ÖBB Annual Report 2023

Consolidated Financial Statements 248 Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 30 Use of estimates and judgement The preparation of the Consolidated Financial Statements requires the Board of Management to make estimates and assumptions that may affect the amounts of assets, liabilities, and contingent liabilities reported at the reporting date and the amounts of income and expenses of the period under review. Actual results may differ from these estimates. All estimates and assumptions are updated on a regular basis and are based on experience and other factors, including expectations with respect to future events deemed to be reasonable under the given circumstances. In applying the accounting policies of the ÖBB Group, the Board of Management makes judgements and estimates, for example, in applying hedge accounting, in assessing the transfer of relevant risks in leasing transactions, in assessing the extent to which renewal or termination options are exercised as lessee in assessing the term of leases, and in recognizing and accounting for federal grants pursuant to Sections 41f BBG. Additionally, as of the reporting date, the Board of Management made key assumptions concerning the future and identified key sources of estimation uncertainty at the reporting date which bear a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities in the next financial year. The useful lives have been reviewed. The economic risk was properly taken into account by carefully measuring the provisions in the required amount. The adequacy of allowances has been reviewed. The parameters for the impairment tests of the cash-generating units were updated in accordance with the interest rate development and the benchmarks customary in the industry. The insurance and financial mathematics determinations for the measurement of severance payments and anniversary bonuses were determined responsibly. The activation of goodwill is exclusively based on external expertise. a. Employee benefit plans Obligations for severance payments and anniversary bonuses are measured by applying parameters such as the expected discount rate, long-term rate of compensation increases, and staff turnover. If the development of the relevant parameters differs significantly from the expectations, this can have a decisive effect on the provisions and, as a result, on the net personnel expenses for severance payments and anniversary bonuses of the ÖBB Group. With regard to long-term personnel provisions (severance payments and anniversaries), the discount rate, rate of compensation increases and fluctuations were adjusted to the changed conditions in both financial years. The impact of possible changes of parameters is disclosed in Note 26.1. b. Impairment losses and reversals Assessments of impairment of intangible assets and property, plant and equipment are based on the business plans (budget 2024 and medium-term planning 2025 to 2029). These represent the future net cash flows expected by management from the continued use of the assets. Discount rates are used to discount the net cash flows to the reporting date. Factors such as lower revenue or increasing expenses and resulting lower net cash flows as well as changes in the discount rates used can therefore lead to an impairment. In the 2023 financial year, an impairment test was conducted as at the reporting date, which resulted in no impairment losses or reversals of impairment losses. The sensitivity analysis in the table below shows the under-/over-coverage of the CGUs in the event of a change in assumptions: Increase in the parameter Decrease in the parameter Sensitivity analysis in EUR million in EUR million Assumptions Change in assumption in % Cargo Intermodal TS-HU Postbus Cargo Intermodal TS-HU Postbus Interest rate +/-0.25 -54,.5 (py: -82.9) -11.1 (py: 9.6) 2.1 (py: 13.4) 176.3 (py: not specified) 56.1 (py: 32.5) 9.1 (py: 8.6) 4.3 (py: 16.1) 222.0 (py: not specified) Perpetuity EBITDA +/-2.5% 20.5 (py: 1.1) 2.2 (py: 4.3) 3.5 (py: 15.3) 252.7 (py: not specified) -23.3 (py: -55.9) 5.1 (py: -6.0) 2.8 (py: 14.1) 143.2 (py: not specified) In the Rail Cargo Group subgroup, an assumption was applied in the course of the impairment test that, as in the past, grants for single-wagon transport, which contribute to the preservation of assets, are to be provided in the planning period for the purpose of shifting freight to rail in the main markets of CGU Cargo and CGU Intermodal.