ÖBB Annual Report 2025

Group Management Report 74 Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 31 In view of the possible procurement strategies and in order to diversify risk, diesel price hedging was approved and implemented for Österreichische Postbus AG in the amount of 70% of the annual fuel requirement for the delivery year 2026 and in the amount of 35% of the annual fuel requirement for the delivery year 2027, and for ÖBB-Produktion GmbH in the amount of 60% of the annual fuel requirement for the delivery year 2026 and in the amount of 30% of the annual fuel requirement for the year 2027. The target of the hedging policy pursued is to stabilize the cost of materials for the budget period and to minimize earnings and cash flow volatility for Österreichische Postbus AG and ÖBB-ProduktionGmbH, and thus for the ÖBB Group. The yardstick for measuring the success of hedging activities for the raw material “diesel” is the respective budget price and not the achievement of the highest possible offsetting of the purchase price at monthly level. The possible impacts of the war in the Middle East are discussed in Note 35 to the Consolidated Financial Statements. C. Report on Research and Development The further development of the overall system of mobility, logistics, and infrastructure plays an important role in the ÖBB Group. As one of the largest users of technology in Austria, the ÖBB Group is committed to demand-oriented R&D activities. Thet are intended to increase the productivity, capacity, quality, and resilience of the railroad system and make a positive contribution to climate change mitigation. Within the ÖBB Group, research, technology, and innovation is divided into the areas of asset/technology innovation and product/service innovation. Both types of innovation are reflected in the Group- wide integrated RTI policy. This emphasizes the added value of a holistic approach to innovation, from infrastructure assets and vehicle issues to operational management and customer focus. All phases are considered – from the initial concept to the roll-out. In order to ensure further development of the railroad system, the ÖBB Group is involved in numerous national and international R&D programs and projects. For example, ÖBB has been a program partner in Europe’s Rail Joint Undertaking (EU-Rail) – Europe’s largest R&D program for the railroad system – since 2021. EU-Rail is an eight-year program in which railroad companies such as ÖBB are working together with industry, research partners and the European Commission. The target of the program is to develop and implement specific projects to increase capacity for passenger and goods transport and to promote digitalization and decarbonization. The consequences are increased efficiency and cost reductions aimed at achieving a modal shift to rail and ensuring the competitiveness of the railroads. These projects ( Flagship Projects, FP ) include, for example: – FP1: development of a Europe-wide standardized Traffic Management System (TMS); – FP2: developments for digital and automated rail operations; – FP3: integrated asset solutions for improved maintenance (e.g. further development of the train running checkpoints); – FP4: sustainable and green solutions for vehicles and infrastructure, – FP5: testing of digital automatic coupling, including shunting automation at shunting nodes (within the Full Digital Freight Train Operation, FDFTO, project) and solutions for automated and autonomous shunting, and – FP6: cost-effective infrastructure solutions for regional railroads. One Group-wide priority is the Digital Automatic Coupling (DAK), which is a basic prerequisite for making rail freight transportation more attractive and is intended to increase the capacity of the railroad system. In addition to the ÖBB Group’s participation in the EU Rail Flagship Project 5 “TRANS4MR,” the ÖBB Group manages the “European DAC Delivery Programme” (EDDP). As a result, ÖBB is playing a formative role in Europe” regarding the DAC. Following the development work on the new coupling system, including additional applications, ÖBB plans to deploy an innovative demonstrator train in 2026. The target is to test its use under real operating conditions on various routes and sites within Austria. Preparations for this began in the third quarter of 2025 (conversion). Within the ÖBB Group, work on the DAK is carried out in close cooperation between the Group companies Rail Cargo Austria AG, ÖBB-Infrastruktur AG, ÖBB-Produktion GmbH, and ÖBB-Technische Services GmbH, and coordinated by ÖBB-Holding AG. “Rail4Climate” (R4C) is a program developed by ÖBB-Holding AG together with initiative partners from industry, science and stakeholders. The awards from this rail-specific, national innovation program were communicated in June 2025. Two projects with ÖBB participation were also successfully launched in October: for example “SARI30” – self-driving freight wagons and vehicle-based switch inspection. The main focus of the BMIMI-led program is on transferring European and national research results into concrete prototypical testing. This should take place under operating conditions that are as close to reality as possible, with the aim of bringing the respective technologies as close as possible to market and roll- out maturity. Further funding awards for projects involving ÖBB are expected in the second half of 2026 as part of the second call for proposals. | MR31