Cash flows and financial position

Borrowing funds for investments

The following table is an adjusted and condensed cash flow statement.

NS invested €486 million in 2024 (2023: €541 million). This sum was mainly invested in purchasing and upgrading trains, as well as expanding, maintaining and improving the sustainability of workplaces, stations and offices, improving the retail chains at the stations and investing in IT to support and implement the train service and customer contact. Loans have been taken out in connection with these investments.

The net acquisition/disposal of non-current financial assets mainly concerns the on-balance purchase (2023: on-balance sale) of investments of temporarily surplus cash in money market funds. The 'other' balance mainly relates to the completion of discontinued operations.

The operating cash flow from operating activities is €246 million (2023: €218 million) and, as in previous years, insufficient to cover capital expenditure. The operating cash flows from operating activities, the capital expenditure and the development of the debt position in the period 2019-2024 are presented in the following chart, in millions of euros.

The composition of the net debt is as follows:

NS has continued to invest in recent years, in spite of the drop in revenue. Over the period 2020-2024, cumulative capital expenditure exceeded the operating cash flows from operating activities by €1.3 billion. This is the key factor that led to an increase in net debt to €1,093 million (2023: €973 million) and an increase in gross debt to €2,574 million (2023: 2,054 million). The sharp increase in the debt position was partly foreseen given the extensive investment programme, but turned out higher due to low operating results. If NS is to continue investing in the mobility of the future, it is important to significantly increase the financial operating results and resulting cash flows from operating activities.

Creditworthiness remains stable

Standard & Poor’s (S&P) is an independent credit rating agency that has assessed NS’s creditworthiness for quite a few years now. One important indicator is the ratio between cash flows from operating activities and the company’s debt position. The fact that the Dutch State is the shareholder of NS is a positive factor in S&P’s assessment of our creditworthiness. In the most recent assessment (June 2024), the rating was an A with a stable outlook, unchanged from the assessment in July 2023.

Balance sheet

Below is an adjusted and condensed balance sheet of NS.

NS’s assets include trains, inventories, software, company buildings and land for train maintenance activities and the accommodation of staff. In addition, NS owns properties that are leased out to third parties, for example to accommodate retail outlets at our stations. NS’s liabilities include private loans to banks, lease obligations and creditors.

The size of the HRN concession impairment was €1,173 million at year-end 2024 (€1,197 million at year-end 2023). Combined with the related deferred tax asset, the impact on the balance sheet total is -€871 million (year-end 2023: -€888 million).