Annual Report 2025 – ÖBB-Infrastruktur AG

Differentiation between capitalized investments and immediately expensed maintenance expenses Description / Risk: ÖBB-Infrastruktur Aktiengesellschaft invests more than three billion euros annually in the Austrian rail network on behalf of the federal government. In addition to investments in the construction of new rail infrastructure, the company is making significant expenditures for the renewal and maintenance of existing infrastructure. While measures classified as investments are capitalized and thus amortized over several years, maintenance measures are immediately reflected as expenses in the result. As with all large infrastructure companies, the distinction between investment and maintenance measures and their correct presentation in the consolidated financial statements of ÖBB-lnfrastruktur Aktiengesellschaft is of particular importance. Especially in the case of measures relating to existing infrastructure, accrual and classification problems can arise. Information on the accounting policies can be found in the notes under section “3. Summary of significant accounting policies, property, plant and equipment.” Information on the maintenance services recognized as expenses in the financial can be found in the notes under “B. Notes to the consolidated balance sheet and consolidated income statement – 7. Cost of materials and purchased services.” Consideration the audit of the consolidated financial statements: Our audit procedures included, among others, the following activities: As part of our audit procedures, we gained an understanding of the relevant process and the significant key controls regarding the correct categorization and accounting treatment of capitalized investments and expensed maintenance, assessed the concept and design of the controls in the process and tested selected key controls in the process for their effectiveness (“functional testing”). This especially affects key controls when orders are created in the SAP system. We also held discussions with the ICS control owners and ICS testers who independently perform downstream controls in the area of property, plant, and equipment, gained an understanding of their activities and assessed their competence and professional quality. We also obtained and read internal audit reports relating to the key audit matter, assessed their impact on our audit strategy and performed additional audit procedures. We audited the internal accounting policies (“Capitalization Manual”) for compliance with the accounting and valuation principles in accordance with IFRS. Based on the results of the test of controls, we tested the correct recognition as either additions to property, plant, and equipment or expenses in accordance with the internal accounting policy (“Capitalization Manual”) on the basis of random samples, samples of investment and maintenance orders. Samples of significant projects were selected at random and on the basis of defined risk criteria, taking into account the size of the project. The audit procedures included in particular the review of project descriptions, the discussion of project contents with the project managers and project controllers and, based on this, the assessment of the accounting decisions made. Where necessary, we also inspected accounting and contract documents for the projects included in the samples. 242