ÖBB Annual Report 2023

Consolidated Financial Statements 282 Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 64 C. OTHER NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 28. Contingent liabilities and non-current liabilities 28.1. Contingent liabilities 2023 2022 in EUR million in EUR million Contingent liabilities 17.7 23.7 Total 17.7 23.7 The contingent liabilities shown relate to guarantees and contingent liabilities, whereby the extent of the cash outflows depends on the future business performance of the ÖBB Group. Other contingent liabilities are contingent liabilities from equity investments of approx. EUR 0.4 million (py: approx. EUR 0.1 million). 28.2. Long-term obligations ÖBB-Infrastruktur AG has concluded three power purchase agreements with suppliers that run until 2027, 2029 and 2042; for part of one traction current supply, the contract runs for the duration of the existing systems. A total of 170 MW is purchased annually under these contracts. The measurement using the relevant prices as at 31.12.2023 or the average prices in 2023 (if these are relevant for pricing) has resulted in an expected obligation for 2024 of approx. EUR 215.4 million and a total obligation of approx. EUR 768.9 million by the end of the term. The total obligation does not include the annual amount of approx. EUR 68.3 million (duration of the plants), as it is not known how long the plants will remain in operation at the supplier. These obligations fluctuate with the development of electricity prices. 29. Financial instruments 29.1. Risk management The ÖBB Group is subject to market (interest rate and currency), credit (creditworthiness of contractual partners) and liquidity risks. The Group views financial risk management as the management of market risks and the business management of the individual companies’ portfolios with respect to interest rate, currency, and commodity price trends. The ÖBB Group uses derivative financial instruments to hedge these risks. Derivative financial instruments are concluded only with reference to a hedged item. A core task of risk management is to identify, measure, and mitigate financial risks. Risk limitation is not the complete exclusion of financial risks, but rather a reasonable management of quantified risk positions at any time within a precisely defined framework of measures. ÖBB-Holding AG, which conducts financial transactions, with the exception of hedging instruments for commodities, in the name and for the account of its subsidiaries only after receiving their approval and mandate, has established a risk- oriented control environment that includes, among other things, policies and procedures for the assessment of risks, approval, reporting and monitoring of financial instruments. The protection of the ÖBB Group assets is the first priority for any and all financial activities. The derivatives used in the ÖBB Group are non-structured standard hedging transactions (forward exchange transactions and commodity swaps) with a nominal value of approx. EUR 466.7 million (py: approx. EUR 468.2 million). In the 2023 financial year, commodity swaps with a nominal value of approx. EUR 26.6 million were concluded for the delivery years 2024 and 2025 (py: EUR 47.3 million for the delivery years 2023 and 2024). In addition, interest rate swaps with a nominal value of approx. EUR 196.0 million were concluded in the 2022 financial year. 29.2. Types of risk Financial risks are defined as follows: – 29.2.a. Interest rate risk – 29.2.b. Currency risk – 29.2.c. Credit risk – 29.2.d. Liquidity risk – 29.4. Commodity risks (electric power price fluctuations)