ÖBB Annual Report 2023

101 Group Management Report Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 56 Credit risk Credit risk describes the potential for losses due to non-fulfilment of financial obligations by business partners. The risks relate primarily to money market transactions, trade receivables, investments and positive present value commodity derivatives. Counterparty risk management is subject to limits that are assigned individually for each financial partner and checked daily for compliance. Counterparty risks exist outside the original transactions with ÖBB financial partners and in connection with terminated cross-border leasing transactions. For cross-border leasing transactions, security deposits, payment undertaking agreements and swaps were concluded with financial partners. They serve to pay leasing instalments during and the purchase price at the end of the term. Cross-border leasing management is concerned with the management, processing, risk management and economic termination of existing cross-border leasing transactions. The aim of cross-border leasing management is specifically to monitor all rights and obligations arising from the transactions. This includes ensuring contractual settlement, avoiding risks and guaranteeing the profitability of the entire portfolio. Since 2020, all guarantees received from commercial banks have been included in the weekly limit distribution, and since the 4th quarter 2022, ESG ratings according to Sustainalytics have also been included. Commodity risk Electricity ÖBB-Infrastruktur AG operates its own hydropower plants. It assumes the technical, commercial and legal responsibility for power installations and equipment and includes the energy efficiency competence center for energy procurement at ÖBB. Energy facilities are power plants, frequency shapers, substations as well as main supply facilities and control centres. Risk management in the energy area is provided by ÖBB-Infrastruktur AG. Approx. two thirds of the required traction current and all the electricity to supply the operating facilities (stations, etc.) are procured from the electricity market. The ÖBB-Infrastruktur subgroup is therefore strongly affected by electricity price volatility. The risk management strategy therefore provides for price hedging. It is especially relevant for the ÖBB-Infrastruktur subgroup that the prices are already hedged and fixed in advance. Price hedging takes place by concluding forwards and futures for the planned purchase quantities of traction current, loss energy and operating equipment as well as for emission certificates. In addition to price hedging, hedging also serves to increase planning security, which is necessary as a basis for price calculation. Further information are available in Note 29.4. to the consolidated financial statements. Diesel Corresponding diesel volumes are applied in principle at two companies in the ÖBB Group: Österreichische Postbus Aktiengesellschaft and ÖBB-Produktion Gesellschaft mbH. Österreichische Postbus Aktiengesellschaft is the market leader in regional public road transport. The strategic Group purchasing department concludes framework agreements with several suppliers on the basis of information provided by the Österreichische Postbus Aktiengesellschaft in order to procure the required quantities of diesel. The term of the framework agreements is usually nine to twelve months. Fuel purchases are made on the basis of the conditions set down in the contracts plus a transport logistics premium as defined in the contract. The transport premium may vary depending on the point of delivery. This surcharge is fixed contractually in each case. There is also the option for Österreichische Postbus Aktiengesellschaft to arrange for external fuel supply. There are framework agreements for fuel cards with various providers for this purpose. The conditions are regulated in the respective contract between the providers and Österreichische Postbus Aktiengesellschaft. The discounts vary depending on the supplier. The raw material diesel represents a financial risk for Österreichische Postbus Aktiengesellschaft and thus also for the ÖBB Group due to the fluctuations in diesel prices. Price fluctuations have an impact on the cost of materials and thus on the result of Österreichische Postbus Aktiengesellschaft and subsequently on that of the ÖBB Group. In light of the possible procurement strategies and for risk diversification, diesel price hedging was approved and implemented for up to a maximum of 24,563 metric tonnes of diesel for the 2024 delivery year and 12,173 metric tonnes of diesel for the 2025 delivery year. The aforementioned 24,563 metric tonnes correspond to 70% of the annual fuel requirements for 2024. The aforementioned 12,173 metric tonnes correspond to 35% of the annual fuel requirements for 2025. MR56 |