Costs in the Netherlands decreased by €72 million. Despite the inflow of new trains and investments in IT solutions, resulting in higher depreciation costs, NS has managed to reduce the costs it can influence directly, by taking a series of measures. The launch of new franchises pushed up the costs in the United Kingdom and Germany by €495 million and €229 million respectively. In the United Kingdom, the Group received a contribution of €330 million for its Greater Anglia franchise, which was deducted from the franchise fee received.
The company also recognised a one-off expense of €2,332 for impairment and a provision for onerous contracts. This expense largely results from the impact of COVID-19 on our future operations. In the Netherlands, we recognised an impairment for our main rail network franchise of €1,562 million, which is a direct consequence of the lower projected revenue from passenger transport over the period through 2024. Abellio recognised an expense of €702 million for impairment of assets in the United Kingdom and for a provision related to the expected termination of several franchise contracts and their conversion into a new type of contract in the United Kingdom under which the UK government will assume most of the turnover and cost risks. In Germany, we recognised an impairment of assets of €68 million, which equals the amount by which the estimated recoverable amount of the German franchises falls short of their carrying amount. The expected future income is insufficient to cover all costs.
(in millions of euros)
Wages, salaries and social security charges
Other personnel expenses
Staff hired in
Depreciation, amortisation and impairments
Use of raw materials, consumables and inventories
Own capitalised production
Subcontracted work and other external costs
Infrastructure levies and franchise fees
Other operating expenses
Total operating expenses before exceptional items
Impairments and provision for onerous contracts
Total operating expenses