ÖBB Annual Report 2023

Consolidated Financial Statements 278 Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 60 The following table shows the components of net service costs for the period as well as the development of the provision for severance payments in the two reporting years: 2023 2022 in EUR million in EUR million Defined benefit commitments as of Jan 01 71.0 83.7 Service cost 3.2 3.9 Interest cost 2.9 1.1 Subtotal recorded in the net income 6.1 5.0 Actuarial losses (+) / gains (-) from changes in financial assumptions 6.8 -18.6 Experience adjustments 3.8 3.8 Recognised in other comprehensive income 10.6 -14.8 Severance payments -3.6 -2.7 Company sales and acquisitions 0.3 0.0 Defined benefit commitments as of Dec 31 84.4 71.0 Provisions for severance payments of approx. EUR 1.4 million (py: approx. EUR 2.2 million) are payable in 2024, approx. EUR 9.6 million (py: approx. EUR 7.6 million) in 2025 to 2028 and in the amount of approx. EUR 73.3 million (py: approx. EUR 61.1 million) after 2028. The average term (duration) is 14.4 (py: 14.0) years. The following sensitivity analysis for the provision of severance payments outlines the effect on the obligations of changes in key actuarial assumptions. One significant factor was changed in each case, while the others were held constant. In reality, however, it is unlikely that these factors are not in correlation. The calculation of the obligation using changed parameters is analogous to the calculation of the actual obligation using the projected unit credit method (PUC method) Projected unit credit method (PUC method) in accordance with IAS 19. A change in the actuarial assumptions would have the following effect: Sensitivity analysis of the Change in assumption Increase of the parameter / change in DBO Decrease of the parameter / change in DBO provisions for severance payments in % 2023 in EUR million 2022 in EUR million 2023 in EUR million 2022 in EUR million Interest rate +/- 0.2 -2.6 -1.9 2.1 1.9 Salary increase +/- 0.2 2.0 1.9 -2.6 -1.9 Anniversary bonuses Tenured and certain other employees (together “employees” in this context) are entitled to anniversary bonuses. Eligible employees receive two months’ salary after 25 years of service and four months’ salary after 40 years of service, in accordance with statutory and contractual provisions. Employees who have at least 35 years of service at the time of retirement are also paid a pro rata anniversary bonus of up to four months’ salary. The calculation of the provision was prepared actuarially according to the PUC method, which is the prescribed method for measurements in accordance with IAS 19. It is based on the biometric actuarial bases of the Aktuarvereinigung Österreichs (the Actuarial Association of Austria) (AVÖ) 2018-P – for male and female employees – actuarial assumptions for pension insurance. The provision is accrued over the period of service with a deduction to reflect employees who leave the company prematurely. Actuarial gains and losses are recognised immediately in profit or loss in the period in which they occur. The provision for anniversary bonuses for the other employees is formed in accordance with the regulations of the respective collective agreement or internal company agreements.