Annual Report 2025 – ÖBB-Infrastruktur AG

ÖBB-Infrastruktur Aktiengesellschaft Consolidated Management Report | Consolidated Financial Statements 174 Derivatives Derivative financial instruments are measured at fair value. Changes in the fair value of derivative financial instruments are recognised in profit or loss or in other comprehensive income, depending on whether the derivative financial instrument is used to hedge the fair value of items in the Statement of Financial Position (fair value hedge) or the fluctuation of future cash flows (cash flow hedge). In the case of derivative financial instruments that hedge items in the Statement of Financial Position, changes in the fair value of the hedged risk and the derivative financial instrument are recognised in profit or loss. In the case of derivative financial instruments that qualify as cash flow hedges, changes in the fair value of the effective portion of the hedging instrument are recognised in equity through other comprehensive income (cash flow hedge reserve). The effects stated in the cash flow hedge reserve are recognised in profit or loss when the underlying transaction is recognised in profit or loss. Changes in the fair value of the ineffective portion of a hedging transaction involving derivative financial instruments that are not classified as hedging transactions are recognised in profit or loss immediately. The ÖBB-Infrastruktur Group makes use of hedge accounting. See Note29.3. for information about hedge accounting. Classification and measurement of financial liabilities Financial liabilities are measured at amortised cost (FLAC) or at fair value through profit or loss (FVTPL). A financial liability is classified at FVTPL if it is classified as held for trading or is a derivative. Financial liabilities (FLAC) are measured at fair value on initial recognition and at amortised cost using the effective interest method on subsequent measurement. Financial liabilities (FVTPL) are measured at fair value, and any gains or losses resulting from subsequent measurement are recognised in profit or loss. Impairment of financial assets (IFRS 9) The Group assesses the credit risk associated with debt instruments measured at amortised cost or at fair value through other comprehensive income on a forward-looking basis. Credit risk is the risk of financial losses if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The carrying amounts of financial assets correspond to the maximum credit risk. IFRS9 provides for a general impairment model (three-stage model) and a simplified method for determining expected loss. General impairment model The general impairment model distinguishes between three stages of impairment. The amount of the impairment is determined by assigning the financial instrument to one of these three stages. The general impairment model is applied to all financial instruments except for trade receivables. Stage 1: twelve-month expected credit losses In principle, all financial instruments upon acquisition and financial instruments that have not experienced any significant deterioration in credit quality since acquisition are to be classified in stage 1. The expected credit loss corresponds to the present value of the expected payment defaults that arise from possible default events within the next 12 months after the reporting date. Stage 2: lifetime expected credit losses – no deterioration in credit rating If there is a significant increase in the credit risk but no objective indication of impairment, the expected credit loss must be increased up to the amount of the expected losses over the entire remaining term. A transfer from stage 1 to stage 2 is presumed when contractual cash flows are more than 30 days past due, unless there is reasonable and supportable evidence to the contrary. Stage 3: lifetime expected credit losses – credit-impaired If there is objective evidence that a financial asset is impaired, it must be transferred to stage 3. If the contractual cash flows have been past due for more than 90 days, there is a rebuttable presumption that there is objective evidence of credit default. Consequently, the financial instrument must be transferred to stage 3. The determination of whether a financial asset has experienced a significant increase in credit risk is based on an assessment, conducted at least annually, of the probabilities of default that take into account both external rating information and internal information about the credit quality of the financial asset. The probability of default is taken into account at the time of initial recognition of the financial assets and a significant increase in credit risk during all reporting periods. To assess whether credit risk has increased significantly, the credit risk associated with the asset on the reporting date is compared with the credit risk at initial recognition. In that respect, available reasonable and supportable forward-looking information is taken into account.