ÖBB Annual Report 2023

303 Consolidated Financial Statements Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 85 The basis of the agreement on the subsidy pursuant to Section 42 (1) Federal Railways Act is in particular the business plan to be drawn up by ÖBB-Infrastruktur AG for a period of six years pursuant to Section 42 (6) Federal Railways Act with a precise description of the measures required for the fulfilment of its tasks to provide the rail infrastructure in a need-related and safe manner, including the time and cost plans as well as the rationalisation plans and a preview of the usage and other charges. Pursuant to Section 45 Federal Railways Act, the BMK has commissioned SCHIG to monitor compliance with the obligations assumed by ÖBB-Infrastruktur AG in the grant agreement. This grant agreement defines the targets to be achieved by ÖBB-Infrastruktur AG in connection with the grant pursuant to Section 42 Federal Railways Act. The targets to be specifically achieved by ÖBB-Infrastruktur AG are classified in particular into general, quality, safety and efficiency targets, which are agreed with due regard to the statutory tasks of ÖBB-Infrastruktur AG; they are laid down in the business plan agreed between the federal government and ÖBB-Infrastruktur AG pursuant to Section 42 (6) Federal Railways Act. Compliance with the obligation for ÖBB-Infrastruktur AG arising from the Federal Railways Act to ensure and continuously improve the quality and safety of the rail infrastructure to be operated is assessed in connection with the granting of grants by applying key figures. Unless otherwise agreed between ÖBB-Infrastruktur AG and the federal government, the annual grant amounts are to be reduced in the course of the update by the pro rata operating expenses for those rail infrastructures that are transferred to other operators or are no longer operated by ÖBB-Infrastruktur AG in deviation from the provisions of the business plan pursuant to Section 42 (6) Federal Railways Act. The total grants granted pursuant to Section 42 Federal Railways Act in 2023 amount to approx. EUR 2,401.6 million (py: approx. EUR 2,403.5 million). The investment grant for expansion and reinvestment of approx. EUR 1,316.3 million (py: approx. EUR 1,221.0 million) was increased by approx. EUR 86.7 million (py: approx. EUR 20.1 million) to approx. EUR 1,403.0 million (py: approx. EUR 1,241.0 million) due to the investment measures conducted and in line with the interest rate development in the income statement. The grant for operational management as well as inspection, maintenance, fault clearance and repair totalling EUR 1,085.3 million (py: approx. 1. 182.5 million) was reduced by a total of EUR 411.1 million (py: approx. EUR 363.5 million) due to an improvement in the operating business and the more favourable interest rate trend in the income statement. The grant of approx. EUR 125.0 million (py: approx. EUR 104.2 million) attributable to interest capitalised in accordance with IAS 23 is to be regarded as an investment grant and serves to cover future expenses incurred in the form of depreciation. The disclosure in the financial statements is made as a reduction of the subsidy pursuant to Section 42 (1) Federal Railways Act and is presented as a cost contribution. An amount of approx. EUR 674.2 million (py: approx. EUR 822.1 million) was therefore recognised in income for operational management, inspection, maintenance, malfunction clearance and repair. The accrued amounts in connection with grants for expansion and reinvestment of approx. EUR 91.8 million (py: approx. EUR 24.3 million) and in connection with management and apprentice training in an amount of approx. EUR 118.8 million (py: approx. EUR 70.4 million) are reported under other liabilities while the accrued amount from maintenance in an amount of approx. EUR 2.6 million (py: approx. EUR 15.9 million) is reported under deferred income. The final calculation of the annuity for the Brenner Base Tunnel results in a repayment component for ÖBB-Infrastruktur AG of approx. EUR 5.1 million (py: approx. EUR 4.2 million), which is recognised under deferred income. The development of the grants in 2023 is therefore stated as follows: in EUR million Total grant Accruals and repayments Recognised in income 2023 Section 42 (1) Operation 643.8 -413.7 230.1 Section 42 (2) Inspection, maintenance, disposal and repair 441.5 2.6 444.1 Total federal grant pursuant to Section 42 (1) and Section 42 (2) BBG 1,085.3 -411.1 674.2 Section 42 (2) Expansion and reinvestment, usage fee 1,316.3 86.7 1,403.0 Total federal grant for rail infrastructure Section 42 (2) BBG 1,316.3 86.7 1,403.0 Total other operating income 2,401.6 -324.4 2,077.2 In the reporting year, an amount of EUR 645.0 million (py: EUR 582.5 million) was repaid to the federal government in December 2023. The repayment relates both to liabilities already recognised as of 31.12.2022, and to federal grants received in 2023.