ÖBB Annual Report 2025

Consolidated Financial Statements 224 Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 32 Use of estimates and judgment The preparation of the Consolidated Financial Statements requires the Board of Management to make estimates and as- sumptions that may affect the amounts of assets, liabilities, and contingent liabilities reported at the reporting date and the amounts of income and expenses of the period under review. Actual results may differ from these estimates. All esti- mates and assumptions are updated on a regular basis and are based on experience and other factors including expectations with respect to future events deemed to be reasonable under the given circumstances. When applying the accounting methods of the ÖBB Group, the Board of Management makes discretionary decisions and estimates, for example, in the application of hedge accounting, in the assessment of the transfer of relevant risks in lease transactions, in the assessment of the extent to which extension or termination options are exercised as lessee when assessing the term of leases, in the assessment of additional cost receivables from construction projects, and in the recog- nition and accounting of federal subsidies pursuant to Sections 41f of the Federal Railways Act. Additionally, as of the reporting date, the Board of Management made key assumptions concerning the future and identi- fied key sources of estimation uncertainty at the reporting date which bear a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities in the next financial year. The useful lives have been checked. The economic risk was properly taken into account by carefully measuring the provi- sions in the required amount. The adequacy of allowances was reviewed. The parameters for the impairment test of the cash-generating units have been updated in accordance with interest rates and the industry standard benchmarks. The insurance and financial mathematics determinations for the measurement of severance payments and anniversary bonuses were determined responsibly. Goodwill is capitalized exclusively on the basis of acquisition cost allocation reports prepared by external experts in accordance with IFRS 3. a. Employee benefit plans Obligations for severance payments and anniversary bonuses are measured by applying parameters such as the expected discount rate, long-term compensation increases, and staff turnover. If the development of the relevant metrics differs significantly from expectations, this can have material impacts on the provisions and, as a result, on the expenses for severance payments and anniversary bonuses of the ÖBB Group. In both financial years, the discount rate, the rate of compensation increase, and staff turnover were adjusted to the new circumstances for non-current personnel provisions (severance payments and anniversary bonuses). The impact of possible changes of metrics is disclosed in Note 26.1. b. Impairment losses and reversals of impairment losses Impairment tests of intangible assets and property, plant, and equipment are based on the business plans (budget 2026 and medium-term planning 2027 to 2031). These represent the future net cash flows expected by management resulting from the continued use of the assets. The net cash flows are discounted to the reporting date using discount rates. Factors such as lower revenue or rising expenses and the resulting lower net cash flows as well as changes in the discount rates used can therefore lead to impairments. The sensitivity analysis in the table below shows the under-/over-coverage of the CGUs in the event of a change in assump- tions: Sensitivity analysis of the impairment loss / write-up requirement CGU Change in assumptions Increase in the metric in EUR million Decrease in the metric in EUR million Assumptions in % points Cargo Intermodal Arverio Cargo Intermodal Arverio Interest rate +/-0.25%p -139.5 (py: -59.9) -13.5 (py: -12.9) 98.3 (py: 127.0) -23.5 (py: 62.9) 16.4 (py: 17.3) 126.3 (py: 139.6) Perpetuity EBITDA +/-2.5% -43.7 (py: 45.0) 9.2 (py: 10.9) 116.4 (py: 135.0) -124.2 (py: -47.1) -7.5 (py: -7.7) 106.7 (py: 130.8) The impairment test was based on the assumption that subsidies and grants will continue to be granted in the main markets of CGU Cargo and CGU Intermodal in the planning period for the purpose of shifting freight to rail, which will contribute to preservation of assets. For the carrying amounts of intangible assets and property, plant and equipment, see the schedule of assets in Notes 14 and 15. Further information on the effects of impairment losses and reversals of impairment losses can also be found in Notes 14 and 15. Information on the methodology of the impairment test, the structure of the cash-generating units, and the calculation assumptions is provided in Note3 in the section “Impairment of property, plant and equipment, intangible assets and investment property.”