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chairman’s letter
DR. RüDIGER GRUBE
CEO and Chairman of the Management Board
of Deutsche Bahn AG
Dear ladies and gentlemen,
We can finally look back on a good, but at the same time eventful first half of 2010. At the beginning of the year we were
confronted with the worst weather conditions seen in the past ten years – and now in the summer we are facing the hottest
recorded temperatures in 100 years. These extreme weather conditions posed great challenges to the availability of our
long-distance trains – especially our ICE trains – and resulted in heavy criticism from our customers and the general
public. We have taken all necessary measures to ensure stable operations and to keep our service promise to our customers.
Financially, the recovering global economy enabled the previously heavily affected freight transport and logistics businesses
to record a significant upswing in performance. This not only benefited DB Schenker Rail and DB Schenker Logistics,
it also supported the business units in the infrastructure area. Passenger transport showed a stable development.
These favorable trends are reflected in both our revenue and profit figures: as of June 2010 DB Group revenues rose
by more than € 1.8 billion to about € 16.1 billion, or 12.8 percent more than the same year-ago figure.
We were even able to improve our operating profit (adjusted EBIT) by 26 percent to € 846 million. This gain was not
only generated by additional volumes sold. The improvement was also due to measures we launched in 2009 to improve
our cost structures as part of the Group’s reACT program, which we are continuing to implement successfully.
Despite all of the uncertainties associated with the outlook for future economic development, we can say for sure that
we are cautiously optimistic because we are back on track for growth – not only in terms of profits, but also in the development
of our business. The acquisition of Arriva ensures that we will be able to successfully assert our position during the
consolidation process in the European transport markets. Together with Arriva we will be present in a total of 12 important
European markets. Arriva’s shareholders approved our offer on June 17, 2010. We anticipate that, pending approval by
European cartel authorities, the transaction will be concluded at the end of August 2010.
Our business success means that we can make further advances in the area of capital expenditures, for example to
improve customer service and quality. Mid-term planning forsees total capital expenditures of € 41 billion to be made just
in Germany alone. Approximately € 31 billion of this amount are earmarked for infrastructure projects, while most of the
remaining € 10 billion will be used to procure new vehicles. Furthermore, our new organizational structure in the area of
technology has prepared the foundation for higher quality and even more reliable operations.
During the past six months we have launched groundbreaking processes to bring about change and further develop
the areas of customer care, quality, technology, capital expenditures, and also the market. The bottom line is that we are
making good progress for our customers, our employees and in keeping with the responsibilities associated with 175 years
of railway history in Germany.
Sincerely yours,