ÖBB Annual Report 2023

293 Consolidated Financial Statements Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 75 Derivatives with a positive fair value are reported under current financial assets (Note 18). Derivatives with a negative fair value are reported under financial liabilities (Note 25). Changes in the fair value of power derivatives without a hedging relationship are recognised in the income statement under other financial result. 29.4.4. Electricity derivatives sensitivity An increase or reduction in the electricity price of 10% with an unchanged assessment of the credit risk and the interest component would lead to an increase or reduction in other comprehensive income of approx. EUR 6.6 million (py: approx. EUR 29.0 million) and an increase or reduction in financial income in the income statement of approx. EUR 1.5 million (py: approx. EUR 3.7 million). These amounts are prior to the consideration of income taxes. 29.5. Additional disclosures in accordance with IFRS 7 Capital management The ÖBB Group’s financial management aims not only to sustainably increase the value of the company, but also to maintain a capital structure that is appropriate for maintaining its excellent credit rating. The specific situation and the legally defined task of the company, as well as the agreements with the public sector to subsidise infrastructure expenses (both construction and operation and maintenance) that are not covered by the company’s earning power, mean that the capital structure is managed primarily with key figures that measure debt and on the basis following key figures, which are compared with the respective planned values: Number of employees, EBIT margin, equity ratio, net working capital. The company defines equity as share capital, capital reserves and other reserves, profit earned and any other non-controlling interests. The managed equity amounts to approx. EUR 3,192.8 million as of 31.12.2023 (py: approx. EUR 3,506.1 million). Additional disclosures regarding the financial instruments Cash and cash equivalents, trade receivables as well as other financial receivables mostly have short residual terms. Accordingly, their carrying amounts as of the closing date approximate the fair value. The fair values of other non-current receivables are equivalent to the present values of the cash flows associated with the assets with due regard to the latest applicable interest rate parameters. The recognised values of trade payables and other financial liabilities generally have short residual terms; the recognised values approximate the fair values. Non-current other receivables and assets or non-current other liabilities and debts are essentially non-financial instruments. The fair values of liabilities to banks and other financial liabilities are determined as the present values of the payments associated with the liabilities, based on the applicable interest rate curve. The non- financial instruments and the financial instruments from hedge accounting are presented in a separate column in the reconciliation below in order to enable reconciliation with the carrying amount of the item. The fair values of the relevant items on the statement of financial position stated in the tables below relate solely to the financial instruments. All financial assets and liabilities are measured consistently according to Level 2, with the exception of the item cash and cash equivalents and the issued bonds with an ISIN number, which are reported under financial liabilities. Level 2 measurements are based on input parameters – other than the quoted prices included at Level 1 – that are either directly or indirectly observable on the market for the asset or liability. The measurement of long-term financial instruments is based on discounted cash flows. Market prices are applied for the stated fair values of the issued bonds with an ISIN number of ca EUR 8,040.9 million (py: approx. EUR 8,802.1 million). Of which, unadjusted quoted prices are available for approx. EUR 7,882.0 million (py: approx. EUR 8,802.1 million) (Level 1 measurement). The present values were calculated for approx. EUR 158.9 million (py: approx. EUR 0.0 million) as no market quotation was available. Level 1 measurements are those resulting from quoted prices (unadjusted) in active markets for identical financial assets or liabilities. The source for the quotations is Bloomberg. The bonds were issued through the stock exchanges in Luxembourg and Vienna. The fair value of the bonds with CUSIP numbers issued for the first time in 2015 is approx. EUR 58.0 million (py: approx. EUR 57.6 million). These were determined using a measurement model based on market parameters in accordance with Level 2.