Value management DB Group

DB Group as well as the individual business units, are managed using target returns, taking the nature and risk of the operational business into account.

Our financial management policies are designed to achieve a sustainable increase in our corporate value.

Eight DB Group business units are combined under the management of DB AG, and are included in the DB Group’s value management program.

The economic aspect of value management is determined by the output quantities in the balance sheet and profit/loss calculations. The adequacy of the results can only be evaluated in the context of the assets to be financed and the capital costs. The goal is to guarantee our ability to invest in the core business on an ongoing basis. In determining the target values for value management, competitors are compared to the relevant DB business units (peer group comparison).

We use the Return on Capital Employed or ROCE as the central unit of measure for the development of our group portfolio as well as for the allocation of investment. Due to the continuing low interest rate level, we adjusted the ROCE in 2018.

Another performance figure for our value management is the redemption coverage. In 2016, the definition of redemption coverage was adjusted retrospectively. To determine the redemption coverage as a ratio of operating cash flow and debt, cash flow is now more leasing adjusted as well as adjusted for tax payments. The debt now include not only net financial debt and lease liabilities, but also pension liabilities. The aim of the adjustment is a higher agreement with the methodology of the rating agencies as well as a better controllability of the DB Group's debt. Adjusted to the new definition, the new DB2020+ target value  for redemption coverage is ≥ 25%.

Value management € million or % 2012 2013 2014 2015 2016 2017 2018
  Capital Employed 32,642 33,086 33,683 33,459 33,066 35,093 36,657
ROCE 8.3 6.8 6.3 5.3 5.9 6.1 5.8
Redemption coverage 22.2 20.8 20.3 19.0 18.1 18.7 17.6
Net financial debt/EBITDA (multiple) 2.9 3.2 3.2 3.7 3.7

3.8

4.8