ÖBB Annual Report 2025

Group Management Report 72 Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 29 Risk definition and risk management with respect to financial instruments ÖBB-Holding AG carries out financial transactions on behalf of and for the account of Group companies – upon their instruction and only with their consent. Commodity hedging instruments are an exception. ÖBB-HoldingAG has created a risk-oriented control environment. It includes guidelines and processes for risk assessment, and for approving, reporting on, and monitoring financial instruments. The protection of Group company assets is the first priority for all financial activities. All of this is the task of the Group Finance department. An important part of its activities is the identification, measurement, and limitation of financial risks. Risk limitation does not mean absolute elimination of financial risks, but reasonable and transparent control of quantifiable risk items within a specific framework for activities that have to be agreed with the respective Group companies. One Group directive prohibits the issue or holding of financial instruments for speculative purposes. In addition, the permissible financial transactions have been defined by Group directives. The most important financial risks are described in more detail below. Liquidity risk The primary aim of ÖBB Group in financial terms is to secure the necessary liquidity. Liquidity risk means the risk that a company might have difficulties meeting its obligations arising from financial liabilities it has entered into. These can be settled by payment or delivery of another financial asset. One of the main tasks of the Group Finance department of the ÖBB Group is therefore to ensure the liquidity of all Group companies. This task is fulfilled through liquidity planning, agreeing sufficient credit lines, and adequately diversifying creditors. Interest rate risk Risks arising from changes in market interest rates may affect the financial result of the ÖBB Group due to the structure of its Statement of Financial Position. The Group therefore strives to limit the influence of possible market interest rate fluctuations on results to a level agreed with all Group companies. Derivative financial instruments for managing interest rate risks are transacted on the basis of portfolio analyses and recommendations by Group Finance, and of corresponding decisions by Group companies. No new derivatives were employed from 2019 to mid-2022. This is because the majority of financial assets and financial liabilities have fixed interest rates. In mid-2022, three fixed interest rate swaps with a fair value of EUR196.0 millionwere concluded as part of variable- rate financing. For more information, see the Notes to the Consolidated Financial Statements, Item 29.2.a. Currency risk ÖBB Group companies are not exposed to any material currency risks. Most finance agreements are denominated in euros. Only one company in the Czech Republic accounts for a very small proportion of its financing in local currency. There are no relevant currency risks from terminated CBL transactions. The contractual liabilities in foreign currencies are offset by corresponding assets and receivables with matching volumes and maturities in the same amounts. Derivative instruments for managing currency risks are transacted on the basis of portfolio analyses and recommendations by Group Finance, and on corresponding decisions by Group companies. Credit risk Counterparty credit risk describes the potential loss from failure by business partners to honor their financial commitments. The risks relate primarily to money market transactions, trade receivables, investments, and positive present-value commodity derivatives. Compliance with the limits underlying the counterparty credit-risk management system, which are individually assigned to each financial partner, is checked daily. | MR29