Limited, Sunderland/Great Britain GBP 73 100.00

arriva Passenger Services Limited, Sunderland/Great Britain GBP 334,808 100.00

arriva Passenger Services Pension Trustees Limited, Sunderland/Great Britain GBP 0 100.00

arriva Personenvervoer nederland BV, Heerenveen/the netherlands EuR 226,757 100.00

arriva Plc, Sunderland/Great Britain GBP 605,502 100.00

arriva Poland Holding B.V., Heerenveen/the netherlands EuR 6,103 100.00

arriva Polska Sp. z o.o., Warsaw/Poland PLn 33,702 100.00

aRRiVa PORTuGaL – TRanSPORTES Lda, Guimaraes/Portugal EuR 11,564 100.00

arriva Praha s.r.o., Prague/Czech Republic CZK 652,604 100.00

arriva RP Sp. z o.o., Warsaw/Poland PLn 4,905 100.00

arriva Scotland West Limited, inchinnan/Great Britain GBP 2,021 100.00

arriva Scotrail Limited, Sunderland/Great Britain GBP 0 100.00

arriva Service s.r.o., Komárno/Slovakia EuR 25,663 100.00

arriva Services a.s., Králův dvůr/Czech Republic CZK 65,982 100.00

arriva Southend Limited, Sunderland/Great Britain GBP 7,804 100.00

arriva Southern Counties Limited, Sunderland/Great Britain GBP 722 100.00

arriva Spolka z o.o., Toruń/Poland PLn 139,678 99.57

arriva Stajerska, druzba za prevoz potnikov, d.d., Maribor/Slovenia EuR 2,381 75.90

arriva Sverige aB, Helsingborg/Sweden SEK 163,850 100.00

arriva Tag aB, Helsingborg/Sweden SEK 5,033 100.00

arriva Techniek BV, Heerenveen/the netherlands EuR 532 100.00

arriva Tees & district Limited, Sunderland/Great Britain GBP 957 100.00

arriva Teesside Limited, Sunderland/Great Britain GBP 749 100.00

arriva Teplice s.r.o., Teplice/Czech Republic CZK 137,157 100.00

arriva the Shires Limited, Sunderland/Great Britain GBP 55,158 100.00

arriva Tog a/S, Kastrup/denmark dKK 321,569 100.00

arriva Touring BV, Heerenveen/the netherlands EuR 2,414 100.00

arriva Trains (Poland) Limited, Sunderland/Great Britain EuR 710 100.00

arriva Trains Merseyside Limited, Sunderland/Great Britain GBP 0 100.00

arriva Trains northern Limited, Sunderland/Great Britain GBP 0 100.00

arriva Trains Wales Limited, Sunderland/Great Britain GBP 59,311 100.00


Equity (TLC1))

Ownership (%)

arriva Transport Česká Republika a.s., Prague/Czech Republic CZK 1,688,049 100.00

arriva Transport Services s.r.o., nitra/Slovakia EuR 10,819 100.00

arriva Transport Solutions Limited, Sunderland/Great Britain GBP 5,254 100.00

aRRiVa TRanSPORTES da MaRGEM SuL, Sa, almada/Portugal EuR 82,276 100.00

arriva Trustee Company Limited, Sunderland/Great Britain GBP 0 100.00

arriva uK Trains Limited, Sunderland/Great Britain GBP 154,979 100.00

arriva vlaky s.r.o., Prague/Czech Republic CZK –1,764 100.00

arriva Východní Čechy a.s., Chrudim/Czech Republic CZK 588,410 100.00

arriva Wadden BV, Heerenveen/the netherlands EuR 2,980 100.00

arriva Waterland Rivierenland BV, Heerenveen/the netherlands EuR –139 100.00

arriva West Sussex Limited, Sunderland/Great Britain GBP 4,331 100.00

arriva yorkshire Ltd, Sunderland/Great Britain GBP 36,900 100.00

arriva yorkshire north Ltd, Sunderland/Great Britain GBP 1,283 100.00

arriva yorkshire South Ltd, Sunderland/Great Britain GBP 0 100.00

arriva yorkshire West Ltd, Sunderland/Great Britain GBP 5,282 100.00

arriva Zuid Europa Holding BV, Heerenveen/the netherlands EuR 510,184 100.00

at Seat Catering (2003) Limited, Sunderland/Great Britain GBP 15 100.00

auTOBuSES GREiSi S.L., Madrid/Spain EuR 355 100.00

auTOCaRES FRay ESCOBa SLu, Madrid/Spain EuR 238 100.00

autocares Mallorca, s.l., alcudia/Spain EuR 2,169 100.00

autoservizi F.V.G. S.P.a. - SaF, udine/italy EuR 59,763 60.00

B.B. Motors (Bristol) Limited, Sunderland/Great Britain GBP 0 100.00

Bergamo Trasporti Est S.c.a.r.l., Bergamo/italy EuR 10 93.67

Bergamo Trasporti Ovest S.c.a.r.l., Bergamo/italy EuR 10 65.76

BOSaK BuS spol. s r.o., dobris/Czech Republic CZK 65,236 100.00

Botniatåg aB, Stockholm/Sweden SEK –309,386 60.00

British Bus (Properties) Limited, Sunderland/Great Britain GBP 75,822 100.00

British Bus Limited, Sunderland/Great Britain GBP 8,090 100.00

Broadwood Finance Company Limited, Sunderland/Great Britain GBP 32,181 100.00

Bus nort Balear s.l., alcudia/Spain EuR 574 100.00

BuSdan 29 apS, Kastrup/denmark dKK 26,012 100.00

BuSdan 29.1 apS, Kastrup/denmark dKK 45,723 100.00




æ

K



Equity (TLC1))

Ownership (%)

Busdan 32.1 a/S, Kastrup/denmark dKK 235,434 100.00



Centrebus Holdings Limited, Leicester/Great Britain GBP 325 100.00

CERTuS Transport družba za prevoz potnikov d.o.o., Maribor/Slovenia EuR 8 100.00

Classic Coaches (Continental) Limited, Sunderland/Great Britain GBP 483 100.00

Cooperativa Bergamasca Trasporti a.r.l. i. L., Bergamo/italy EuR 1 80.63

dB Regio Tyne and Wear Limited, London/Great Britain GBP –2,195 100.00

dB Regio uK Limited, London/Great Britain GBP –812 100.00

EMPRESa dE BLaS y Cia S.L., Madrid/Spain EuR 133,221 100.00

ESFERa BuS SLu, Madrid/Spain EuR 2,416 100.00

ESFERa uniVERSaL SLu, Madrid/Spain EuR 25,884 100.00

Estacion de autobuses de Ferrol S.a., Ferrol/Spain EuR 341 80.14

Eurocare Travel Ltd, Sunderland/Great Britain GBP 343 100.00

Flight delay Services Limited, Sunderland/Great Britain GBP 0 100.00

GCRC Holdings Limited, Bristol/Great Britain GBP 195 100.00

Grand Central Railway Company Limited, Bristol/Great Britain GBP 22,153 100.00

Great north Eastern Railway Company Ltd, york/Great Britain GBP 0 75.10

Great north Western Railway Company Ltd, york/Great Britain GBP 0 75.10

Greenline Travel Ltd, Sunderland/Great Britain GBP 8 100.00

JTL 2004 apS, Kastrup/denmark dKK 43,324 100.00

JTL 2009 apS, Kastrup/denmark dKK 32,523 100.00

Lecco Trasporti S.c.a.r.l., Lecco/italy EuR 10 56.94

London and north Western Railway Company Limited, Sunderland/Great Britain GBP 3,394 100.00

London Pride Sightseeing Ltd, Sunderland/Great Britain GBP 4,681 100.00

Londonlinks Buses Limited, Sunderland/Great Britain GBP 0 100.00

M40 Trains Limited, London/Great Britain GBP 43,344 100.00

Meadowhall Limited, Sunderland/Great Britain GBP 52 100.00

Merseyrail Electrics Limited, Sunderland/Great Britain GBP 0 100.00

Merseyside Transport Limited, Sunderland/Great Britain GBP 0 100.00

Midland Red north Limited, Sunderland/Great Britain GBP 0 100.00

MK Metro Ltd, Sunderland/Great Britain GBP 9,355 100.00

Moor-dale Coaches Limited, Sunderland/Great Britain GBP 500 100.00

MTL Services Limited, Sunderland/Great Britain GBP 29,464 100.00

nETOSEC SLu, Madrid/Spain EuR 237 100.00


Equity (TLC1))

Ownership (%)

network Colchester Limited, Sunderland/Great Britain GBP 335 100.00

new Enterprise Coaches (Tonbridge) Limited, Sunderland/Great Britain GBP –245 100.00

nitravel s.r.o., nitra/Slovakia EuR 238 60.48

northern Spirit Limited, Sunderland/Great Britain GBP 0 100.00

northern Spirit Trains Limited, Sunderland/Great Britain GBP 0 100.00

northern Spirit Transport Limited, Sunderland/Great Britain GBP 0 100.00

nV Personeel de noord-Westhoek, Heerenveen/the netherlands EuR 421 100.00

OFJ Ground Services Limited, Sunderland/Great Britain GBP 102 100.00

OSnadO spol. s.r.o., Svoboda nad Úpou/Czech Republic CZK 42,581 100.00

Panturist dioničko društvo za prijevoz putnika i tutizam d.d., Osijek/Croatia HRK 24,578 99.69

Pickerings Transport Services Limited, Sunderland/Great Britain GBP 1,032 100.00

Premier Buses Ltd, Sunderland/Great Britain GBP 2,102 100.00

PROBO BuS a.s., Králův dvůr/Czech Republic CZK 195,030 100.00

PT REaL, spol. s r.o., Králův dvůr/Czech Republic CZK 47,285 100.00

RdS bus s.r.o., Babylon/Czech Republic CZK 1,020 100.00

RiViERa TRaSPORTi LinEa S.P.a., imperia/italy EuR 591 80.00

S.a.B. auTOSERViZi S.R.L., Bergamo/italy EuR 34,596 100.00

S.a.L. Servizi automobilistici Lecchesi S.R.L., Lecco/italy EuR 7,448 100.00

S.i.a. Società italiana autoservizi S.p.a., Brescia/italy EuR 43,170 100.00

SaB Piemonte S.r.l. a socio unico, Grugliasco (TO)/italy EuR 6,483 100.00

SadEM – SOCiETÀ PER aZiOni, Turin/italy EuR 19,973 100.00

Saia TRaSPORTi S.P.a., Brescia/italy EuR 22,202 100.00

SERViCiOS inTEGRaLES BuS & TRuCK S.a., Madrid/Spain EuR 451 100.00

Stevensons of uttoxeter Limited, Sunderland/Great Britain GBP 226 100.00

Teamdeck Limited, Leicester/Great Britain GBP 2,429 100.00

Tellings Golden Miller Limited, Sunderland/Great Britain GBP 657 100.00

TGM (Holdings) Limited, Sunderland/Great Britain GBP 7,873 100.00

TGM Group Limited, Sunderland/Great Britain GBP 10,659 100.00

The Chiltern Railway Company Limited, London/Great Britain GBP –38,074 100.00

The Original London Sightseeing Tour Ltd, Sunderland/Great Britain GBP 1,639 100.00

Transcare Solutions Limited, Sunderland/Great Britain GBP 16 100.00

TRanSCEnTRuM bus s.r.o., Kosmonosy/Czech Republic CZK 72,198 100.00

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Equity (TLC1))

Ownership (%)

Transportes Sul do Tejo S.a., almada/Portugal EuR 5,702 100.00

TRanSuRBanOS dE GuiMaRaES TP, Lda, Guimaraes/Portugal EuR 13 100.00

Trasporti Brescia nord S.c.a.r.l., Brescia/italy EuR 100 92.00

Trasporti Brescia Sud S.c.a.r.l., Brescia/italy EuR 100 93.00

TuF-TRanSPORTES uRBanOS dE FaMaLiCaO, Lda, Vila nova de Famalicao/Portugal EuR –380 66.67

uCPLuS a/S, Kastrup/denmark dKK 26,909 100.00

united automobile Services Limited, Sunderland/Great Britain GBP 13,085 100.00

White Rose Bus Company Limited, Leicester/Great Britain GBP –996 100.00

XC Trains Limited, Sunderland/Great Britain GBP 75,839 100.00

yorkshire Bus Group Ltd, Sunderland/Great Britain GBP 38,544 100.00

yorkshire Tiger Limited, Leicester/Great Britain GBP 2,074 100.00

Zeta automotive Limited, Bicester/Great Britain GBP 4,543 51.00

aT EquiT y

aquabus BV, Heerenveen/the netherlands 2), 3) EuR 4,558 50.00

Barraqueiro SGPS Sa, Lisbon/Portugal 2) EuR 180,743 31.50

Bergamo Trasporti Sud Scarl, Bergamo/italy 3), 4) EuR 10 25.57

Bus Point Srl, Lallio (BG)/italy 3), 4) EuR 151 30.00

Estacion autobuses de Pobra, Ferrol/Spain 6) EuR 9 33.33

Explotacion Gasoleos de la Coruna, s.l., Ferrol/Spain 3), 4) EuR 83 40.00

EXTRa.TO S.c.a.r.l., Turin/italy 3), 5) EuR 100 30.01

Garda Trasporti Scarl, desenzano del Garda (BS)/italy 3), 4) EuR 20 23.00

Great Park Bus Company Limited, Sunderland/Great Britain GBP – 50.00

intercambiador de Transportes Principe PiO S.a., Madrid/Spain 2), 3) EuR 9,074 30.00

KM S.P.a., Cremona/italy 2) EuR 4,912 49.00

London Overground Rail Operations Limited, London/Great Britain 3) GBP 3,224 50.00

Omnibus partecipazioni S.R.L., Milan/italy 2), 3) EuR 7,244 50.00

Prometro S.a., Porto/Portugal 3), 4) EuR 3,831 20.00

PTi (South East) Limited, Sunderland/Great Britain 10) GBP 238 20.00

Rodinform – informatica aplicada aos Transportes, Sa, Lisbon/Portugal 2), 3) EuR 27 20.00

S.T.i. Servizi Transporti interregionali Spa, Cordenons Pn/italy 3), 5) EuR 962 9.81

TPL FVG Scarl s.r.l., Gorizia/italy 2), 3) EuR 83 15.00

Trieste Trasporti S.P.a., Trieste/italy 2), 3) EuR 44,459 39.94

union Ferrolana de Transportes S.a., Ferrol/Spain 3), 6) EuR 2 50.00

Viajeros del Eo, Ferrol/Spain 3), 7) EuR 11 50.00

VT-aRRiVa Személyszállító és Szolgáltató Kft., Székesfehérvár/Hungary 2) HuF 3,329,670 49.91


Equity (TLC1))

Ownership (%)

WSMR (Holdings) Limited, London/Great Britain 3), 4) GBP 0 50.00

DB schenkeR R aiL

FuLLy COnSOLidaTEd

aTG autotransportlogistic Sp. z o. o., Malaszewicze/Poland PLn 8,286 100.00

autologistic Poland Sp. z o. o., Tychy/Poland PLn 2,607 51.00

auxiliar Logística de Vehiculos S.L., Saragossa/Spain EuR 83 65.28

axiom Rail (Cambridge) Limited, doncaster/Great Britain GBP 677 100.00

axiom Rail (Stoke) Limited, doncaster/Great Britain GBP –5,854 100.00

axiom Rail Components Limited, doncaster/Great Britain GBP –2,117 100.00

axiom Rail SaS, Paris/France EuR –1,083 100.00

Boreal & austral Railfreight Ltd, doncaster/Great Britain GBP 67,500 100.00

Compañía aragonesa de Portacoches S.a., Saragossa/Spain EuR 13,312 65.28

Container Szállítmányátrakó Állomás Kft., Györ/Hungary EuR 106 100.00

Container-Terminal Púchov s.r.o., Púchov/Slovakia EuR 97 100.00

Corridor Operations nMBS/SnCB dB Schenker Rail n.V., Brussels/Belgium EuR 1,562 51.00

dB intermodal Services GmbH, Mainz EuR 3,786 100.00

dB PORT SZCZECin Sp. z o.o., Szczecin/Poland PLn 12,063 96.80

dB Schenker BTT GmbH, Mainz EuR 1,825 100.00

dB Schenker nieten GmbH, Freilassing EuR 3,856 100.00

dB Schenker Rail (uK) Holdings Limited, doncaster/Great Britain GBP 195,441 100.00

dB Schenker Rail (uK) Limited, doncaster/Great Britain GBP 112,408 100.00

dB Schenker Rail aktiengesellschaft, Mainz EuR 665,706 100.00

dB Schenker Rail automotive GmbH, Kelsterbach EuR 11,771 100.00

dB Schenker Rail Bulgaria EOOd, Sofia/Bulgaria BGn 3,930 100.00

dB Schenker Rail Corridor Operations GmbH, Mainz EuR 47 100.00

dB Schenker Rail danmark Services a/S, Taastrup/denmark dKK 895 100.00

dB Schenker Rail deutschland aktiengesellschaft, Mainz EuR 50 100.00

dB Schenker Rail Hungaria Kft., Györ/Hungary HuF 691,508 100.00

dB Schenker Rail information Services Limited, doncaster/Great Britain GBP 804 100.00

dB Schenker Rail international Limited, doncaster/Great Britain GBP –15,249 100.00

dB Schenker Rail italia S.r.L., alessandria/italy EuR 13,709 100.00

dB Schenker Rail italia Services S.r.l., Milan/italy EuR 1,009 100.00

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Equity (TLC1))

Ownership (%)

dB Schenker Rail nederland n. V., utrecht/the netherlands EuR 3,804 100.00

dB Schenker Rail Polska S.a., Zabrze/Poland PLn 522,359 100.00

dB Schenker Rail Romania S.R.L., Timişoara/Romania ROn 13,305 100.00

dB Schenker Rail Scandinavia a/S, Taastrup/denmark dKK 347,326 51.00

dB Schenker Rail Switzerland GmbH, Opfikon/Switzerland CHF 1,148 100.00

dB Schenker Rail Spedkol Sp. z o.o., Kędzierzyn-Koźle/Poland PLn 30,650 100.00

deutsche TRanSFESa GmbH internationale Eisenbahn-Spezial-Transporte, Kehl am Rhein EuR 1,872 77.33

doker-Port Sp. z o.o., Szczecin/Poland PLn –179 60.50

duSS italia Terminal s.r.l., Verona/italy EuR 93 80.00

East & West Railway Ltd, doncaster/Great Britain GBP 0 100.00

Euro Cargo Rail SaS, Paris/France EuR 90,192 100.00

Guga B.V., amsterdam/the netherlands EuR –77 77.33

infra Silesia S.a., Rybnik/Poland PLn 4,825 100.00

KombiTerminal Burghausen GmbH, Mainz EuR 299 67.62

LGP Lagerhausgesellschaft Pfullendorf mbH i. L., Pfullendorf EuR 182 49.08

Loadhaul Ltd, doncaster/Great Britain GBP 16,131 100.00

Locomotive 6667 Ltd, doncaster/Great Britain GBP 0 100.00

Logística Sanmival S.L., Burgos/Spain EuR 461 57.99

Mainline Freight Ltd, doncaster/Great Britain GBP 21,266 100.00

Marcroft Holdings Ltd, doncaster/Great Britain GBP –3,048 100.00

MdL distribución y Logistica S.a., Madrid/Spain EuR 13,186 77.33

Mitteldeutsche Eisenbahn GmbH, Schkopau EuR 1,239 80.00

new Locomotive Finance Ltd, doncaster/Great Britain GBP 0 100.00

nordCargo S.r.l, Milan/italy EuR 10,778 60.00

OOO Railion Russija Services, Moscow/Russia RuB 81,024 100.00

Rail Express Systems Ltd, doncaster/Great Britain GBP 30,012 100.00

Rail Service Center Rotterdam B. V., Rotterdam/the netherlands EuR 5,042 100.00

Rail Terminal Services Limited, doncaster/Great Britain GBP –2,073 100.00

Railway investments Ltd, doncaster/Great Britain GBP –200 100.00

RBH Logistics GmbH, Gladbeck EuR 28,242 100.00

RES december Ltd, doncaster/Great Britain GBP 16,048 100.00

TFG Transfracht internationale Gesellschaft für kombinierten Güterverkehr mbH, Frankfurt am Main EuR –28 100.00

TGP Terminalgesellschaft Pfullendorf mbH, Pfullendorf EuR 322 75.50

Transervi France S.a.S., Cerbère/France EuR 458 77.33

Transervi S.a., Madrid/Spain EuR 3,830 77.33

Transfesa Benelux S.P.R.L., Genk/Belgium EuR 683 77.33


Equity (TLC1))

Ownership (%)

Transfesa France SaS, Gennevilliers/France EuR 2,264 77.33

Transfesa Maritimo Terrestre, S.L., Cantabria/Spain EuR 44 77.33

Transfesa Portugal Lda., Lisbon/Portugal EuR 321 77.33

Transfesa Rail S.a., Madrid/Spain EuR 716 77.33

Transfesa uK Ltd., Rainham (Essex)/Great Britain GBP 461 77.33

Transportes Ferroviarios Especiales S.a., Madrid/Spain EuR 189,580 77.33

aT EquiT y

“Cross-Baltic Terminaloperators” Sp. z o. o. i.L., Szczecin/Poland PLn – 48.40

aTn auto Terminal neuss GmbH & Co. KG, neuss 3), 4) EuR 5,330 50.00

autoterminal Slask Logistic Sp. z o. o., dąbrowa Górnicza/Poland 2) PLn 4,031 50.00

autotrax Limited, Lufton/Great Britain 3), 4) GBP 1,616 24.00

baymodal Bamberg GmbH, Bamberg 3), 4) EuR 168 25.10

BLS Cargo aG, Bern/Switzerland 3), 4) CHF 88,927 45.00

Container Terminal dortmund GmbH, dortmund 3), 4) EuR 3,977 30.00

CTS Container-Terminal GmbH Rhein-See-Land-Service, Cologne 3) EuR 1,643 22.50

daP Barging B.V., Rotterdam/the netherlands 3), 4) EuR 2,029 55.00

dCH düsseldorfer Container-Hafen GmbH, düsseldorf 3) EuR 434 51.00

doerpener umschlaggesellschaft für den kombinierten Verkehr mbH (duK), dörpen 3), 4) EuR 4,483 35.00

Etihad Rail dB Operations LLC, abu dhabi/united arab Emirates 2), 3) aEd 300 49.00

Hansa Rail GmbH i.L., Frankfurt am Main 6) EuR 222 50.00

Hispanauto-Empresas agrupadas a.E.i.E. ©, Madrid/Spain 2) EuR 0 58.04

inTERCOnTainER – inTERFRiGO Sa i.L., Brussels/Belgium 3), 9) EuR –5,874 36.20

intermodal Sea Solutions, S.L., Orejo-Cantabria/Spain EuR – 24.75

Kombiverkehr deutsche Gesellschaft für kombinierten Güterverkehr mbH & Co. Kommanditgesellschaft, Frankfurt am Main 3), 4) EuR 16,759 50.00

Lokomotion Gesellschaft für Schienentraktion mbH, Munich 3), 4) EuR 8,076 30.00

OFP La Rochelle Maritime Rail Services SaS, La Rochelle/France EuR 3 24.90

Omfesa Logistica S.a., Madrid/Spain 2) EuR 280 38.66

OPTiMOdaL nEdERLand B.V., Rotterdam/the netherlands 3), 5) EuR 399 24.34

PKV Planungsgesellschaft kombinierter Verkehr duisburg mbH, duisburg 2), 3) EuR 1,361 50.00

Pool ibérico Ferroviario a.i.E., Madrid/Spain 2) EuR 0 9.02

Railmax B.V., nijmegen/the netherlands 2) EuR 88 38.66

Railmax C.V., nijmegen/the netherlands 2) EuR 0 38.28

ŚLĄSKiE CEnTRuM LOGiSTyKi S.a., Gleiwitz/Poland 2), 3) PLn 47,131 21.86

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Equity (TLC1))

Ownership (%)

Sociedad de Estudios y Explotacion Material auxiliar de Transportes, S.a. (“SEMaT”), Madrid/Spain 2) EuR 4,377 48.56

Stifa S.a. i. L., Malveira/Portugal 2) EuR –85 38.66

Terminal Singen TSG GmbH, Singen 3), 4) EuR 549 50.00

Trans-Eurasia Logistics GmbH, Berlin 3), 4) EuR 1,237 40.00

Xrail S.a., Brussels/Belgium 3), 4) EuR 308 32.00

ZaO Eurasia Rail Logistics i. L., Moscow/Russia 3), 8) RuB 1,675 34.90

DB schenkeR Logistics

FuLLy COnSOLidaTEd

air Terminal Handling S.a., Tremblay en France/France EuR 1,621 100.00

aLB automotive Logistica LTda, Juiz de Fora – MG/Brazil BRL 3,101 51.00

anterist + Schneider Zeebrugge B.V., Zeebrugge/Belgium EuR 1,175 100.00

aS Schenker, Tallinn/Estonia EuR 10,987 100.00

aSiMEX anterist + Schneider import-Export SaS, Stiring-Wendel/France EuR 562 100.00

aTLanTiquE EXPRESS SaS, Montaigu Cedex/France EuR 308 100.00

BaX Global (aust.) Pty Ltd., alexandria/australia aud 190 100.00

BaX Global (Malaysia) Sdn. Bhd., Petaling Jaya/Malaysia MyR –3,102 100.00

BaX Global (Pty.) Ltd., Johannesburg/South africa ZaR 68 100.00

BaX Global (Thailand) Limited, Bangkok/Thailand THB 391,445 100.00

BaX Global (uK) Limited, London/Great Britain GBP 7,979 100.00

BaX Global Holdings Pty Ltd., alexandria/australia aud 0 100.00

BaX Global inc., norfolk/uSa uSd 79,913 100.00

BaX Global Limited, London/Great Britain GBP 2,738 100.00

BaX Global Logistics (Shanghai) Co. Ltd., Shanghai/China Cny 108,697 100.00

BaX Global Logistics Sdn.Bhd., Petaling Jaya/Malaysia MyR 92,000 100.00

BEMi JOyau SCi, Montaigu Cedex/France EuR 134 100.00

Bischof Gesellschaft mbH., Vienna/austria EuR 109 100.00

BTL aB, Göteborg/Sweden SEK 2,013,616 100.00

BTL nord GmbH, Lübeck EuR 19,374 100.00

BTL Reinsurance S.a./ Luxembourg/Luxembourg SEK 42,791 100.00

dB Schenker FLLC, Minsk/Belarus ByR –117,072 100.00

dP Schenker, Kiev/ukraine uaH –21,735 100.00

dVa Marine Re S.a., Luxembourg/Luxembourg EuR 11,041 65.00

ELaG Emder Lagerhaus und automotive GmbH, Emden EuR 1,490 100.00

ELSPEd Speditions-Gesellschaft m.b.H., Hamburg EuR 3,400 100.00


Equity (TLC1))

Ownership (%)

Engelberg Transportes internacionales C.a. (Entra), Caracas/Venezuela VEF 19,483 100.00

EVaG Emder Verkehrs und automotive Gesellschaft mbH, Emden EuR 2,501 100.00

EVB Handelshaus Bour GmbH, Landau in der Pfalz EuR 25 100.00

Facility Plus B.V., Tilburg/the netherlands EuR 855 100.00

Fastighets aktiebolaget Orbyn, Göteborg/Sweden SEK 10,874 100.00

Fertrans aG, Buchs SG/Switzerland CHF 849 100.00

HanGaRTnER Terminal aG, aarau/Switzerland CHF 586 100.00

HanGaRTnER Terminal S.r.l., Verona/italy EuR –115 100.00

HB Zolldeklarationsservice GmbH, Vienna/austria EuR 65 100.00

Heck Slovensko s.r.o., Bratislava/Slovakia EuR 36 100.00

Herber Hausner Szállitmányozási Kft., Budapest/Hungary HuF 21,879 100.00

intertec asia Limited, Sheung Wan/Hong Kong HKd 14,116 100.00

intertec Beteiligungs-GmbH, Landau in der Pfalz EuR 29,729 100.00

intertec GmbH, Landau in der Pfalz EuR 26 100.00

inTERTEC Polska Sp.zo.o., nadarzyn/Poland PLn 412 100.00

intertec Retail Logistics GmbH, Landau in der Pfalz EuR 26 100.00

inter-union Technohandel Gesellschaft m.b.H., Vienna/austria EuR 19 100.00

inter-union Technohandel GmbH, Landau in der Pfalz EuR 26 100.00

intreprinderea Mixta “S.C. Schenker” S.R.L., Chisinau/Moldavia MdL 2,655 96.69

Joyau S.a., Montaigu Cedex/France EuR 14,298 100.00

Karpeles Flight Services (H.K.) Limited, Hong Kong/Hong Kong HKd 5,264 100.00

Karpeles Flight Services GmbH, Frankfurt am Main EuR 1,637 100.00

Karpeles Freight Services inc., delaware/uSa uSd –15 100.00

KB Ädelgasen 1 -Jönköping, Jönköping/Sweden SEK 111,422 100.00

KB Älghunden Jönköping, Jönköping/Sweden SEK 21,894 100.00

KB Älghunden 1 -Jönköping, Jönköping/Sweden SEK 28,871 100.00

KB anholt 3, Stockholm/Sweden SEK 9,199 100.00

KB arbetsbasen 4 -Stockholm, Stockholm/Sweden SEK 43,517 100.00

KB Ättehögen Östra 1 -Helsingborg, Helsingborg/Sweden SEK 67,336 100.00

KB Backa 107:3 -Göteborg, Göteborg/Sweden SEK 137,409 100.00

KB Backa 107:4 -Göteborg, Göteborg/Sweden SEK 33,707 100.00

KB Baggböle 2:35 -umeå, umeå/Sweden SEK 23,787 100.00

KB Benkammen 12 -Malmö, Malmö/Sweden SEK 133,304 100.00

KB Bleket 1 -Karlstad, Karlstad/Sweden SEK 44,604 100.00

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Equity (TLC1))

Ownership (%)

KB distributören 3 och 4 -Örebro, Örebro/Sweden SEK 87,093 100.00

KB Forsmark 2 -Stockholm, Stockholm/Sweden SEK 65,891 100.00

KB Forsmark 3 -Stockholm, Stockholm/Sweden SEK 173,366 100.00

KB Forsmark 5 Stockholm, Göteborg/Sweden SEK –290 100.00

KB Frysen 1 Visby, Visby/Sweden SEK 16,809 100.00

KB Fryshuset 3-Visby, Visby/Sweden SEK 1,029 100.00

KB Köpmannen 10 -Västerås, Västerås/Sweden SEK 39,729 100.00

KB Kungsängen 28:1 -uppsala, uppsala/Sweden SEK 11,357 100.00

KB Langtradaren 2 -Borlänge, Borlänge/Sweden SEK 35,968 100.00

KB Lertaget 1, Skara, Skara/Sweden SEK 48,419 100.00

KB Malmö Hamnen 22 Malmö, Malmö/Sweden SEK 67,791 100.00

KB Maskinen 3 -Linköping, Linköping/Sweden SEK 63,924 100.00

KB neonljuset 3 -Eskilstuna, Eskilstuna/Sweden SEK 4,979 100.00

KB Önnestad 108:4 -Kristianstad, Kristianstad/Sweden SEK 43,243 100.00

KB Överön 1:66 -Örnsköldsvik, Örnsköldsvik/Sweden SEK 11,319 100.00

KB Pantern 1 -Växjö, Växjö/Sweden SEK 39,145 100.00

KB Reläet 8 -norrköping, norrköping/Sweden SEK 27,259 100.00

KB Sandstuhagen 3 -Stockholm, Stockholm/Sweden SEK 53,698 100.00

KB Sörby 24:3 -Gävle, Gävle/Sweden SEK 36,845 100.00

KB Storheden 1:8 -Luleå, Luleå/Sweden SEK 30,105 100.00

KB Tingstadsvassen 31:3 -Göteborg, Göteborg/Sweden SEK 38,328 100.00

KB Transporten 1 -Hultsfred, Hultsfred/Sweden SEK 20,123 100.00

KB Transportören 1 -Värnamo, Värnamo/Sweden SEK 88,730 100.00

KB Viken 3 -Karlshamn, Karlshamn/Sweden SEK 12,103 100.00

KB Vindtrycket 1 -Borås, Borås/Sweden SEK 67,791 100.00

KB Vivstamon 1:13 -Timrå, Timrå/Sweden SEK 55,409 100.00

Kiinteistö Oy Ferryroad, Helsinki/Finland EuR 437 100.00

Kiinteistö Oy Helsingin Metsäläntie 2-4, Helsinki/Finland EuR 4,075 100.00

Kiinteistö Oy Kaakon Terminaali, Lappeenranta/Finland EuR 137 100.00

Kiinteistö Oy Porin Kiitolinja, Björneborg/Finland EuR 136 100.00

Kiinteistö Oy Reininkatu 9, Vaasa/Finland EuR 34 100.00

Kiinteistö Oy Seinäjoen Kiitolinja-asema, Seinäjoki/Finland EuR 165 100.00

Kiinteistö Oy Tampereen Rahtiasema, Tampere/Finland EuR 437 100.00

Kiinteistö Oy Tir-Trans, Joentaustankatu/Finland EuR 529 100.00


Equity (TLC1))

Ownership (%)

Kiinteistö Oy Turun nosturinkatu 6, Turku/Finland EuR 1,100 100.00

Kiinteistömaaliikenne Oy, Helsinki/Finland EuR 1,759 54.70

Langtradaren i Jämtland aB, Göteborg/Sweden SEK 5,677 100.00

Luxemburger Transport Logistik diekirch S.a., Wilwerdange/Luxembourg EuR 669 100.00

Oy Schenker East aB, Helsinki/Finland EuR 56,322 100.00

PT. Schenker Petrolog utama, Jakarta/indonesia uSd 17,310 71.00

Rengaslinja Oy, Helsinki/Finland EuR 360 100.00

Romtrans Holiday Ltd., Eforie Sud, Constanţa/Romania ROn –213 99.46

Scanspol Sp.zo.o., Warsaw/Poland PLn 2,507 99.62

Scantrans SaS, Rouen/France EuR 447 100.00

SCHEnKER & Co. aG, Vienna/austria EuR 138,177 100.00

Schenker (asia Pacific) Pte. Ltd., Singapore/Singapore SGd 574,195 100.00

Schenker (BaX) Europe Holding GmbH, Essen EuR 25 100.00

Schenker (BaX) Holding Corp., delaware/uSa uSd 120,295 100.00

Schenker (H.K.) Ltd., Hong Kong/Hong Kong HKd 114,329 100.00

Schenker (ireland) Ltd., Shannon/ireland EuR 11,166 100.00

Schenker (L.L.C), dubai/united arab Emirates aEd 39,311 60.00

Schenker (Lao) Sole Co., Ltd., Vientiane/Laos uSd 166 100.00

Schenker (nZ) Ltd., auckland/new Zealand nZd 15,143 100.00

Schenker (Thai) Holdings Ltd., Bangkok/Thailand THB 54,916 100.00

Schenker (Thai) Ltd., Bangkok/Thailand THB 1,587,952 100.00

Schenker a.E., athens/Greece EuR 106 100.00

Schenker a/S, Hvidovre/denmark dKK 129,000 100.00

Schenker aB, Göteborg/Sweden SEK 667,609 100.00

Schenker akeri aB, Göteborg/Sweden SEK 139,556 100.00

Schenker aktiengesellschaft, Essen EuR 855,074 100.00

Schenker argentina S.a., Buenos aires, argentina aRS 5,245 100.00

Schenker aS, Oslo/norway nOK 612,850 100.00

Schenker australia Pty. Ltd., alexandria/australia aud 247,314 100.00

Schenker B.V., Tilburg/the netherlands EuR 2,108 100.00

SCHEnKER BETEiLiGunGS GmbH, dortmund EuR 26 100.00

SCHEnKER BETEiLiGunGS GmbH & Co. OHG, Mülheim an der Ruhr EuR 0 100.00

Schenker BiTCC Logistics (Beijing) Co., Ltd., Beijing/China Cny 1,015 70.00

Schenker Business Services LLC, Moscow/Russia Cny 81,225 70.00

Schenker Cargo Oy, Turku/Finland RuB –2,024 100.00

Schenker Chile S.a., Santiago, Chile EuR 21,810 100.00

Schenker China Ltd., Pudong, Shanghai/China CLP 5,165,016 100.00

Schenker Consulting aB, Göteborg/Sweden Cny 1,441,699 100.00

Schenker Customs agency B.V., Rotterdam/the netherlands SEK 12,793 100.00

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Equity (TLC1))

Ownership (%)

Schenker d.d., Ljubljana/Slovenia EuR 3 100.00

SCHEnKER d.o.o., Sarajevo/Bosnia-Herzegovina EuR 16,993 100.00

Schenker d.o.o., Zagreb/Croatia BaM 1,106 100.00

Schenker d.o.o., Belgrade/Serbia HRK 19,424 100.00

Schenker dedicated Services aB, Göteborg/Sweden RSd 58,803 100.00

Schenker dedicated Services Germany GmbH, Essen SEK 17,315 100.00

Schenker deutschland aG, Frankfurt am Main EuR 292 100.00

Schenker do Brasil Transportes internacionais Ltda., São Paulo/Brazil EuR 64 100.00

SCHEnKER dOOEL, Skopje/Macedonia BRL 29,547 100.00

Schenker Egypt Ltd., Cairo/Egypt MKd 51,916 100.00

SCHEnKER EOOd, Sofia/Bulgaria EGP 5,876 60.00

Schenker Equipment aB, Göteborg/Sweden BGn 10,709 100.00

Schenker Filen 8 aktiebolag, Göteborg/Sweden EuR 5,044 100.00

Schenker High Tech Logistics B.V., Rotterdam/the netherlands SEK 4,973 100.00

Schenker Holdings (nZ) Limited, auckland/new Zealand EuR 21,899 100.00

SCHEnKER india PRiVaTE LiMiTEd, new delhi/india nZd 20,314 100.00

Schenker international (HK) Ltd., Hong Kong/Hong Kong inR 1,895,327 100.00

Schenker international (Macau) Ltd., Macau/Macau HKd 1,475,382 100.00

Schenker international (Macau) Ltd., Macau/Macau HKd 30,899 100.00

SCHEnKER inTERnaTiOnaL aKTiEnGESELLSCHaFT, Essen EuR 56 100.00

Schenker international B.V., Rotterdam/the netherlands EuR 9,617 100.00

Schenker international S.a. de C.V., Mexico City/Mexico MXn 244,828 100.00

Schenker ireland Holding Limited, dublin/ireland EuR 23,991 100.00

Schenker italiana S.p.a., Peschiera/italy EuR 54,751 100.00

Schenker Khimji’s LLC, Maskat/Sultanate of Oman OMR 336 60.00

Schenker Korea Ltd., Seoul/Republic Korea KRW 35,040,429 100.00

Schenker Limited, London/Great Britain GBP 17,899 100.00

Schenker Logistics (Chengdu) Co., Ltd., Chengdu/China Cny –12,583 100.00

Schenker Logistics (Chongqing) Co. Ltd, Chongqing/China Cny 14,747 100.00

Schenker Logistics (Guangzhou) Company Ltd., Guangzhou/China Cny 71,275 100.00

Schenker Logistics (Malaysia) Sdn Bhd., Kuala Lumpur/Malaysia MyR 107,771 100.00

Schenker Logistics (Shanghai) Co., Ltd., Shanghai/China Cny 8,540 100.00

Schenker Logistics (Shenzhen) Co. Ltd., Shenzhen/China Cny 34,071 100.00


Equity (TLC1))

Ownership (%)

Schenker Logistics (Suzhou) Company Ltd., Suzhou/China Cny 108,978 100.00

Schenker Logistics (Xiamen) Co. Ltd., Xiamen/China Cny 51,726 100.00

Schenker Logistics aB, Göteborg/Sweden SEK –1,500 100.00

Schenker Logistics inc., Calamba City/Philippines PHP 10,868 100.00

Schenker Logistics L.L.C., abu dhabi/united arab Emirates aEd 32,959 70.00

Schenker Logistics S.a., Barcelona/Spain EuR 135,600 100.00

Schenker Logistics, inc., Greensboro, nC/uSa uSd 39,643 100.00

Schenker Ltd., nairobi/Kenya KES –296,083 100.00

SCHEnKER LuXEMBuRG GMBH, Leudelange/Luxembourg EuR 634 100.00

Schenker Malaysia Sdn. Bhd., Kuala Lumpur/Malaysia MyR 0 100.00

Schenker Maroc S.a.r.l., Casablanca/Morocco Mad 12,406 100.00

Schenker Mauritanie SaS, nouakchott/Mauretania MRO 298,817 100.00

Schenker Mauritius (Malaysian Holdings) Ltd., Port Louis/Mauritius uSd 36,017 100.00

Schenker Mauritius (Thai Holdings) Ltd., Port Louis/Mauritius uSd 35,100 100.00

Schenker Metafores a.G. i. L., athens/Greece EuR 786 100.00

Schenker Middle East FZE, dubai/united arab Emirates aEd 49,150 100.00

SCHEnKER n.V., antwerp/Belgium EuR 42,244 100.00

Schenker namibia (Pty) Ltd., Windhoek/namibia nad 5,166 100.00

Schenker nederland B.V., Rotterdam/the netherlands EuR 5,396 100.00

Schenker nemzetközi Szállítmányozási és Logisztikai Kft., Budapest/Hungary HuF 3,921,107 100.00

Schenker north aB, Göteborg/Sweden SEK 1,864,755 100.00

Schenker of Canada Ltd., Toronto/Canada Cad 54,756 100.00

Schenker Oy, Helsinki/Finland EuR 28,063 100.00

Schenker Panama S.a., Panama City/Panama uSd 2,897 100.00

Schenker Peru S.R.L., Lima/Peru PEn 5,795 100.00

Schenker Philippines, inc., Makati City/Philippines PHP 623,321 100.00

Schenker Privpak aB, Borås/Sweden SEK 2,876 100.00

Schenker Privpak aS, Oslo/norway nOK –101 100.00

Schenker Property Sweden aB, Göteborg/Sweden SEK 28,598 100.00

Schenker Re Limited, dublin/ireland EuR 42,522 100.00

Schenker Romtrans S.a., Bucharest/Romania ROn 378,844 99.46

Schenker S.a., Guatemala City/Guatemala GTq –11,437 100.00

SCHEnKER s.r.o., Bratislava/Slovakia EuR 2,109 100.00

Schenker Sa, Gennevilliers/France EuR 87,509 100.00

Schenker Saudi arabia LLC, Riyadh/Saudi arabia SaR 24,212 100.00

Schenker Switzerland aG, Zurich/Switzerland CHF 59,050 100.00

Schenker Shared Services (nanjing) Co. Ltd., nanjing/China Cny 7,043 100.00

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Equity (TLC1))

Ownership (%)

Schenker Singapore (PTE) Ltd., international Forwarders, Singapore/Singapore SGd 167,058 100.00

Schenker South africa (Pty) Ltd., isando/South africa ZaR 202,098 100.00

Schenker Sp. z o.o., Warsaw/Poland PLn 299,406 99.62

SCHEnKER spol. s r.o., Prague/Czech Republic CZK 294,172 100.00

Schenker Transitarios, S.a., Loures/Portugal EuR –384 100.00

Schenker Transport aktiebolag, Göteborg/Sweden SEK 71,005 100.00

Schenker Transport Groep B.V., Tilburg/the netherlands EuR 2,066 100.00

Schenker Vietnam Co., Ltd., Ho-Chi-Minh City/Vietnam uSd 13,566 100.00

Schenker, inc., new york/uSa uSd 86,459 100.00

Schenker-arkas nakliyat Ve Tic. a.S., Zincirlikuyu/Turkey TRy 41,521 55.00

Schenker-BTL Ltd., London/Great Britain GBP 0 100.00

Schenker-Gemadept Logistics Vietnam Company Limited, Province Binh duong/Vietnam uSd –545 51.00

SCHEnKER-JOyau SaS, Montaigu Cedex/France EuR 22,905 100.00

Schenkerocean Ltd, Wanchai/Hong Kong HKd 5,748 100.00

Schenker-Seino Co. Ltd., Tokyo/Japan JPy 5,393,958 60.00

Sia Schenker, Riga/Latvia LVL 3,136 100.00

Sia Sky Partners, Riga/Latvia LVL 30 100.00

Sky Partners OÜ, Tallinn/Estonia EuR 1,073 100.00

Stinnes (uK) Limited, Feltham, Middlesex/Great Britain GBP 22,194 100.00

Stinnes immobiliendienst aG & Co. KG, Mülheim an der Ruhr EuR 5,909 100.00

Suomen Kiitoautot Oy, Kuopio/Finland EuR 19,153 100.00

SW Zoll-Beratung GmbH, Wees EuR 1,317 100.00

TEGRO aG, Schwerzenbach/Switzerland CHF 7,404 90.00

Trafikaktiebolaget nP Kagström, Göteborg/Sweden SEK 1,899 100.00

TRanSa Spedition GmbH, Offenbach am Main EuR 13,139 100.00

Transorient Sa, Bucharest/Romania ROn 2,623 53.71

Transport Gesellschaft mbH, Hamburg EuR 586 96.70

Transworld asig – Broker de asigurare Ltd., Bucharest/Romania ROn 351 99.46

uaB “Schenker,” Vilnius/Lithuania LTL 4,940 100.00

Viktor E. Kern Gesellschaft m.b.H., Vienna/austria EuR 1,958 100.00

ZaO Schenker, Moscow/Russia RuB 239,772 100.00

ZaO Schenker Russija, Moscow/Russia RuB 5,409 100.00

Zweite Kommanditgesellschaft Stinnes immobiliendienst aG & Co., Mülheim an der Ruhr EuR 96,205 100.00

aT EquiT y

adRia KOMBi, nacionalna družba za kombinirani promet d.o.o., Ljubljana/Slovenia EuR 10,749 26.00


Equity (TLC1))

Ownership (%)

aTS air Transport Service aG, Zurich/Switzerland 4) CHF 5,650 26.00

autoport Emden GmbH, Emden 2), 3) EuR 95 33.30

Bäckebols Åkeri aB, Hisings Backa/Sweden 3) SEK 65,447 35.00

BTu – Bilspedition Transportörer utvecklings aB, Solna/Sweden 3) SEK 974 50.00

Express air Systems GmbH (EaSy), Kriftel 2), 3) EuR 3,709 50.00

Gardermoen Perishables Center aS, Gardermoen/norway 2) nOK 7,346 33.30

Germans Corbalan & alvarez, S.L., Manresa (Barcelona)/Spain 3) EuR 814 20.00

Halmstadsåkarnas Fastighets aB, Halmstad/Sweden 2), 3) SEK 19,984 31.44

i.M. “Moldromukrtrans” S.R.L., Chisinau/Moldova 3) MdL 16,080 33.15

LogCap-iR Grundverwertungsgesellschaft mbH, Vienna/austria 2) EuR 4,977 49.00

Speditionsbau und Verwertungsgesellschaft m.b.H., Salzburg/austria 2), 3) EuR 45 25.00

Titan Containers Romania SRL, Constanţa/Romania 3) ROn 261 19.89

Trans Jelabel S.L., aldeamayorde S Martin/Spain 3) EuR 202 20.00

Transatlantic Shipping and Trading SRL, Bucharest/Romania 3) ROn 5,209 49.73

Värnamo Åkeri aB, Värnamo/Sweden 3) SEK 15,910 50.00

Volla Eiendom aS, Oslo/norway 2), 3) nOK 13,321 50.00

DB seRvices

FuLLy COnSOLidaTEd

dB dienstleistungen GmbH, Berlin EuR 618,511 100.00

dB Fahrzeuginstandhaltung GmbH, Frankfurt am Main EuR 199,850 100.00

dB FuhrparkService GmbH, Frankfurt am Main EuR 3,363 100.00

dB Kommunikationstechnik GmbH, Berlin EuR 3,685 100.00

dB Mobility Services austria GmbH, Vienna/austria EuR 330 100.00

dB Rent GmbH, Frankfurt am Main EuR 32 100.00

dB Services GmbH, Berlin EuR 10,677 100.00

dB Sicherheit GmbH, Berlin EuR 1,893 100.00

dB Systel GmbH, Frankfurt am Main EuR 226,219 100.00

dB Systel uK Limited, doncaster/Great Britain GBP 1,567 100.00

dB Waggonbau niesky GmbH, niesky EuR –8,154 100.00

DB netze eneRgy

FuLLy COnSOLidaTEd

dB Energie GmbH, Frankfurt am Main EuR 656,732 100.00

DB netze tR ack

FuLLy COnSOLidaTEd

dB Bahnbau Gruppe GmbH, Berlin EuR 27,255 100.00

dB Fahrwegdienste GmbH, Berlin EuR 2,491 100.00

dB netz aktiengesellschaft, Frankfurt am Main EuR 7,323,531 100.00

dB Regionetz infrastruktur GmbH, Frankfurt am Main EuR 1,902 100.00

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Equity (TLC1))

Ownership (%)

deutsche umschlaggesellschaft Schiene– Straße (duSS) mbH, Bodenheim am Rhein EuR 2,380 87.50

MegaHub Lehrte Betreibergesellschaft mbH, Hanover EuR 296 65.62

THG Terminal Heilbronn GmbH, Heilbronn EuR 33 65.71

aT EquiT y

EEiG Corridor Rotterdam-Genoa EWiV, Frankfurt am Main 3), 5) EuR 22 33.33

Güterverkehrszentrum Entwicklungsgesellschaft dresden mbH, dresden 2), 3) EuR 2,397 24.53

Tia GmbH, augsburg 3), 4) EuR 146 42.88

TKn Terminal Köln-nord GmbH, Cologne 3), 4) EuR 18 42.88

TriCon Container-Terminal nuremberg GmbH, nuremberg 3), 4) EuR 1,489 21.88

DB netze stations

FuLLy COnSOLidaTEd

dB BahnPark GmbH, Berlin EuR 3,975 51.00

dB Station & Service aktiengesellschaft, Berlin EuR 1,496,691 100.00

aT COST

immobilien-Vermietungsgesellschaft Schumacher & Co Objekt Bahnhöfe deutschland KG, düsseldorf 3), 4) EuR –18,382 100.00

TudO Grundstücks-Vermietungsgesellschaft mbH & Co. Objekt Bahnhöfe KG düsseldorf, düsseldorf 3), 4) EuR –987 100.00

otheR suBsiDiaRies

FuLLy COnSOLidaTEd

aMEROPa-REiSEn GmbH, Bad Homburg v. d. Höhe EuR 2,843 100.00

dB (uK) investments Limited, Sunderland/Great Britain GBP 901,080 100.00

dB (uK) Logistics Holdings Limited, doncaster/Great Britain GBP 1,880,054 100.00

dB Belgie Holding BVBa, antwerp/Belgium EuR 37,769 100.00

dB Czech Holding s.r.o., Rudná/Czech Republic CZK 245,875 100.00

dB danmark Holding apS, Hvidovre/denmark dKK 206,936 100.00

dB dialog GmbH, Berlin EuR 1,003 100.00

dB France Holding SaS, Gennevilliers Cedex/France EuR 540,152 100.00

dB Gastronomie GmbH, Frankfurt am Main EuR 1,203 100.00

dB Hungaria Holding Kft., Budapest/Hungary HuF 11,098,876 100.00

dB international Brasil Servicos de Consultoria Ltda., Rio de Janeiro/Brazil BRL –641 100.00

dB international GmbH, Berlin EuR 33,466 100.00

dB international uSa, inc., delaware/uSa uSd –208 100.00

dB JobService GmbH, Berlin EuR 3,354 100.00

dB Media & Buch GmbH, Kassel EuR 26 100.00

dB Mobility Logistics aG, Berlin EuR 2,388,783 100.00

dB nederland Holding B.V., Heerenveen/the netherlands EuR 206,522 100.00

dB Polska Holding Sp.z.o.o, Warsaw/Poland PLn 1,527,416 100.00

dB Projekt Stuttgart-ulm GmbH, Stuttgart EuR 1,896 100.00

dB ProjektBau GmbH, Berlin EuR 22,339 100.00


Equity (TLC1))

Ownership (%)

dB Switzerland Holding aG, Zug/Switzerland CHF 96,066 100.00

dB Systemtechnik GmbH, Minden EuR 1,371 100.00

dB uK Holding Limited, doncaster/Great Britain GBP 1,882,917 100.00

dB uS Corporation, Tarrytown/uSa uSd 438,383 100.00

dB uS Holding Corporation, Tarrytown/uSa uSd 460,685 100.00

dB Vertrieb GmbH, Frankfurt am Main EuR 9,135 100.00

dB Zeitarbeit GmbH, Berlin EuR 17 100.00

deutsche Bahn Finance B. V., amsterdam/the netherlands EuR 35,671 100.00

deutsche Bahn France Voyages & Tourisme SaS, Paris/France EuR 274 100.00

deutsche Bahn iberica Holding, S.L., Barcelona/Spain EuR 176,549 100.00

deutsche Bahn Romania Holding S.R.L., Bucharest/Romania ROn 182 100.00

deutsche Bahn Stiftung gGmbH, Berlin EuR 494 100.00

deutsche industrieholz GmbH, Essen EuR 236 29.15

dVa deutsche Verkehrs-assekuranz-Vermittlungs-GmbH, Bad Homburg EuR 1,078 65.00

dVa REinSuRanCE LiMiTEd, dublin/ireland EuR 5,966 65.00

Engineering Support Group Ltd, doncaster/Great Britain GBP 724 100.00

Frank & Schulte GmbH, Essen EuR 26 100.00

Grundstückspool Potsdam Center GbR mbH, Berlin EuR – 70.00

HEROS Rail Rent GmbH, Fürth 11) EuR 1,951 2.00

Mataki Kemi aB, Malmö/Sweden SEK 0 100.00

Precision national Plating Services, inc., delaware/uSa uSd –18,125 100.00

Railway approvals Ltd, doncaster/Great Britain GBP 253 100.00

Schenker international aB, Göteborg/Sweden SEK 847,005 100.00

Stinnes Beteiligungs-Verwaltungs GmbH, Essen EuR 175,181 100.00

Stinnes Handel GmbH & Co. Beteiligungs OHG, Essen EuR –92 100.00

Stinnes Holz GmbH, Essen EuR 151 53.00

Stinnes Logistics GmbH, Essen EuR 4,071 100.00

Stinnes Montan Gesellschaft mit beschränkter Haftung i. L., Essen EuR 182 100.00

uBB Polska Sp.z o.o., Swinoujscie/Poland PLn 601 100.00

uBB usedomer Bäderbahn GmbH, Heringsdorf EuR 2,486 100.00

unterstützungskasse der Firma H.M. Gehrckens Gesellschaft mit beschränkter Haftung, Hamburg EuR 103 100.00

aT EquiT y

BahnflächenEntwicklungsGesellschaft nRW mbH, Essen 3), 4) EuR 302 49.90

Beijing HuaJing deBe international Engineering Consulting Co., Ltd, Beijing/China 3), 4) Cny 6,061 25.00

BwFuhrparkService GmbH, Troisdorf 3), 4) EuR 139,983 24.90

Cd-duSS Terminal, a.s., Lovosice/Czech Republic 3), 4) CZK 6,844 49.00

Elevator-Gesellschaft mit beschränkter Haftung, Hanover 2) EuR 210 50.00

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(42) Management Board and Supervisory Board

manaGement BoarD

the names and mandates of the members of the Management Board

of DB AG and the Management Board of DB Ml AG are on pages 46

and 47.

superVisorY BoarD

Prof. Dr. Dr. Utz-Hellmuth Felcht

Chairman of the Supervisory Board,

partner one equity partners europe GmbH,

Munich

a) A DB Mobility logistics AG (Chairman)

b) A CRH plc, Dublin/Ireland

A Jungbunzlauer Holding AG, Basel /Switzerland

(Administrative Board)

Alexander Kirchner*

Deputy Chairman of the Supervisory Board,

Chairman of the eisenbahn- und Verkehrsgewerkschaft trade union,

Runkel

a) A DB Mobility logistics AG

A DeVK Deutsche eisenbahn Versicherung

lebensversicherungsverein a.G. Betriebliche Sozialeinrichtung

der Deutschen Bahn (Chairman)

A DeVK Deutsche eisenbahn Versicherung Sach- und

HuK-Versicherungsverein a.G. (Chairman)

Betriebliche Sozialeinrichtung der Deutschen Bahn

A DeVK Rückversicherungs- und Beteiligungs-Aktiengesellschaft

(Chairman)

Dr. Hans Bernhard Beus

State Secretary in the Federal Ministry of Finance,

Berlin

– until January 8, 2014 –


A Deutsche telekom AG

b) A Bundesanstalt für Immobilienaufgaben (Administrative Board)

A g.e.b.b. Gesellschaft für entwicklung, Beschaffung

und Betrieb mbH

A KfW IpeX-Bank GmbH

Jürgen Beuttler*

Head of ItK and CIo long-Distance, Data protection, Compliance

at DB Fernverkehr AG,

Wiesbaden

– from August 1, 2013 –


Equity (TLC1))

Ownership (%)

EuROFiMa Europäische Gesellschaft für die Finanzierung von Eisenbahnmaterial, Basel/Switzerland CHF 1,545,392 22.60

innovationszentrum für Mobilität und gesellschaftlichen Wandel (innoZ) GmbH, Berlin 3), 4) EuR 177 50.27

Rail Technology Company Limited, Jeddah/Saudi arabia 3), 4) SaR 2,712 24.90

SSG Saar-Service GmbH, Saarbrücken 3) EuR 1,352 25.50

aT COST

TREMa Grundstücks-Vermietungsgesellschaft mbH & Co. Objekt Bahnhöfe West KG, Berlin 2), 3) EuR 4,155 94.00

TREnTO Grundstücks-Vermietungsgesellschaft mbH & Co. Objekt Bahnhöfe Ost KG i. L., düsseldorf 3), 4) EuR –504 100.00

1) iFRS data.2) Preliminary data.3) Local GaaP data. 4) data: 2012 financial year.5) data: 2011 financial year.6) data: 2010 financial year.7) data: 2009 financial year.8) data: 2008 financial year.9) data: liquidation balance sheet September 30, 2010.10) data: interim balance sheet august 31, 2010.11) inclusion in the consolidated financial statements according

to SiC-12 (Consolidation Special Purpose Entities).

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Christoph Dänzer-Vanotti

lawyer,

essen

a) A RWe Generation Se

b) A RAG Stiftung (Board of trustees)

Patrick Döring

Member of the Managing Board of Agila Haustierversicherung AG,

Hanover

a) A VIFG Verkehrsinfrastrukturfinanzierungsgesellschaft mbH

Dr.-Ing. Dr. E.h. Jürgen Großmann

Gesellschafter Georgsmarienhütte Holding GmbH,

Hamburg

a) A BAtIG Gesellschaft für Beteiligungen mbH

A British American tobacco (Germany) GmbH

A British American tobacco (Industrie) GmbH

A SuRteCo Se (Chairman)

b) A Hanover Acceptances limited, london/Great Britain

A RAG Stiftung (Chairman of Board of trustees)

Dr. Bernhard Heitzer

State Secretary in the Federal Ministry of economics

and technological Affairs,

Alfter

– until January 29, 2014 –


Jörg Hensel*

Chairman of the Central Works Council of DB Schenker Rail AG,

Hamm

a) A DB Schenker Rail AG

b) A DeVK Deutsche eisenbahn Versicherung

Sach- und HuK-Versicherungsverein a.G.


A DeVK pensionsfonds-AG (Advisory Board)

Klaus-Dieter Hommel*

Deputy Chairman of the eisenbahn- und Verkehrsgewerkschaft

trade union,

Frankfurt am Main

a) A DB Fahrzeuginstandhaltung GmbH


lebens versicherungsverein a.G.



Sach- und HuK-Versicherungsverein a.G.


A DeVK pensionsfonds-AG

A DeVK Rechtsschutz-Versicherungs-AG

b) A DB Dienstleistungen GmbH (Advisory Board)

Wolfgang Joosten*

Chairman of the Central Works Council DB Fernverkehr AG,

lünen

a) A DB Fernverkehr AG

b) A DeVK Deutsche eisenbahn Versicherung

lebensversicherungsverein a.G.


(Advisory Board)

Dr. Jürgen Krumnow

Former member of the Management Board of Deutsche Bank AG,

Wiesbaden


A lenze Se (Chairman)

b) A peek & Cloppenburg KG (Advisory Board)

Prof. Dr. Knut Löschke

Management consultant,

leipzig

a) A Softline AG (Chairman)

A Stratos Business Solutions AG

b) A Druck & Werte GmbH (Advisory Board, Chairman)

A universitätsklinikum leipzig, AÖR (institution established

under public law) (Chairman)

Vitus Miller*

Chairman of the Central Works Council

Regional /urban transport of DB Group,

Stuttgart

a) A DB Regio AG

Fred Nowka*

Chairman of the Central Works Council of DB netz AG,

Glinzig

b) A DeVK lebensversicherungsverein a.G.

(Advisory Board, Chairman)

Michael Odenwald

State Secretary in the Federal Ministry of transport

and Digital Infrastructure,

Kleinmachnow


A DFS Deutsche Flugsicherung GmbH (Chairman)

A Fraport AG

Ute Plambeck*

Management Representative Deutsche Bahn AG for the

Federal States of Hamburg/Schleswig-Holstein,

Hamburg

– until April 30, 2013 –

a) A Autokraft GmbH (Chairman)

A S-Bahn Hamburg GmbH

A Sparda-Bank Hamburg eG

b) A Seehafen Kiel GmbH & Co. KG (Advisory Board)

K


Mario Reiß*

Chairman of the Works Council of DB Schenker Rail AG, nl Süd-ost,

Süptitz

a) A DB Schenker Rail AG

Regina Rusch-Ziemba*

Deputy Chairwoman of the eisenbahn- und

Verkehrsgewerkschaft trade union

Hamburg

a) A DB Regio AG

A DB Station & Service AG

A DB Bahnbau Gruppe GmbH

A DB Fahrwegdienste GmbH

A DB JobService GmbH

A DB projektBau GmbH

A DeVK Allgemeine lebensversicherungs-AG (Chairman)

A DeVK Allgemeine Versicherungs-AG

A DeVK pensionsfonds-AG

Jens Schwarz*

Chairman of the Group Works Council of Deutsche Bahn AG,

Chemnitz

a) A DB Fahrzeuginstandhaltung GmbH

A DeVK Deutsche eisenbahn Versicherung Sach- und

HuK-Versicherungsverein a.G.


b) A DeVK Allgemeine lebensversicherungs-AG

Dr. Rainer Sontowski

State Secretary in the Federal Ministry of economics and energy,

Berlin

– from January 30, 2014 –


Dr.-Ing. E.h. Dipl.-Ing. Heinrich Weiss

Chairman of the Supervisory Board of SMS Holding GmbH,

Meerbusch


A SMS Holding GmbH (Chairman)

A Voith GmbH

b) A Bombardier Inc., Montreal /Canada

Supervisory Board committees

MeMBeRS oF tHe eXeCutIVe CoMMIttee

A prof. Dr. Dr. utz-Hellmuth Felcht (Chairman)

A Alexander Kirchner

A Michael odenwald

A Jens Schwarz

MeMBeRS oF tHe AuDIt AnD CoMplIAnCe CoMMIttee

A Dr. Jürgen Krumnow (Chairman)

A Michael odenwald

A Jörg Hensel

A Regina Rusch-Ziemba

MeMBeRS oF tHe peRSonnel CoMMIttee



A Michael odenwald

A Jens Schwarz

MeMBeRS oF tHe MeDIAtIon CoMMIttee



A Michael odenwald

A Jens Schwarz

* Employees’ representative on the Supervisory Board.1) Mandate within the Group.

a) Membership in other supervisory boards required by law.

b) Membership in comparable domestic and foreign corporate control

committees of business enterprises.

information relating to december 31, 2013 or the time of leaving the

services of the company in 2013. if appointed after december 31, 2013,

the time of appointment is used.

Berlin, February 20, 2014

Deutsche Bahn Aktiengesellschaft

the Management Board

K


REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS

We have audited the accompanying consolidated financial statements

of Deutsche Bahn Aktiengesellschaft, Berlin, and its subsidiaries, which

comprise the consolidated statement of income and the reconciliation

of the consolidated comprehensive income, the consolidated balance

sheet, consolidated statement of cash flows, consolidated statement

of changes in equity and the notes to the consolidated financial state-

ments for the business year from January 1 to December 31, 2013.

Board of Managing Directors’ Responsibility for the Consolidated Financial Statementsthe Board of Managing Directors of Deutsche Bahn Aktiengesellschaft

is responsible for the preparation of these consolidated financial state-

ments. this responsibility includes that these consolidated financial

statements are prepared in accordance with International Financial

Reporting Standards, as adopted by the eu, and the additional require-

ments of German commercial law pursuant to § (Article) 315a Abs.

(paragraph) 1 HGB (“Handelsgesetzbuch:” German Commercial Code)

and that these consolidated financial statements give a true and fair

view of the net assets, financial position and results of operations of the

group in accordance with these requirements. the Board of Managing

Directors is also responsible for the internal controls as the Board of

Managing Directors determines are necessary to enable the preparation

of consolidated financial statements that are free from material mis-

statement, whether due to fraud or error.

Auditor’s Responsibilityour responsibility is to express an opinion on these consolidated finan-

cial statements based on our audit. We conducted our audit in accor-

dance with §317 HGB and German generally accepted standards for

the audit of financial statements promulgated by the Institut der

Wirtschaftsprüfer (Institute of public Auditors in Germany) (IDW) and

additionally observed the International Standards on Auditing (ISA).

Accordingly, we are required to comply with ethical requirements and

plan and perform the audit to obtain reasonable assurance about

whether the consolidated financial statements are free from material

misstatement.

An audit involves performing audit procedures to obtain audit

evidence about the amounts and disclosures in the consolidated

finan cial statements. the selection of audit procedures depends on the

auditor’s professional judgment. this includes the assessment of the

risks of material misstatement of the consolidated financial statements,

whether due to fraud or error. In assessing those risks, the auditor con-

siders the internal control system relevant to the entity’s preparation

of consolidated financial statements that give a true and fair view. the

aim of this is to plan and perform audit procedures that are appropriate

in the given circumstances, but not for the purpose of expressing an

opinion on the effectiveness of the group’s internal control system. An

audit also includes evaluating the appropriateness of accounting policies

used and the reasonableness of accounting estimates made by the Board

of Managing Directors, as well as evaluating the overall presentation

of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and

appropriate to provide a basis for our audit opinion.

Audit OpinionAccording to §322 Abs. 3 Satz (sentence) 1 HGB, we state that our

audit of the consolidated financial statements has not led to any

reservations.

In our opinion based on the findings of our audit, the consolidated

financial statements comply, in all material respects, with IFRSs, as

adopted by the eu, and the additional requirements of German com-

mercial law pursuant to §315a Abs. 1 HGB and give a true and fair view

of the net assets and financial position of the Group as at December

31, 2013, as well as the results of operations for the business year then

ended, in accordance with these requirements.

REPORT ON THE GROUP MANAGEMENT REPORT

We have audited the accompanying group management report of

Deutsche Bahn Aktiengesellschaft for the business year from January

1 to December 31, 2013. the Board of Managing Directors of Deutsche

Bahn Aktiengesellschaft is responsible for the preparation of the

group management report in accordance with the requirements of

German commercial law applicable pursuant to §315a Abs. 1 HGB. We

conducted our audit in accordance with §317 Abs. 2 HGB and German

generally accepted standards for the audit of the group management

report promulgated by the Institut der Wirtschaftsprüfer (Institute of

public Auditors in Germany) (IDW). Accordingly, we are required to

plan and perform the audit of the group management report to obtain

reasonable assurance about whether the group management report is

consistent with the consolidated financial statements and the audit

findings, as a whole provides a suitable view of the Group’s position and

suitably presents the opportunities and risks of future development.

According to §322 Abs. 3 Satz 1 HGB, we state that our audit of the

group management report has not led to any reservations.

In our opinion based on the findings of our audit of the consolidated

financial statements and group management report, the group manage-

ment report is consistent with the consolidated financial statements,

as a whole provides a suitable view of the Group’s position and suitably

presents the opportunities and risks of future development.

Berlin, February 28, 2014

pricewaterhouseCoopers

Aktiengesellschaft

Wirtschaftsprüfungsgesellschaft

thomas Kieper Rainer Kroker

(German public Auditor) (German public Auditor)

Independent Auditor’s Reportto Deutsche Bahn Aktiengesellschaft, Berlin

K

DAdditional information292 Glossary295 List of abbreviations296 Contacts296 Financial calendar296 Imprint DAdditional information

292 GlossAry

292 sustainability-related terms 293 Financial terms 294 Business-specific terms

295 list oF ABBreviAtions

296 contActs

296 FinAnciAl cAlendAr

K

292 deutsche BAhn Group 2013 AnnuAL RepoRt

Glossary

Sustainability-related terms

A Air pollutants

An air pollutant is a form of air contamination

which can have a damaging effect on the envi-

ronment. the source of an air pollutant can be

either natural or man-made, for example nox

or Co₂.

A customer and quality initiative

A DB Group-wide portfolio of projects man-

aged across all business units and aimed at

improving quality and customer satisfaction.

A climate

not merely weather conditions, rather a “snap-

shot” of the so-called climatic factors (alti-

tude, relief, vegetation, etc.) and climatic ele-

ments (rain, solar radiation, etc.) prevailing at

a particular location.

A eco plus

product enabling freight transport customers

to have their goods transported Co₂-free by

rail on all routes within Germany.

A eco rail innovation

Joint project of DB Group and other partners

for the development of low-emission and

energy-efficient drive systems for rail vehicles.

A eco solutions

Innovative and environmentally friendly

trans port and logistics solutions offered by

DB Schenker.

A energy mix

Breakdown of electricity according to the

manner of its generation (for example, on the

basis of black coal or wind energy).

A environment plus

Special products enabling customers to travel

Co₂-free on Deutsche Bahn trains.

A K brake shoe

Quiet brake technology made using composite

materials (K), which cuts the rolling noise made

by freight cars by half.

A ll brake shoe

Quiet brake technology made using composite

materials (LL).

A Methane (ch4)

A greenhouse gas, a colorless and odorless

hydro carbon, main constituent of natural gas.

A nitrogen oxide (nox)

Air pollutants (acid rain) and greenhouse gases

(n₂o). Compounds of nitrogen and oxygen

atoms, for example laughing gas or nitrous

oxide (n₂o), some of which are harmful to

health/poisonous.

A noise

Sounds which are disruptive or harmful for

human beings and the environment.

A noise abatement program

Voluntary program introduced by the Federal

Government for the reduction of noise on ex -

isting rail lines and implemented by Deutsche

Bahn.

A noise barrier

Means of active protection against noise gen-

erated on rail lines, mainly constructed out of

materials such as aluminum, wood and con-

crete. novel are noise barriers constructed out

of wire cages filled with rocks (gabions).

A noise reduction

Reduction of noise by means of active (for ex -

ample noise barriers) and passive (for example

noise-reducing windows) noise protection

measures.

A noise prevention

noise protection measures on newly built and

expansion lines.

A particles

particulate material, for example dust.

A primary energy

energy from its source in its natural form, i.e.

including the processes of generation, trans-

port and conversion.

A purchasing mix

Breakdown of the sources of the energy pur-

chased by DB energie.

A recycling

Reuse of materials, for example waste.

A recovered paper

Recyclable wastepaper.

A renewable energies

Sources of energy which are renewable and, in

principle, infinite, for example wind or sunlight.

A renewable energies Act

Federal legislation promoting the supply of

energy from renewable sources.

A resource

Aid, funds, reserves, raw material.

A satisfaction index

Index based on satisfaction indicated on a

scale of 1 (very satisfied) to 6 (very dissatis-

fied). these ratings are converted to a scale of

0 to 100 (0 points = rating 6; 20 points = rating

5; 40 points = rating 4; 60 points = rating 3; 80

points = rating 2; 100 points = rating 1).

A soot particles

emissions generated by the combustion of

diesel fuel, for example nox, HC, So₂, Co₂ and

nMHCs. Diesel emissions also include particu-

late matter.

A specific

Relative, for example calculated on the basis

of the volume sold.

A stakeholders

Groups of holders of interests/claims and rep-

resentatives thereof.

A sustainability

Mission statement for the reconciliation of envi-

ronmental, social and economic objectives

with a view to achieving viable development

which accounts for the needs of all generations.

A vegetation management

Checking and cutting back /removal of vege-

tation on and around rail tracks by mechanical

and chemical (in the immediate vicinity of the

tracks only) means.

A Waste

Waste denotes solid-state residual material

which is no longer required, including liquid

and gases kept in containers. Chemical resi-

dues are also considered to be waste material.

A Whisper brakes

See K brake shoes.

K

293AdditionAl inForMAtion GLoSSARy

Financial terms

A capital employed

this encompasses property, plant and equipment

(including intangible assets) and net working

capital.

A commercial paper program (cp program)

Contractual framework or standard documen-

tation for the issue of short-term debt issues.

A cost of capital

Minimum required return, calculated based on

market values as the weighted average cost of

debt and equity capital.

A credit facilities

Lines of credit provided by banks that can be

tapped into as required. these are agreed lines

of credit with different maturities that serve in

part as available liquidity reserves, while “um -

brella credit lines” are available in particular to

foreign subsidiaries as financing for working

capital and as a guarantee reserve.

A debt issuance program

Contractual framework or standard documen -

tation for the issue of bonds. provides a high

degree of flexibility in issuing activity.

A derivative financial instruments

(derivatives)

Derivatives are financial instruments for which

the price or value depends on the future prices

of other goods, assets or benchmarks (interest

rates, indices). these are contracts within which

the parties agree to buy, sell or swap assets in

the future at certain conditions, or to provide

alternative payment of the notional amount.

A earnings before interest and taxes (eBit)

operating profit before the subtraction of inter-

est and taxes.

A earnings before interest, taxes, depreciation

and amortization (eBitdA)

operating profit before the subtraction of inter-

est, taxes, depreciation and amortization.

A equity ratio

Financial ratio based on the balance sheet struc-

ture: proportion of total assets equal to equity,

expressed as a percentage.

A equity method

process of treating subsidiaries that are not to

be included in the consolidated financial state-

ments with all assets and liabilities on a basis of

full consolidation. the book value of the subsid-

iary is adjusted to reflect the development of

the pro rata share of equity.

A Gearing

Key financial performance indicator that provides

a structural indicator of the ratio of net financial

debt to equity, expressed as a percentage.

A Gross capital expenditures

total investments made in property, plant and

equipment and assets, regardless of financing

method.

A Gross profit

Amount of revenues remaining after the subtrac-

tion of the variable (= revenues-based) costs or

direct (= order-based) costs.

A interest-free loan

A loan from the Federal Republic of Germany

that is to be repaid but is not subject to inter-

est. these emerge from financial participation

of the German Federal Government in capital

expenditures in the expansion and replacement

of rail infrastructure.

A international Financial reporting

standards (iFrs)

Internationally recognized accounting stan-

dards. the term IFRS is used to refer to the global

language for business affairs approved by the

International Accounting Standards Board in

2002. Standards approved prior to this are still

cited as International Accounting Standards

(IAS).

A investment grants

Financial participation of third parties in spe-

cific capital expenditure projects without future

repayment requirements.

A net capital expenditures

Gross capital expenditure minus third-party

invest ment grants; for example, for infrastruc-

ture capital expenditures.

A net financial debt

the total of interest-bearing external liabilities

and finance lease liabilities as well as cash and

cash equivalents and interest-bearing external

receivables.

A operate leases

off-balance-sheet financial instruments: leased

or rented assets.

A operating income after interest

Results indicator that also takes into account

costs of financing in order to be able to assess

earnings in the long term (mainly important in

the infrastructure business units). In contrast to

eBIt, the net operating interest income is also

taken into account when calculating this figure.

A plan assets

Assets netted with gross pension obligations.

A rating

An assessment of creditworthiness issued by

rating agencies that affects the refinancing

options available to a company and the associ-

ated costs.

A redemption coverage

Key financial performance indicator showing the

ratio between ongoing financial power and the

financial obligations of the company (adjusted

net financial debt).

A return on capital employed (roce)

Key ratio used for value-oriented management.

Corresponds to the return on operational capital

employed. Ratio of (adjusted) eBIt to capital

em ployed, expressed as a percentage.

A scope of consolidation

the subsidiaries within a group that are included

in the consolidated financial statements.

A swap

A swap is a financial transaction based on the

exchange of future payment flows. this enables

the targeted hedging of financial risks (interest,

currency risks, raw materials).

K


Business-specific terms

A Block train transport

A freight transport service for transporting

freight cars linked to form an entire train.

A Bus kilometers (bus km)

one bus kilometer is equivalent to the route trav-

eled by a bus over a distance of one kilometer.

A capacity utilization

Actual degree of utilization of potential capacity.

A combined transport

the integrated transport of containers or entire

trucks both by road and by rail.

A contract logistics

the bundling of a variety of different logistics

activities. the service provider not only orga-

nizes transport services, but is also responsible

for additional services along the supply chain.

A existing network

the existing rail network, which is the backbone

of the rail infrastructure.

A Facilities quality

Assessment of the condition of the active facil-

ities of the DB netze Stations business unit.

A Freight carrier

A company that is used for the transport of

goods.

A integrated Group structure

train operating company that is also the rail

infrastructure operator.

A intermodal competition

Competition among different modes of trans-

port; for example, between rail and air transport.

A interoperability (multisystem capability)

the ability of rolling stock to adapt to different

technical standards (e.g. track widths or power

systems) and to operate on the varying rail net-

works in different countries with as little delay as

possible.

A intramodal competition

Competition within a mode of transport; for ex -

ample, within the rail sector.

A long-distance transport

transport covering distances of > 50 km or with

a journey time of > 1 hour. Here: transport using

the products ICe, IC/eC and nZ.

A Mode of transport

type of route used by means of transport, for

example road or rail.

A network access

Rail infrastructure companies provide their rail

networks for a fee to train operating companies

for train runs.

A ordering organization

Generally German Federal states, which, as trans-

port authorities, are responsible for ordering

local rail passenger transport services from

transport companies.

A passenger kilometers (pkm)

unit of measurement for volume sold in passen-

ger transport services: product of the number

of passengers transported and the mean jour-

ney distance.

A punctuality

proportion of punctual stops in relation to all

stops along the way and at the end of routes. A

stop is considered punctual if the planned time

of arrival has been exceeded by less than six

minutes for passenger transport and less than

16 minutes for freight transport.

A regional transport

Journeys covering distances of < 50 km or with a

journey time of < 1 hour. Here: transport using

RB, Re and similar products.

A requirement plan

new line construction and line expansion set

out in the Federal transport Infrastructure plan.

A single-car transport

A freight transport service for the haulage of

single freight cars that are attached to a train

with other freight cars. the individual freight

cars of such trains can have different departure

and destination stations.

A stationary systems

Buildings and facilities such as plants and sta-

tions.

A station pricing system

transparent, non-discriminatory pricing system

for the use of passenger stations. the specific

station price depends on the level of perfor-

mance and equipment of each station.

A supply chain

the supply chain of a product encompasses all

activities that generate value, including the

production and sales stages, beginning with raw

materials and continuing to the finished product.

A supply reliability

Measurement of the reliability of the power sup-

ply for the railway operations in Germany.

A ton kilometers (tkm)

unit of measurement for volume sold in freight

transport: product of the freight carried (tons)

and the distance traveled (kilometers).

A total punctuality

the total punctuality for DB netze track com-

prises all train services using the infrastructure

of DB netz AG.

A traction

propulsion for the operation of trains. Depending

on energy source, drive and transmission, a dif-

ferentiation is made between electric, diesel-

electric and diesel-hydraulic traction, among

other things. traction units that have both elec-

tric and diesel traction are also known as hybrid

vehicles.

A train kilometers (train km)

one train kilometer is equivalent to the route

traveled by a train over a distance of one kilo-

meter.

A train-path

Route traveled by a train as set out in the time-

table.

A train-path kilometers (train-path km)

See Volume produced.

A train-path pricing system (tps)

this provides transparent, non-discriminatory

prices for use of the rail network by internal and

external customers taking into account the

individual characteristics of the infrastructure

used.

A transport contract

A contract between an ordering organization

and a train operating company for the provision

of passenger transport services.

A twenty-foot equivalent unit (teu)

Standardized container unit with a length of 20

feet (1 foot = 30 cm).

A volume produced

Distance traveled by train operating companies

on the rail network. unit of measurement: train-

path kilometers (train-path km).

A volume sold

Central key performance indicator used to mea-

sure services provided in passenger and freight

transport. units of measurement: passenger

kilometers (pkm), ton kilometers (tkm).

K

295LISt oF ABBReVIAtIonS

AdditionAl inForMAtion GLoSSARy

list of abbreviations

A A

ABS – expansion line

AgvMoVe – Mobility and transport Services

Association

A B

BAQ – Assessment of facilities quality

bbl – Barrel

BeV – Federal Railroad Fund

BGH – Federal Court of Justice

BilMoG – Accounting Law Modernization Act

BMVI – Federal Ministry of transport

and Digital Infrastructure

BnetzA – Federal networks Agency

for electricity, Gas, telecommunications,

post and Railways

BR – Series

BSoG – Bus Service operators Grant

BSWAG – Law Governing the extension of

the German Rail network

Bus km – Bus kilometers

A c

CGu – Cash-generating units

CHF – Swiss franc

Co₂ – Carbon dioxide

CSA – Credit support agreements

CSo – Chief Sustainability officers

A d

DB AG – Deutsche Bahn AG

DB Finance – Deutsche Bahn Finance B. V.

DBGrG – Deutsche Bahn establishment Act

DB Group – Deutsche Bahn Group

DB ML AG – DB Mobility Logistics AG

DB ML Group – DB Mobility Logistics Group

Dft – Department for transport

A e

eAV – profit transfer agreement

eBA – Federal Railway Authority

eC – euroCity

eCJ – Court of Justice of the european union

eCR – euro Cargo Rail

eeG – Renewable energies Act

eeV – enhanced environmentally

friendly vehicle

eMu – electric multiple unit

eRA – european Railway Agency

eRtMS – european Rail traffic Management

System

eStW – electronic interlocking

etCS – european train and Control System

euRoFIMA – european Company for the

Financing of Railroad Rolling Stock

euRoM – european operations Management

eVG – Railway and transport Workers union

eWC – european Works Council

A F

FS – Ferrovie dello Stato (Italian state railway)

Ftes – Full-time employees

A G

GBp – pound sterling

GDL – German train Driversʼ union

GDp – Gross domestic product

GIS – Geographic information system

GRI – Global Reporting Initiative

GWh – Gigawatt-hour

A h

HFM – Hyperion Financial Management

HGB – German Commercial Code

HKD – Hong Kong dollar

HR – Human Resources

A i

IC – InterCity

ICe – Intercity express

ICS – Internal control system

IFRIC – International Financial Reporting

Interpretations Committee

IFRS – International Financial

Reporting Standards

IZp – Infrastructure State and

Development Report

A J

Jpy – Japanese yen

A K

KAu – Group environment Committee

KBR – Group Works Council

KontraG – Corporate Sector Supervision

and transparency Act

A l

LDZ – Latvijas dzelzceļš (Latvian state railway)

LG – Lietuvos Geležinkeliai (Lithuanian

state railway)

LuFV – Service and Financing Agreement

A M

M & A – Mergers and acquisitions

MaRisk – Minimum requirements for risk

management

MJ – Megajoule

MWh – Megawatt-hour

A n

nBS – newly built line

nkm – Commercial vehicle kilometers

noK – norwegian krone

nS – nederlandse Spoorwegen

(Dutch state railways)

A o

ÖBB – Österreichische Bundesbahnen

(Austrian state railway)

oRK – off Road Kids Foundation

oRR – office of Rail Regulation

A p

p – passengers

pBefG – German passenger transport Act

pCA – Audit and Compliance Committee

pCGK – German Federal public Corporate

Governance Code

pkm – passenger kilometers

pKp – polskie Koleje państwowe

(polish state railway)

ppA – purchase price allocation

A r

Renfe – Red nacional de los Ferrocarriles

españoles (Spanish state railway)

RIC – Rail infrastructure company

RoCe – Return on capital employed

A s

S & p – Standard & poorʼs

SBB – Schweizerische Bundesbahnen

(Swiss state railways)

SCM – Supply chain management

SDD – German Foundation for Depression

Relief

SI – Satisfaction index

SMp – Strategic management process

SnCF – Société nationale des Chemins de

fer Français (French state railway)

SZ – Slovenske železnice (Slovenian

state railway)

A t

t – tons

ten-t Regulation – Regulation on union

Guidelines for the Development of

the trans-european transport network

teu – twenty-foot equivalent unit

tkm – ton kilometers

toC – train operating company

tpS – train-path pricing system

train km – train kilometers

train-path km – train-path kilometers

A u

uIC – International union of Railways

uSD – uS dollar

A v

VCD – German transport Club

VDe – German unity transport projects

VR – VR-yhtymä oy (Finnish state railway)

A W

WACC – Weighted average cost of capital

K


ContaCts

Investor RelationsDeutsche Bahn AG

Investor Relations

europaplatz 1

10557 Berlin

Germany

phone: + 49-30-2 97- 6 40 31

Fax: + 49-069-2 65- 2 01 10

e-mail: [email protected]

Internet: www.db.de/ir-e

this Annual Report, the Annual Report of DB Mobility Logistics Group

and the Annual Financial Statements of Deutsche Bahn AG and up-to-

date information are also available on the Internet.

this Annual Report, the Annual Report of DB Mobility Logistics

Group and the Annual Financial Statements of Deutsche Bahn AG are

published in German and english. In case of any discrepancy, the

German version shall prevail.

the 2013 Annual Report was published on March 27, 2014 and is

also available on the Internet at www.db.de/ar.

Corporate CommunicationsCorporate publications, the Competition Report and the Sustainability

Report are available on the Internet or can be requested from Corporate

Communications:

Deutsche Bahn AG

Corporate Communications

potsdamer platz 2

10785 Berlin

Germany

phone: + 49-30-2 97-6 10 30

Fax: + 49-30-2 97-6 19 19

e-mail: [email protected]

Internet: www.db.de/presse

DB service numberour service number + 49-1806-996633 gives you direct access to all of

our telephone services. the access includes information regarding

general information, booking of train tickets, finding train times, our

customer dialog and our frequent traveler system (BahnCard).

Calls will be charged as follows: calls from a German fixed-line

network cost 20 ct /call. Charges from the German cell phone network

cost 60 ct /call at most.

finanCial CalenDar

July 24, 2014Interim Results press Conference,

publication of the Interim Report

January – June 2014

March 19, 2015Annual Results press Conference,

publication of the Integrated Report 2014

imprint

A concept Deutsche Bahn AG, Investor Re la-

tions A design concept and typesetting Studio

Delhi, Mainz A proofreading AdverteXt, Düssel-

dorf A lithography Koch Lichtsatz und Scan,

Wies ba den A printing ColorDruck Solutions,

Leimen A photography consulting Max Lauten-

schläger, Berlin A photography (from top to bot-

tom): A Cover page: Max Lautenschläger A page 1:

Andreas Labes A page 3: Fred Hafner A page 4: Max

Lauten schläger A page 5: Max Lautenschläger,

Bartlomiej Banaszak A page 6: Max Lautenschlä-

ger A page 7: Max Lautenschläger, uwe Miethe

A page 8: tobias Heyer A page 9: Max Lauten-

schläger, Georg Wagner A page 10: Stefan Warter

A page 11: Max Lautenschläger A page 12: Max

Lautenschläger A page 13: Max Lautenschläger

A page 14: Carsten templin, Max Lautenschläger

A page 15: Max Lautenschläger A page 16: Max

Lautenschläger A page 17: Max Lautenschläger

(1 + 2), Bartlomiej Banaszak (3) A pages 20/21:

Max Lautenschläger A pages 22 /23: Max Lauten-

schläger A page 24: Günter Jazbec, eva Maria

plechinger, DB Arriva A page 25: Andreas Labes,

etihad Rail pJSC A page 26: Max Lautenschläger

(1 + 3), David Karbowiak (2) A page 27: pablo

Castag nola, Max Lautenschläger, Andreas

Lander A pages 28/29: Roland Sigwart A page 30:

Max Lautenschläger (1 + 2), tanja Feuerbaum (3)

A page 31: philipp von Recklinghausen, Michael

Sochiera A page 32: Arne Lesmann A page 33:

Matthias preiser, Andreas Buck, Christian Lukaß

A pages 34 /35: Max Lautenschläger A page 36:

Max Lautenschläger (1 + 3), Georg Wagner (2)

A page 37: pierre olsson, VeRBunD, pablo Cast-

agnola A page 38: DB Arriva, Dalibor tichy, Max

Lautenschläger A pages 40, 44 /45, 49: Max

Lauten schläger

K

[€ million ] 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

statement of income

Revenues 39,107 39,296 37,979 34,410 29,335 33,452 31,309 30,053 25,055 23,962Overall performance 41,756 41,910 40,436 36,617 31,271 35,324 33,254 31,943 26,728 25,890Other operating income 2,853 3,443 3,062 3,120 3,864 3,046 3,219 2,859 2,366 2,860Cost of materials –20,414 –20,960 –20,906 – 19,314 – 15,627 – 18,544 – 17,166 – 16,449 – 12,650 – 12,054Personnel expenses – 14,383 – 13,817 – 13,076 – 11,602 – 11,115 – 10,583 – 9,913 – 9,782 – 9,211 – 9,556Depreciation – 3,228 – 3,328 –2,964 –2,912 –2,825 –2,723 –2,795 –2,950 –2,801 –2,722Other operating expenses – 4,817 – 4,719 – 4,375 – 4,092 – 3,360 – 3,927 – 3,704 – 3,144 – 3,080 – 3,274Operating profit (EBIT ) 1,767 2,529 2,177 1,817 2,208 2,593 2,895 2,477 1,352 1,144Result from investments accounted for using the equity method 3 14 19 17 9 21 32 18 76 49Other financial result – 15 – 13 3 –23 – 4 – 47 – 3 1 7 – 55Net interest income – 879 – 1,005 – 840 – 911 – 826 –760 – 908 – 941 – 945 – 984Profit before taxes on income 876 1,525 1,359 900 1,387 1,807 2,016 1,555 490 154Net profit for the year 649 1,459 1,332 1,058 830 1,321 1,716 1,680 611 180oPer ating incomeEBITDA adjusted 5,139 5,601 5,141 4,651 4,402 5,206 5,113 – – –EBIT adjusted 2,236 2,708 2,309 1,866 1,685 2,483 2,370 2,143 1,350 1,011Value managementCapital employed as of Dec 31 33,086 32,642 31,732 31,312 28,596 27,961 27,393 28,693 27,013 26,490Return on capital employed (ROCE) (%) 6.8 8.3 7.3 6.0 5.9 8.9 8.7 7.5 5.0 3.8Redemption coverage (%) 20.5 22.1 20.5 18.1 19.4 22.5 21.1 18.6 14.7 12.7Gearing (%) 110 109 110 118 115 131 151 213 256 276Net financial debt /EBITDA 3.2 2.9 3.2 3.6 3.4 3.1 3.2 3.9 – –ca sh flow/caPital exPendituresCash flow from operating activities 3,730 4,094 3,390 3,409 3,133 3,539 3,364 3,678 2,652 2,736Gross capital expenditures 8,224 8,053 7,501 6,891 6,462 6,765 6,320 6,584 6,381 7,238Net capital expenditures 3,412 3,487 2,569 2,072 1,813 2,599 2,060 2,836 2,362 3,251Balance sheet a s of dec 31Non-current assets 43,949 44,241 44,059 44,530 41,308 42,353 42,046 43,360 42,907 43,200 thereof property, plant and equipment

and intangible assets 41,811 41,816 41,541 42,027 39,509 39,976 39,855 41,081 40,430 40,861 thereof deferred taxes 1,404 1,548 1,461 1,471 1,173 1,692 1,644 1,800 1,556 1,301Current assets 8,945 8,284 7,732 7,473 5,995 5,840 6,483 5,080 4,194 4,416 thereof cash and cash equivalents 2,861 2,175 1,703 1,475 1,470 879 1,549 295 305 765Equity 14,912 14,978 15,126 14,316 13,066 12,155 10,953 9,214 7,675 7,067Equity ratio (%) 28.2 28.5 29.2 27.5 27.6 25.2 22.6 19.0 16.3 14.8Non-current liabilities 26,284 25,599 24,238 24,762 23,359 23,161 25,612 26,319 27,963 29,440 thereof financial debt 18,066 17,110 16,367 16,394 14,730 14,083 16,228 17,165 18,310 19,045 thereof retirement benefit obligations 3,164 3,074 1,981 1,938 1,736 1,649 1,594 1,514 1,414 1,341Current liabilities 11,698 11,948 12,427 12,925 10,878 12,877 11,964 12,907 11,463 11,109 thereof financial debt 1,247 1,503 1,984 2,159 1,780 2,770 1,834 2,716 1,664 1,231Net financial debt 16,362 16,366 16,592 16,939 15,011 15,943 16,513 19,586 19,669 19,511Total assets 52,894 52,525 51,791 52,003 47,303 48,193 48,529 48,440 47,101 47,616r ail Performance figuresPA SSENGER TR ANSPORT

Passengers (million) 2,235 2,213 1,981 1,950 1,908 1,920 1,835 1,854 1,785 1,695 Long-distance transport 131 131 125 126 123 123 119 120 119 115 Regional and urban transport 2,104 2,082 1,856 1,824 1,785 1,797 1,717 1,735 1,667 1,580Volume sold (million pkm) 88,746 88,433 79,228 78,582 76,772 77,812 74,792 74,788 72,554 70,260 Long-distance transport 36,777 37,357 35,565 36,026 34,708 35,457 34,137 34,458 33,641 32,330 Regional and urban transport 51,969 51,076 43,663 42,556 42,064 42,355 40,654 40,331 38,913 37,930FREIGhT TR ANSPORT

Freight carried (million t) 390.1 398.7 411.6 415.4 341.0 378.7 312.8 307.6 274.6 295.3Volume sold (million tkm) 104,259 105,894 111,980 105,794 93,948 113,634 98,794 96,388 88,022 89,494INFR A STRUCTURE

Train kilometers on track infrastructure (million train-path km) 1,035 1,039 1,051 1,034 1,003 1,043 1,050 1,016 998 1,001 thereof non-Group customers 247 231 220 195 170 162 147 128 110 88

emPloyees (fte )Average 293,765 286,237 282,260 251,810 239,888 240,008 231,356 228,990 220,343 229,830At year end 295,653 287,508 284,319 276,310 239,382 240,242 237,078 229,200 216,389 225,632

10-year summary

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Deutsche Bahn AG Potsdamer Platz 2

10785 BerlinGermany

www.deutschebahn.comD

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Documents

Deutsche Bahn · Revenues comparable 39,165 39,293 –128 – 0.3 Profit before taxes on income 1) 876 1,525 – 649 – 42.6 Net profit for the year 1) 649 1,459 –810 – 55.5