ÖBB Annual Report 2025

Consolidated Financial Statements 208 Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 16 rail infrastructure network, such as acquisition cost, material and personnel expenses, directly attributable fixed and varia- ble overhead, the present value of obligations resulting from demolition, dismantling and removing the asset, restoration of sites, and borrowing costs directly attributable to qualifying assets. VAT charged by suppliers with a subsequent entitle- ment to input tax deduction is not included in cost. Leased property, plant and equipment are recognized at the lower of the present value of the minimum lease payments or its fair value. Significant parts of an asset are capitalized separately if they have different useful lives than the rest of the asset. This is not the case if their acquisition cost is insignificant in relation to the entire acquisition costs for the item. Property, plant and equipment and investment property are depreciated on a straight-line basis over the estimated useful life, and depreciation is recognized in the line item depreciation and amortization in the Consolidated Income Statement. Expenses incurred in the carrying amount of an item of property, plant and equipment during its creation are shown as “Assets under construction.” Additional fixtures in third-party buildings are also depreciated over their estimated useful life or their contractual term if shorter. The economic useful lives for financial years 2025 and 2024 are as follows: Years Buildings Substructure 20–150 Power plants 80 Tunnels 80 and 150 respectively Railway tracks 100 Other substructures 20 and 80 respectively Superstructure 5–80 Roadbed and track 35–50 Security and telecommunications equipment 5–30 Rolling stock 5–50 Technical equipment and machinery High-voltage and lightning equipment 5–50 Tools and equipment 4–20 Machinery 3–20 (py: 3–15) Other plant, furniture and fixtures 1–15 Under IFRS 16, the right-of-use asset is amortized on a straight-line basis over the term of the lease or over a shorter economic useful life if applicable. The following useful lives were applied in the 2025 and 2024 financial years: Years Rights of use for land and buildings 1–42 Rights of use for rolling stock 1–10 Rights of use for technical equipment and machinery 1–14 Rights of use for other plant, furniture and fixtures 3–30 (py: 3–7) Residual carrying amounts and remaining useful lives are reviewed each year as of the reporting date. Costs for maintenance measures and repairs are expensed as incurred, whereas replacements, expansion and value-im- proving capital expenditures are capitalized. The distinction between maintenance measures and repairs that are expensed immediately and capital expenditures that are capitalized is based on the rules of IAS 16 “Property, Plant and Equipment” and accounting principles derived therefrom for Group-specific circumstances. The cost and accumulated depreciation and amortization of assets sold or retired are removed from the accounts, and resulting gains or losses are recognized in other operating income or expenses. The useful lives and the methods of depreciation presented above are also applied to assets presented in the line item “Investment property.” Asset-related subsidies (Investment grants) Government grants Grants (investment grants) provided to the ÖBB Group are recognized in the Statement of Financial Position when it is certain that the grant will be received and all attached conditions will be complied with.