Annual Report 2025 – ÖBB-Infrastruktur AG

ÖBB-Infrastruktur Aktiengesellschaft Consolidated Management Report | Consolidated Financial Statements 167 2. Consolidation principles and basis of consolidation Consolidation principles Reporting date All fully consolidated companies included in the consolidated financial statements have the same reporting date of 31.12. Foreign currency translation Foreign currency translation is based on the concept of functional currency. The functional currency of all subsidiaries included in the consolidated financial statements is the respective national currency. The consolidated financial statements are prepared in euros, the functional currency of the parent company. Since all subsidiaries use the euro as their functional currency, currency translation was not required when preparing the consolidated financial statements. Foreign currency transactions are initially converted by the Group companies into the functional currency at the spot rate applicable on the date of the transaction. Monetary assets and liabilities denominated in a foreign currency are converted into the functional currency on each reporting date using the spot rate on the reporting date. Translation differences resulting from financial assets and financial liabilities are recognised in financial expenses or financial income. Non- monetary items that are measured in terms of historical cost in a foreign currency are converted using the exchange rates as of the dates of the initial transactions. Non-monetary items that are measured at fair value in a foreign currency are converted at the rate that is valid at the date when the fair value was determined. Consolidation Subsidiaries (capital consolidation) Subsidiaries are entities controlled by the Group. The Group controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power of control over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date the Group obtains control until the expiration of control. Accordingly, the results of operations of the businesses acquired or sold during the reporting year are included in the consolidated statement of comprehensive income from the date of acquisition or until the date of disposal respectively. If the Group loses control over a subsidiary, the assets and liabilities of the subsidiary and other components of equity are de-recognised. All subsidiaries within the ÖBB-Infrastruktur Group apply the accounting policies uniformly. Business combinations Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at fair value at the acquisition date, and the non-controlling interest in the company being acquired. For each business combination, the acquiring party measures the shares of non-controlling shareholders in the acquired company at the corresponding share of the identifiable net assets of the acquired company. Acquisition related costs incurred as part of the business combination are recognised as an expense and reported in other operating expenses. When the Group acquires a business, it assesses the appropriate classification and designation financial assets acquired and liabilities assumed in accordance with the contractual terms, economic circumstances and conditions prevailing at the acquisition date. This also includes a separation of embedded derivatives in underlying contracts. In the case of business combinations are achieved in stages, the acquiring party's previously held equity interest in the acquired company is remeasured at fair value at the acquisition date and the resulting gain or loss is recognised in profit or loss. Any agreed contingent consideration is recognised at fair value at the acquisition date. Subsequent changes in the fair value of a contingent consideration representing an asset or liability are recognised either in the statement of profit or loss or in other comprehensive income in accordance with IFRS 9 “Financial Instruments.” Contingent consideration classified as an equity instrument is not remeasured, its subsequent settlement is accounted for in equity. Goodwill is initially recognised at cost, which is measured as the excess of the consideration transferred and the amount of non-controlling interests over the identifiable assets acquired and liabilities assumed. When this consideration is less than the fair value of the net assets of the subsidiary acquired, the difference is recognised in the consolidated statement of profit or loss. After initial recognition, goodwill is measured at cost less accumulated impairment losses.