ÖBB Annual Report 2025

281 Consolidated Financial Statements Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 89 According to the subsidy agreement 2022 to 2027, the federal government shall bear 80% of the annual investments in expansion and reinvestments according to the Master Plan 2022-2027 (with the exception of the Brenner Base Tunnel) for which subsidies are granted in the form of an annuity allocated over 30 years. For the Brenner Base Tunnel project, the federal government provides a 100% subsidy in the form of an annuity allocated over 50 years. The interest rate corre- sponds to the rate respectively applicable for long-term financing measures of ÖBB-Infrastruktur AG. The share of the investments for expansion (with the exception of the Brenner base tunnel) and reinvestments to be assumed by the federal government is continuously reviewed and adjusted as necessary to the current requirements for future subsidies. The federal government also grants a subsidy for inspection and maintenance, elimination of malfunctions and repair of the railway infrastructure operated by ÖBB-Infrastruktur AG. The amount of the grant is fixed with consideration of the liquidity requirements based on the business plan of ÖBB-Infrastruktur AG, the limit of the total subsidy prescribed by Section 42 of the Austrian Federal Railways Act and the objectives (performance and output objectives) according to the subsidy agreement pursuant to Section42 (1) of the Austrian Federal Railways Act. Changes to the functionality and/or scope of the rail infrastructure to be operated by ÖBB-Infrastruktur AG will result in an increase or decrease in the subsidy. ÖBB-Infrastruktur AG must therefore reach agreement with the Federal Ministry of Innovation, Mobility and Infrastructure and Federal Ministry of Finance before making such changes. In the year 2025, a subsidy of EUR 1,464.3 million (py: EUR 1,408.4 million) was granted for expansion and reinvestment based on the valid subsidies agreement for 2022 to 2027 in accordance with Section42 (2) of the Federal Railways Act. EUR 463.9 million (py: EUR 464.3 million) was granted for inspection, maintenance and fault clearance. ÖBB-Infrastruktur AG made investment grants of EUR 300.0 million (py: EUR 150.0 million) to BBT SE for the construction costs of the Brenner Base Tunnel. The payments contractually agreed with the state of Tyrol as part of the acquisition of shares and the payments made by the federal government to ÖBB-Infrastruktur AG in connection with the cross-financing of the road amounted to EUR 58.0 million (py: EUR 55.5million). Infrastructure operation and apprenticeship costs ÖBB-Infrastruktur AG must submit an annual rationalization and savings plan with a forecast to the Federal Ministry of Innovation, Mobility and Infrastructure and Federal Ministry of Finance. The agreement on the subsidy pursuant to Section 42 (1) of the Austrian Federal Railways Act is based in particular on the six-year business plan to be prepared by ÖBB-Infrastruktur AG pursuant to Section42 (6) Austrian Federal Railways Act, which comprises a detailed description of the measures required to fulfill its tasks of providing a secure railway infrastruc- ture corresponding to requirements, including time schedules, budgets, rationalization plans and a forecast with respect to usage fees and other fees and charges. Pursuant to Section45 of the Federal Railways Act, the Federal Ministry of Innovation, Mobility and Infrastructure has entrusted SCHIG with monitoring compliance with the regulations issued by ÖBB-Infrastruktur AG under the subsidy agree- ment. This subsidy agreement defines the objectives to be achieved by ÖBB-Infrastruktur AG in connection with this subsidy pursuant to Section42 of the Austrian Federal Railways Act. The specific objectives to be achieved by ÖBB-Infrastruktur AG are categorized in particular in general, quality, safety and efficiency objectives agreed with consideration of the statutory tasks of ÖBB-Infrastruktur AG, and stipulated in the business plan agreed between the federal government and ÖBB-Infrastruktur AG pursuant to Section42 (6) of the Austrian Federal Railways Act. The compliance with the obligation for ÖBB-Infrastruktur AG to guarantee and constantly improve the quality and safety of the operated railway infrastructure, which results from the Federal Railways Act, is assessed by means of certain ratios in connection with the grant. Unless otherwise agreed between ÖBB-Infrastruktur AG and the federal government, the annual subsidy will be reduced by the portion of operating expenses incurred for railway infrastructure that is transferred to other operators or no longer operated by ÖBB-Infrastruktur AG, contrary to the provisions of the business plan pursuant to Section42 (6) Federal Rail- ways Act. The entire subsidies according to Section42 of the Federal Railways Act in 2025 amount to EUR 2,653.0 million (py: EUR 2,530.0 million). The subsidy for expansion and reinvestment investments in the amount of EUR 1,464.3 million (py: EUR 1,408.4 million) was increased by EUR 157.6million (py: EUR 159.3 million) to EUR 1,621.9 million (py: EUR 1,567.7 million) as a result of the investment measures carried out and in line with the devel- opment of interest rates in the income statement. The subsidy for operational management as well as inspection, maintenance, disposal and repair amounting to EUR 1,188.7 million (py: EUR 1,121.6 million) as reduced by a total of EUR 205.7 million (py: EUR 217.5 million) as a result of an improvement in operating business performance and more fa- vorable interest rate trends in the income statement. The subsidy in the amount of EUR 156.2 million (py: EUR 136.0 million)