ÖBB Annual Report 2023

299 Consolidated Financial Statements Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 81 Total cash outflows comprise interest and repayments, with repayments presented in financing cash flows and interest in operating cash flows. Payments for short-term leases and for leases of low-value assets are shown in the operating cash flow. Extension options Some property lease agreements contain extension options that can be exercised by the Group up to one year before the end of the non-cancellable contract term. The Group assesses both on the commencement date and again if a significant change in circumstances occurs whether it is sufficiently certain that the extension option will be exercised. The leasing agreements contain no special restrictions or commitments. Sale and leaseback transactions As at the reporting dates, lease liabilities from sale-and-lease-back transactions totalling approx. EUR 19.8 million (py: approx. EUR 21.7 million) are recognised. 30.3. Cross-border leasing agreements In recent years, ÖBB-Personenverkehr AG concluded a cross-border leasing transaction (CBL transaction), which still exists as at 31.12.2023. This CBL transaction is a directly financed CBL transaction. The assets underlying this transaction are electric locomotives. In this transaction, the contractual partner acts as the buyer of the equipment and leases it back to ÖBB-Personenverkehr AG. Minimum ratings are not applied. The rolling stock subject to the transactions is regularly maintained in accordance with the provisions contained in the contracts and may not, in principle, be sold, leased, pledged or decommissioned. Release of CBL transactions In the reporting year 2022 the last CBL transaction of ÖBB-Infrastruktur AG was terminated prematurely. Accounting treatment The ÖBB Group remains the beneficial owner of the assets: Due to continuing beneficial ownership, property, plant and equipment sold and leased back is still recognised in the property, plant and equipment of the ÖBB Group. Detailed regulations on the presentation of leases is provided in IFRS 16 “Leases”. The decisive question here is whether an economic substance is to be attributed to the leasing transaction. As this is not the case, none of these CBL transactions are within the scope of IFRS 16. This resulted in financial assets owned by the ÖBB Group under civil law (securities and bank deposits) as well as associated leasing liabilities not fulfilling the criteria of an asset or liability due to a lack of economic substance (“linked transactions”) and are therefore not recognised in the statement of financial position. Consequently, a (partial) inclusion in the statement of financial position (on balance) was required for some transactions in the consolidated financial statements (unlinked transactions). Where, however, recognition in the statement of financial position is required, the securities (investments with banks and PUAs) were valued at amortised cost. The financial assets are offset by leasing liabilities. Amounts denominated in foreign currencies are translated at the exchange rate applicable at the reporting date. Any impairment of the assets resulting from changes in exchange rates are offset by corresponding exchange rate effects on the lease liabilities, and credit financing in the event of a hedged repayment vehicle regarding one of the tranches of a transaction. In the consolidated financial statements as of 31.12.2023, the financial assets in connection with unrelated leasing transactions amount to approx. EUR 81.8 million (py: approx. EUR 81.8 million). As of 31.12.2023, related financial liabilities amount to approx. EUR 124.1 million (py: approx. EUR 133.6 million). Impairments were determined depending on historical probabilities of default measured by the rating of the contractual partners and the residual term of the transaction. As of 31.12.2023 total value adjustments exist on investments amounting to approx. EUR 0.2 million (py: approx. EUR 0.2 million). 31. Service Licence Agreements (SIC 29) The following explanations and disclosures relate to the requirements of SIC 29 (Service Licence Agreements). This refers to agreements between companies for the provision of services that give the public access to important economic and public facilities.