Always on the move ANNUAL REPORT 2016 ÖBB-HOLDING AG January February March 4/22 Still on track to success 2015 marked the fifth consecutive year of profit growth at ÖBB. Its earnings (EBT) of 192.8 million euros in 2015 constituted the best result ever achieved in the history of the company. Rail passengers increased by 3 million. 5/07 ÖBB’s CEO be- comes Chancellor 1/17 of Austria By rail to the ski jump Despite the checkered 180-year history of ÖBB, this is the first time Over the three-day event, ÖBB provided convenient and stress-free rail ever that its leading train driver has transport for thousands of the 60,000 or so visitors to the World Ski taken over the wheel at the federal Jumping Championship in Kulm. ÖBB demonstrated its presence with chancellery: On this day, ÖBB’s eye-catching advertising on both the jump and at the finishing line. CEO Christian Kern was sworn in as Federal Chancellor of the Republic of Austria. 3/9 Project launch Training Center ÖBB plans to bundle all its rail- way-specific training programs in St. Pölten in future. A learning campus with seminar rooms, signaling system for training purposes, model systems, and simulators are being built here, together with a new ap- prentice hostel. Innovative training opportunities will then be available – for employees of both ÖBB and other railway operators. 4/11 New ideas platform launched ÖBB’s Open Innovation Lab has opened its doors at head office. The intra-Group platform bundles all the 1,500 or so valuable ideas and initiatives that emerge within the 5/24 Group each year. A creative work approach goes without saying here. Andreas Matthä appointed new CEO ÖBB’s Supervisory Board was very quick to decide who will steer ÖBB in the future: Andreas Matthä, formerly member of the Board of Manage- ment responsible for Infrastructure for many years, was initially appoint- ed interim CEO of ÖBB and subsequently confirmed by the Supervisory Board meeting on July 4. April May June 6/10 A look back International Safety Day BMVIT, ÖBB, KfV and ÖAMTC joined forces to present a video explaining the correct behavior at railway cross- at 2016 ings. The new Infra safety campaign for youngsters aims to raise their YEAR IN REVIEW. A new training center, awareness for hazardous situations. a new CEO, the biggest expansion of our products and services in 30 years, and a new central freight station. 5/31 Gratifyingly good levels of customer satisfaction The most recent customer satisfac- tion survey confirms that customers are appreciative of ÖBB’s quality and service. Good scores were again awarded for punctuality, cleanliness and safety, and the staff scored top marks yet again for their compe- tence and friendliness. 6/8 Surf the internet at 230 km/h! Thanks to the biggest digitaliza- tion campaign in the history of the company, uninterrupted WiFi is now possible while traveling at 230 km/h on a Railjet, complete with onboard entertainment via the portal contain- 6/14 ing information and ORF-TVthek. 450 million euros for Vienna’s metro Between now and 2025, BMVIT and the city of Vienna plan to invest around 450 million euros, mainly to expand the metro, with focus on the connections between Meidling and Hütteldorf and the Marchegg branch. 6/18 Vienna’s central marshalling yard celebrates its 30th anniversary In future, ÖBB plans to bundle Open Day at “ZVB Kledering.” This is where freight trains are split up all its railway-specific training and regrouped, while the freight it- self is turned over in the new South programs in St. Pölten at a learn- Vienna Freight Terminal. ing campus with seminar rooms, signaling system for training purposes, model systems, and simulators ... July August September 7/6 The “ÖBB” brand ranks 5th The “ÖBB” brand has been continuously increasing in value over the past five years and is currently worth 1.88 billion euros, according to the European Brand Institute. As such ÖBB ranks fifth among a total of 500 Austrian companies. 8/24 VCÖ railway test reveals trend toward taking the train There are already a lot of people who prefer to take the train rather than drive, although frequently the car could also be an option. For many passengers, an improved portfolio of rail products and services (68%) and shorter travel times (71%) are the key deciding factors. 7/11 9/10 ÖBB wants ÖBB at “Open to become a House Vienna” top employer 800 (!) people took advantage of According to the Employer Brand the opportunity to have a look at Study, ÖBB currently ranks a good the Service Design Center, a model 14th out of 37 surveyed compa- open-plan office, and the Skylobby nies in Austria. Our aim is to rank on the 23rd floor of head office. among the top ten employers by 2020. 7/14 9/23 Hallo Hellö Con struction of On this day, ÖBB commenced its the last Koralm- long-distance bus service under the bahn tunnels “Hellö” brand with eleven inter- Following the festive start of tunnel national connections. On the first construction, building work on the weekend of operation, some of the Stein and Lind tunnels commenced services on the Vienna to Venice on this day and is scheduled for route were virtually booked out. completion in 2022. All ten tunnels of the Koralmbahn, which extends for some 130 kilometers in length, are therefore now either under construction or in partial operation. October November December 10/20 12/11 InfoRail Upper Austria gets goes on tour a metro as well The InfoRail exhibition touring Five new metro lines commenced throughout Austria offers fasci- operation in Upper Austria, four nating insight into the numerous of which are operated by ÖBB. projects along the Southern line, The 500,000 or so people living in together with stories about the Austria’s second-largest conurba- people working on it. tion in and around Linz now have a viable alternative to automobile transportation. 10/17 40,000 questionnaires to employees “Tell us what you think” was again the topic of the day as we launched what was now our third Austria- wide ÖBB employee survey, which ran until November 4. More than half the workforce took part in the survey (see page 42). 11/23 PR State Prize for Humanity ÖBB has won the Austrian PR State Prize yet again, this time for its “Humanity takes the train” project as part of its crisis communication during the refugee crisis. 12/11 Night train becomes ÖBB Nightjet Additional night train connections coupled with first-rate service: Over the coming three years, ÖBB hopes to welcome around 1.8 million more passengers on board its new Nightjet service. 12/11 12/13 New timetable: Opening of the 2.2 million South Vienna more passenger Freight Terminal kilometers ÖBB-Infrastruktur has built a The new timetable constituted the state-of-the-art freight terminal biggest expansion of our services on a site measuring 55 hectares. According to VCÖ, ever more in 30 years. Better connections The terminal for combined freight for passengers are now available, transport will vastly simplify road/ people already prefer trains to especially in and around the rail turnover and, in doing so, cars. For many passengers, an conurbations in Tyrol, Carinthia hopefully result in even more and Styria, and thanks to the new goods being transported by improved portfolio of rail products metro lines in Upper Austria. eco-friendly rail. and services is one of the key deciding factors. Key Performance Indicators Earnings ratios (IFRS) (million euros, rounded) 2016 2015 2014 2013 2012 Revenue 5,247 5,221 5,270 5,239 5,221 Total income 6,416 6,345 6,355 6,248 6,216 Cost of materials and purchased services -1,730 -1,751 -1,764 -1,793 -1,929 Personnel expenses -2,478 -2,337 -2,407 -2,341 -2,358 Other operating expenses -428 -451 -460 -530 -478 EBITDA 1,779 1,806 1,723 1,584 1,451 Depreciation & amortization (incl. impairment) -968 -949 -859 -829 -750 EBIT 811 857 864 755 701 Financial result -645 -664 -692 -652 -626 EBT 166 193 172 103 75 ROCE (%) 3.4 3.7 3.9 3.6 3.5 Balance sheet ratios (IFRS) (million euros, rounded) Balance sheet total 27,344 26,475 25,746 24,631 24,084 Non-current assets 25,877 25,140 24,334 23,322 22,446 of which property, plant and equipment 24,386 23,416 22,724 21,765 20,749 Current assets 1,467 1,335 1,411 1,310 1,638 Equity 2,093 1,922 1,692 1,589 1,431 Equity ratio (%) 7.7 7.3 6.6 6.5 5.9 Financial liabilities 22,799 22,317 21,811 20,778 20,177 Net debt 22,108 21,306 20,839 20,024 18,369 Gross capital expenditure 2,400 2,032 2,057 2,170 2,248 Net debt/EBITDA (ratio) 12.4 11.8 12.1 12.6 12.7 Net gearing (ratio) 10.6 11.1 12.3 12.6 12.8 Contents STATEMENT OF THE BOARD OF MANAGEMENT 3 CONSOLIDATED FINANCIAL STATEMENTS 108 Consolidated Income Statement 2016 108 STATEMENT OF THE CHAIRWOMAN Consolidated Statement of Cash Flow 2016 109 OF THE SUPERVISORY BOARD 6 Consolidated Statement of Financial Position as of December 31, 2016 110 Consolidated Statement of Cash Flow 2016 111 ALWAYS ON THE MOVE 10 Consolidated Statement of Changes in Shareholders’ Equity 2016 112 CORPORATE GOVERNANCE REPORT 52 NOTES ON THE CONSOLIDATED FINANCIAL CONSOLIDATED MANAGEMENT REPORT 60 STATEMENTS AS OF DECEMBER 31, 2016 113 A.