ÖBB Annual Report 2023

291 Consolidated Financial Statements Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 73 Services are predominantly provided within the framework of transport contracts or transport service contracts (VDV) for transport associations over several years. This means that the ÖBB Group has a long-term contract and must therefore also take into account the price fluctuations for diesel in its economic considerations. Consequently, it is particularly relevant for the ÖBB Group to have already hedged or fixed the prices in advance. The risk management strategy therefore provides for price hedging. The aim of the hedging policy pursued is to stabilise the cost of materials and to achieve a reduction in earnings and cash flow volatility for ÖBB-Produktion Gesellschaft mbH as well as for Österreichische Postbus AG and thus for the ÖBB Group for the budget period. Against the background of possible procurement strategies and in order to diversify risks, it was decided to hedge the first 60% and 70% of the planned purchase volume for the next financial year and the first 30% and 35% of the planned purchase volume of the next but one financial year of ÖBB-Produktion Gesellschaft mbH and Österreichische Postbus AG respectively by 30.09 of the current financial year. This ensures the planning assumptions for the corresponding volume at the time of calculation or at the time when the prices are set (budget, conclusion of contract with customers). The planned purchase quantity of the raw material diesel in the period from 01.01.2024 to 31.12.2025 was designated as the underlying hedged item in the 2023 financial year. This diesel consists of a fossil (93.1%) and biogenic share (6.9%). Only the price component of the expected future procurement related to the fossil diesel share is designated as a hedged risk. The diesel swaps designated as cash flow hedges are based on the ULSD10ppm barges fob Rotterdam and correspond exactly to the price component of the underlying transaction related to the fossil diesel portion. That means the underlying risk of the diesel swaps is identical to that of the hedged risk component. A hedge ratio of 1:1 therefore exists for all measurement units. – The objective for the hedging relationship of ÖBB-Produktion Gesellschaft mbH in the 2023 financial year is to hedge the first 60% of the planned purchase volume for the 2024 financial year and the first 30% of the planned purchase volume for the 2025 financial year for diesel excluding biodiesel content. – The objective for the hedging relationship of Österreichische Postbus AG for the financial year 2023 is to hedge the first 70% of the planned purchase volume financial year 2024 and the first 35% of the planned purchase volume financial year 2025 of diesel excluding the biodiesel component. Derivatives with a positive fair value are reported under current or non-current financial assets, depending on the maturity band (Note 18). Derivatives with a negative fair value are reported in current or non-current financial liabilities depending on the maturity band (Note 25). Nominal volume Average exercise price Fair value Dec 31, 2023 Maturity Number of swaps Tons in EUR million in EUR in EUR million Portfolio 18 59.687 41.0 1,372.0 3.7 thereof maturing 2024 12 40.211 28.3 1,405.2 3.0 thereof maturing 2025 6 19.476 12.7 1,303.0 0.7 Nominal volume Average exercise price Fair value Dec 31, 2022 Maturity Number of swaps Tons in EUR million in EUR in EUR million Portfolio 12 62.238 47.3 760.0 -0.6 thereof maturing 2023 6 42.141 32.9 780.8 -0.2 thereof maturing 2024 6 20.097 14.4 716.5 -0.4 The cash flow changes of the planned diesel purchases resulting from the changes in the diesel price are offset by the cash flow changes of the diesel swaps, which are to be classified as derivatives according to IFRS 9. An adjustment is made to the acquisition costs of the inventories (basis adjustment) or a transfer is made to the cost of materials of the effective portion of the changes in value of the hedging derivative initially parked in equity when the underlying hedged item is exercised. In principle, within the scope of the dedication of a derivative as a hedging instrument, a prospective effectiveness measurement is conducted as well as a review of the effectiveness of the measurement unit and the determination of possible ineffectiveness on each reporting date. Ineffectiveness is measured by comparing the cumulative changes in the fair value of the designated hedging instruments since the designation of the hedging relationship and the cumulative changes in the fair value of the underlying hedged item in relation to the hedged risk. A hypothetical derivative is formed to determine the cumulative changes in the fair value of the underlying hedged item in relation to the risk of changes in the commodity price. Any hedge ineffectiveness (to the extent that the cumulative change in fair value of the hedging instrument is greater than the cumulative change in fair value of the hedged cash flow) is recognised in the financial result.