ÖBB Annual Report 2023

Consolidated Financial Statements 250 Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 32 The provision for environmental protection measures relates to the costs incurred in removing contamination from the company properties and land. The basis of the cost estimate rests on the presumed extent of contamination. The cost assessment is based on a conservative remediation, i.e. total excavation with subsequent landfilling. Should other remediation measures be agreed with the competent authority that lead to a reduction in financial expenditure, this will be taken into account in the annual statement. The provision for clearance costs covers contractual obligations in connection with the sale of properties and future costs in connection with properties that have already been sold but are still under development. A sensitivity analysis showed that the provisions for environmental risks and for decommissioning costs would increase/decrease by approx. EUR 4.3 million (py: approx. EUR 5.6 million) in the event of a change in costs of +/- 10%. The determination of sensitivities for franking costs was waived, as the provision consists of many individual amounts for which different parameters, estimates and calculations are applied. The modification of individual parameters would therefore not have any particular significance. See Note 26.2 for regulatory procedures under the IAS 37.92 safeguard clause. Proceedings of the Competition Authorities Appropriate provisions have been made for legal risks arising from ongoing competition law investigations against Group companies. The amount of any financial penalties and claims that may have to be paid is subject to uncertainty. A further breakdown for the purpose of minimising litigation risk remains to be done. The provisions are shown in Note 26.2. e. Income taxes Deferred tax assets were recognised for temporary differences between the tax base and the carrying amounts of assets and liabilities and for losses carried forward. Reference is made to the partial tax exemption regarding the tax situation of ÖBB-Infrastruktur AG (listed under the heading “Tax situation”). When assessing the recoverability of deferred tax assets, the Board of Management evaluates the expected usage within the five-year tax planning period (Note 13). The deferred tax assets capitalised on existing loss carryforwards and temporary differences are based on an estimate of taxable results for the next five years. Should the tax assessment on the qualification of the divisions of ÖBB-Holding AG as tax-exempt and taxable change, or should insufficient taxable results be available in the future, this may have a significant impact on the amount of deferred tax assets. When assessing the recoverability of deferred tax assets, the Board of Management evaluates the expected usage within the five-year tax planning period (Note 13). Tax matters are subject to uncertainty with regard to their assessment by the tax authorities and it cannot be ruled out that in individual cases they may come to different results. If changes in the assessment are likely, a corresponding provision is created. This was not required as at 31.12.2023 and 31.12.2022. f. Cross-border leasing In respect of contractual parties to investments with at least an AA+ rating or for which a subsidiary guarantor liability is assumed by the government for their performance, the default risk is still regarded as extremely low, so that no need for any change is seen at present and these transactions can continue to be disclosed off balance. Should there be unexpected defaults on these investments or should requirements for the minimum rating no longer be fulfilled, the obligations from the transactions and the investments will be recognised in the Statement of Financial Position, and allowances for these investments will be recognised or the repayment vehicle will be exchanged (Note 30.3). g. Financial obligations Various proceedings, lawsuits and other claims against or by ÖBB-Holding AG and its subsidiaries are pending in the ordinary course of business. These issues are subject to a large number of uncertainties, and the outcome of the negotiations or processes cannot be predicted with certainty. Consequently, as of 31.12.2023, the Board of Management is unable to determine the total amount of financial liabilities or claims, or their impact on the ÖBB-Holding Group financial position with final certainty. These procedures could materially affect the results when they are finalised. However, the Board of Management believes that after final settlement of such cases, the outcome will not significantly exceed the provisions recognised, and therefore will not have any significant consequences on the consolidated financial statements.