ÖBB Annual Report 2023

Consolidated Financial Statements 234 Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 16 Impairment of property, plant and equipment, intangible assets and as financial investments in property Methodology Property, plant and equipment, intangible assets and investment property with finite useful lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Assets with an indefinite useful life (especially goodwill) are subject to mandatory impairment testing at least once a year. The impairment test is performed for all items of property, plant and equipment and intangible assets. In accordance with the provisions of IAS 36 “Impairment of Assets”, an impairment loss is recognised if the carrying amount exceeds the higher value which results from the fair value less cost to sell and value in use. The fair value less cost of sale corresponds to the amount realisable in an arm’s length sale transaction and is determined in accordance with IFRS 13. The value in use corresponds to the discounted estimated future net cash flows that are expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Impairment losses are recognised in the item ‘Depreciation and Amortisation’ in the consolidated income statement. The ÖBB Group determines the value in use as it can be assumed that the value in use is above the fair value less cost of sale. The value in use corresponds to the estimated future net cash flows of the cash generating units (“CGU”) based on the business plans derived from past results and the Management Board’s best estimates of future developments. The growth rates assumed in the business plans (budget 2024 and medium-term planning 2025 to 2029) reflect the weighted average growth rates based on market estimates. Cash flow forecasts exceeding the period covered by the business plan are based on steady growth rates for subsequent years and are not in excess of the long-term weighted average growth rate for the industry and the country where the cash-generating unit operates. Cash flow projections beyond the business plan period are determined based on a constant growth rate for subsequent years and are not in excess of the long-term weighted average growth rate for the industry and country in which the CGU operates. Special effects after the business planning period that were already known and estimable at the time of the annual financial statements were taken into account in the calculation of the value in use. If the recoverable amount is higher than the carrying amount, there is no impairment for the CGU concerned. If the recoverable amount of the CGU is less than the carrying amount, an impairment loss is recognised for that unit. The impairment is first allocated to goodwill (if any) and subsequently to the assets of the CGU on a pro rata basis, whereby the assets of the CGU may not be amortised below their recoverable amount. The reductions in the carrying amount represent expenses from the impairment of the individual assets. Should there be an indication that an asset is no longer impaired, the impairment loss is reversed in full or in part through profit or loss, up to a maximum of the amortised cost. Reversal of impairment losses is not permitted in the case of goodwill. At the end of the year, management reviews whether a triggering event for impairment has occurred. Structure of the cash-generating units (CGU) and calculation premises Each CGU consists of one, a part or a number of legally independent companies. The delimitation criteria for the CGU’s are based on the structure of business operations and correspond to the business areas and business activities. This structure ensures that all material assets of the ÖBB-Group are tested for impairment. The entire pool of traction units of ÖBB-Produktion Gesellschaft mbH is used jointly across the ÖBB Group and allocated to the CGU Cargo and CGU Intermodal of the Rail Cargo Group subgroup and the CGU Passenger Transport of the ÖBB- Personenverkehr subgroup in accordance with their utilisation as part of the impairment test. Cash-generating units of the ÖBB-Personenverkehr subgroup The ÖBB-Personenverkehr subgroup consists of four (py: four) CGUs: “ÖBB-Personenverkehr”, which deals with rail passenger transport, “Postbus”, which deals with bus passenger transport, “iMobility”, which manages a mobility app, and “ÖBB-Technische Services”, which deals with the maintenance of rolling stock. Apart from iMobility GmbH, each CGU consists of a number of legally independent companies. The delimitation criteria for the CGUs are therefore based on the structure of the operating business and correspond to the business areas and business activities of the ÖBB- Personenverkehr subgroup.