ÖBB Annual Report 2025

257 Consolidated Financial Statements Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 65 The provision for asset retirement costs relates to future expenses in connection with the demolition, dismantling, and removing of assets and the restoration of sites. These are railroad lines that have already been decommissioned or will be decommissioned in the near future, the carrying amounts of which have already been reduced to zero and therefore the changes in provisions are recognized in profit or loss. This provision was recognized only for routes whose decommissioning is sufficiently certain. The provision for demolition cost and similar obligations includes contractually agreed obligations to remove existing legal and technical encumbrances and similar obligations in connection with land sales already completed. The obligations from personal liability insurance for retirees are calculated on the basis of biometric calculation principles and discounted using a discount rate of 3.42% (py: 2.46%). The provision for impending losses is mainly made up of onerous contracts in the individual business units from the Freight Traffic division and Technical Services and Passenger Transport. Miscellaneous other provisions include provisions for litigations. Provisions for litigations were measured based on man- agement’s best estimate and based on all litigation risks that were identifiable when the financial statements were prepared. The provision relates to numerous litigations arising from the company’s business operations. Among other things, this item includes provisions for the repayment of infrastructure usage charges in connection with ongoing regulatory proceed- ings. For the charges for the traction power supply network for the years 2016–2023, the minimum access package for the 2011–2017 network timetable periods, and the traffic stations for the 2012–2023 network timetable periods pursuant to Section 68a of the Railways Act, a market-wide review of the procedures was completed under the supervision of Schienen-Control GmbH and the Schienen-Control Commission. The provision recognized for this purpose as of December 31, 2024, has been largely utilized. The change in provisions for reclaims in connection with regulatory proceedings is recognized in sales revenue. Since disclosure of information under IAS37.92 could seriously affect the corporate group’s position in these proceedings, no disclosure is made about the amount of the provision or any contingent liabilities beyond that amount. In this regard, please refer to the section “Use of Estimates and Discretionary Judgments” in Note3. Anticipated cash outflow for the provisions Where applicable, non-current provisions are discounted to maturity using interest rates of 2.3 to 8.5% (py: 2.4 to 9.2%). Adjustments due to changes in the discount rate were insignificant. Of the other provisions, EUR 529.2 million (py: EUR 458.4 million) are classified as non-current. The anticipated cash out- flow for these provisions is after 2026. The provisions classified as current are expected to result in an outflow of funds in 2026, with the provisions for litigations and parts of the provisions for environmental protection measures and asset re- tirement commitments, demolition costs and similar obligations being classified as current. If there are uncertainties about the due date, the provisions concerned were mainly classified as current (this mainly relates to the remaining other provi- sions).