The Divisions.

Rail Vehicle Systems Division

Incoming orders for the Rail Vehicle Systems division decreased by -13.2% year-on-year from € 4,016.7 million to € 3,485.1 million. The decrease resulted from all regions. Decreasing demand had a substantial impact in the Asia/Pacific region in particular, especially in business in India. By contrast, the order book, which stood at € 3,721.4 million as of December 31, 2020, was up on the prior-year level of € 3,573.0 million, driven mainly by the positive order situation, especially in the second half of the year.

The Rail Vehicle Systems division saw a decrease in revenues of -8.7% to € 3,336.8 million (2019: € 3,656.1 million), primarily due to Covid-19; contrary to the forecast of a significant decline, it was down only moderately year-on-year and therefore better than forecast. Of this, OE business accounted for around 55% of revenues (2019: 58%) and aftermarket business accounted for 45% of revenues (2019: 42%). The revenue trend was primarily due to decreased OE volume in all regions. This was mainly attributable to mass transit (light rail vehicles and metro cars) in the Europe region and to the freight business in the North America region. The Asia/Pacific region also saw a decrease in revenues in the high-speed trains and locomotives business that could not be compensated by higher revenues than the previous year in the metro business, particularly in China.

The Rail Vehicle Systems division’s absolute EBITDA fell by -6.2% to € 764.2 million (2019: € 814.9 million) due to volume factors. As a result of high-margin earnings contributions from the aftermarket business (service business) and effects from the Covid-19 action program, it was, by contrast, possible to achieve a moderatly higher EBITDA margin on sales revenues of 22.9% compared to the previous year’s level of 22.3%. The margins achieved exceeded both the forecast of a significant decline made in the 2019 Annual Report and the adjusted forecast of a slight decline made in the half-year financial report.

The Rail Vehicle Systems division’s EBIT also fell by -8.6% to € 636.6 million in 2020 (2019: € 696.7 million), mainly due to volume factors. The EBIT margin of 19.1% of sales revenues confirmed the previous year’s level (19.1%).

The Rail Vehicle Systems division’s capital expenditure of € 109.0 million in 2020 (2019: € 120.9 million) focused primarily on capacity expansion of high-growth product groups, automation and, additionally, replacement and expansion projects. Capital spending of € 33.2 million at the Munich site in the previous year as part of the “north sector” sale-and-lease- back transaction (SLB) was deducted from capital expenditure in 2019 as a result of the sale and consequently eliminated. At € 127.7 million, depreciation and amortization was moderately up on the previous year (2019: € 118.2 million).

R&D costs in 2020 came to € 202.6 million, representing a € -7.4 million or -3.5% decrease on the previous year (2019: € 210.0 million). In contrast, the R&D ratio was higher than in the previous year at 6.1% due to the disproportionate decrease in revenue (2019: 5.7%). Development activities concentrated on solutions for increasing transportation capacity, eco-friendliness, availability, life-cycle management and digitalization.

As of December 31, 2020, the Rail Vehicle Systems division had 16,074 employees and was thus almost (-0.1%) at the prior-year level of 16,094 employees (including temporary staff).


in € millions 20202019
Incoming orders3,485.14,016.7
Order book (Dec.31)3,721.43,573.0
EBITDA margin (as % of revenues)22.9% 22.3%
Operating EBITDA margin (as % of revenues)22.9%22.3%
EBIT 636.6696.7
EBIT margin (as % of revenues) 19.1%19.1%
Operating EBIT margin (as % of revenues)19.1%19.1%
Capital expenditure (before IFRS 16 and acquisitions)109.0120.91)
Depreciation, amortization
and impairments
R&D costs202.6210.0
Employees (as at Dec. 31., incl. temporary staff)16,07416,094

1) Adjusted for Munich headquarters “north sector” SLB (€ 33.2 million)

Commercial Vehicle Systems Division

The Commercial Vehicle Systems division recorded a -3.2% decline in incoming orders to € 2,954.2 million (2019: € 3,050.7 million) in fiscal 2020. Adjusted for currency and acquisition effects, the decline amounted to -2.7%. This change is due to Europe and North and South America. On the other hand, there was significant growth year-on-year in the Asia/Pacific region, particularly in China. The positive demand in the second half of 2020 is also reflected in the order book, which increased by 11.9% year-on-year to € 1,269.0 million as of December 31, 2020 (2019: € 1,134.2 million).

Revenues fell by -14.0% to € 2,819.4 million (2019: € 3,280.2 million). This decrease was attributable to a decline in truck production worldwide and the related significant decrease in revenue in the OE business, particularly in North America and Europe, which could not be offset by the Asia/Pacific region. OE customers’ share of the division’s total revenues fell by 1.4 percentage points year-on-year. This fall plus robust aftermarket revenues resulted in a higher aftermarket share of total revenues of 27.1% (2019: 25.7%). The acquisition of R.H. Sheppard made during the fiscal year added a further € 52.0 million to total revenues in the Commercial Vehicle Systems division. Adjusted for currency and acquisition effects, revenues were down -14.0% on the previous year. As forecast, the division’s performance was thus significantly down on the previous year.

In absolute terms, due to lower volumes, EBITDA fell by -24.3% year-on-year to € 381.2 million with a reported EBITDA margin of 13.5% of revenues compared with 15.4% in the previous year. The acquisition of R. H. Sheppard contributed negative EBITDA of € -1.7 million in 2020. The operating EBITDA margin in the previous year, i.e. adjusted for Wülfrath restructuring expenses, was, by contrast, 16.0%. The margin generated in the 2020 fiscal year was significantly down on the prior-year level and thus in line with the forecast. Also with respect to EBIT, the Commercial Vehicle Systems division saw a decline of € -138.7 million or -37.1% to € 235.1 million in 2020 (2019: € 373.8 million). This in turn caused the reported EBIT margin to decline by 310 basis points to 8.3% (compared with 11.4% in 2019), so that the operating EBIT margin fell by 400 basis points (2019: 12.3%). This is due not only to the decrease in volume but also to increased depreciation and amortization partly as a result of increased investing activities. In fiscal 2020, R. H. Sheppard made a negative contribution of € -9.1 million to EBIT.

In 2020, the Commercial Vehicle Systems division’s capital expenditure increased by € 30.8 million year-on-year to € 210.1 million. As in the previous year, major investments were made in the global provision of supplier tools. The year-on-year increase is primarily due to the expansion of manufacturing capacity at our North American site in Bowling Green and to the steering systems business in Thailand. In addition, investments were made in connection with our GSBC product platform and for the integration of R. H. Sheppard. Depreciation and amortization in the Commercial Vehicles Systems division increased by € 16.2 million year-on-year to € 146.1 million mainly as a result of increased investing activities (2019: € 129.9 million).

The division’s R&D costs rose to € 194.0 million in the 2020 fiscal year (2019: € 187.0 million), partly as a result of intensified ADAS/HAD and steering development activity. The resulting R&D ratio also increased from 5.7% in the previous year to 6.9% in 2020. Research and development activities focused on the megatrends of road safety, automated driving, emission reduction, e-mobility and connectivity.

As at December 31, 2020, the Commercial Vehicle Systems division had 12,871 employees (2019: 12,084), that is 787 more employees (6.5%) than on December 31, 2019. This is primarily due to the acquisition of R. H. Sheppard with 677 employees.


in € millions20202019
Incoming orders2,954.23,050.7
Order book (Dec. 31)1,269.0 1,134.2
EBITDA 381.2503.7
EBITDA margin ( as % of revenues)13.5%15.4%
Operating EBITDA margin (as % of revenues)13.5%16.0%
EBIT 235.1373.8
EBIT margin (as % of revenues)8.3%11.4%
Operating EBIT margin (as % of revenues) 8.3%12.3%
Capital expenditure (before IFRS 16 and acquisitions)210.1179.2
Depreciation and amortization146.1129.9
R&D costs194.0187.0
Employees (as at Dec. 31, incl. temporary staff)12,87112,084