Bringing Austria Together
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Bringing Austria together. ANNUAL REPORT 2017 ÖBB-INFRASTRUKTUR AG Contents CONSOLIDATED MANAGEMENT REPORT 2 CONSOLIDATED FINANCIAL STATEMENTS 75 A. Group Structure and Investments 2 Consolidated Income Statement 2017 75 B. General Conditions and Market Environment 4 Statement of Comprehensive Income 2017 76 C. Economic Report and Outlook 9 Consolidated Statement of Financial Position as of 12/31/2017 77 D. Research and Development 27 Consolidated Statement of Cash Flow 2017 78 E. Group Relationships 29 Consolidated Statement of Changes in Shareholders’ Equity 2017 79 F. Opportunities/Risk report 32 G. Non-financial Statement 35 NOTES TO THE CONSOLIDATED FINANCIAL H. Notes on the Management Report 72 STATEMENTS AS OF 12/31/2017 80 A. Basis and Methods 80 Glossary of terms 73 B. Notes on the Consolidated Statement of Financial Position Statement pursuant to Article 82 (4) clause 3 Stock Exchange Act 74 and the Consolidated Income Statement 95 C. Other Notes to the Consolidated Financial Statements 120 AUDITOR’S REPORT 149 ÖBB-Infrastruktur Aktiengesellschaft Consolidated Management Report | Consolidated Financial Statements Consolidated Management Report A. Group Structure and Investments 2 The ÖBB-Infrastruktur Group must ensure the economic and efficient use of Austria's railway infrastructure and its availability to all railway operators on a non-discriminatory basis. At the same time, the ÖBB-Infrastruktur Group builds Austria's railway infrastructure on behalf of the Republic of Austria. The financing of the capital expenditures in rail infrastructure development is ensured through the cash flow generated, outside capital and guarantees and investment grants from the federal government on the basis of multi-year master plans. Management, development and utilization of real estate belonging to the ÖBB Group is the responsibility of ÖBB-Immobilienmanagement Gesellschaft mbH, a subsidiary of ÖBB-Infrastruktur AG. ÖBB-Infrastruktur AG operates an integrated management system that supports the improvement of corporate quality, especially in the area of structure. "Structure" means all tasks, competencies, responsibilities, processes and regulations within the company with regard to all aspects of content. ÖBB-Infrastruktur AG and its major subsidiaries are certified according to the relevant international standards: SMS in accordance ISO 9001: ISO 14001: OHSAS 18001: with EisbG 2015 2015 2007 Section 39 SCC ÖBB-Infrastruktur AG X X X X ÖBB-Immobilienmanagement Gesellschaft mbH X X X (9001:2008) (14001:2004) Rail Equipment GmbH & Co KG X X X Mungos Sicher & Sauber GmbH & Co KG X X X The integrated management system follows the generally accepted management cycle Plan-Do-Check-Act. The Board of Management of ÖBB-Infrastruktur AG is informed of the measures, goals and effectiveness of the integrated management system as part of an annual management evaluation. The parent company Österreichische Bundesbahnen-Holding Aktiengesellschaft (hereinafter ÖBB-Holding AG) is a joint- stock corporation under Austrian law. The registered office of the company is at Am Hauptbahnhof 2, A-1100 Vienna, and the company is registered in the Company Register at the Commercial Court Vienna under number FN 247642f. The federal government holds all shares in ÖBB-Holding AG, which holds all shares in ÖBB-Infrastruktur AG. Investments All of ÖBB-Infrastruktur Group’s investments are listed in detail in the investment overview in the annex to the Group’s consolidated financial statements. An overview of the number of investments in Austria and abroad (incl. ÖBB- Infrastruktur AG) is provided below: as of Dec 31, as of Dec 31, 2017 2016 Investments >50% 24 24 Investments 20-50% 3 3 thereof abroad 1 1 Investments <20% 4 3 thereof abroad 2 1 Total 31 30 thereof abroad 3 2 The ÖBB-Infrastruktur Group The ÖBB-Infrastruktur Group, with a total of 18,172 employees, operates 1,070 stations and stops in Austria, as well as the rail infrastructure used by ÖBB-Personenverkehr AG, Rail Cargo Austria AG, two other companies belonging to the ÖBB Group and other railway operators (RO) not belonging to the ÖBB Group. ÖBB-Infrastruktur Aktiengesellschaft Consolidated Management Report | Consolidated Financial Statements ÖBB-Infrastruktur AG has the following material subsidiaries and investments: 3 ÖBB-Immobilienmanagement Gesellschaft mbH offers modern real estate services, both within the Group and externally. ÖBB owns around 25,700 buildings, making it one of Austria’s largest property owners. ÖBB-Immobilienmanagement Gesellschaft mbH – a wholly-owned subsidiary of ÖBB-Infrastruktur AG – provides integrated real estate services, primarily within ÖBB Group. Its responsibilities include the sale and utilization of real estate, project development, implementation of the railway station offensive, property management, facility management, space management and contract processing for film productions and events at railway stations. It develops and sells properties that are not necessary for operations, and is responsible for the life cycle management of an extensive portfolio of 5,000 buildings and 1,100 stations and stops. The services portfolio comprises both commercial and technical facility management and facilities responsibility for virtually every building owned by ÖBB Group, including train stations. Its responsibilities also include the preparation of quality standards and testing systems relevant to building construction. Across Austria, a team of 780 employees ensures professional and efficient management of the extensive services portfolio. The ÖBB- Infrastruktur sub-group was able to contribute EUR 78.3 million (prior year: approx. EUR 77.5 million) to profits (revenues less carrying values and provisions) in financial year 2017 from the sale of properties. Mungos Sicher & Sauber GmbH & Co KG cleans the railway stations, and provides special cleaning services, such as graffiti removal, as well as security and other services. On January 1, 2017, Mungos took over the role as general service provider for operational security services in the ÖBB Group. This means that all security services are being provided by Mungos itself or contracted out by Mungos. The main advantages to this are the establishment of uniform quality standards at Austria's railway stations and the use of the synergies with existing infrastructures. The procurement and Group-wide rental and utilization of specialty rail vehicles and equipment and road vehicles, their purchasing, financing, servicing, and maintenance are the responsibility of Rail Equipment GmbH & Co KG. Güterterminal Werndorf Projekt GmbH was established under a private partnership model to create the Werndorf freight terminal and was acquired by the ÖBB-Infrastruktur Group in 2012. WS Service GmbH was established at the end of 2013 and provides services for and in connection with switch points, and thus in particular their maintenance, inspection, and repair. ÖBB-Infrastruktur AG holds 51% of WS Service GmbH. Weichenwerk Wörth GmbH is Austria’s market leader in the production of switch points, insulated rail joints, and switch-related logistics services and has also positioned itself as an exporter to Southeastern and Western Europe primarily in the areas of superstructure and industrial switch points. The holding in Weichenwerk Wörth GmbH amounts to 43.05%. In order to meet the expectations and increases in rail freight transport in the future and with a view to clearing the inner-city areas of the Vienna Northwest rail freight station, ÖBB-Güterzentrum Wien Süd Betriebsgesellschaft m.b.H. and ÖBB-Güterzentrum Wien Süd Betriebsgesellschaft m.b.H. & Co KG were founded in June and December 2016, respectively, as wholly-owned subsidiaries of ÖBB-Infrastruktur AG. ÖBB-Güterzentrum Wien Süd Betriebsgesellschaft m.b.H. acts as general partner of ÖBB-Güterzentrum Wien Süd Betriebsgesellschaft m.b.H. & Co KG. Since January 1, 2017, the company has been operating the freight center in Vienna South. In addition to traditional transshipment services in combined transport, logistics services such as the loading and unloading of containers with goods, which are also brought to Vienna South by rail, are also offered. A long-term cooperation agreement has been concluded with the world's second-largest shipping company, Mediterranean Shipping Company (MSC). MSC uses the new location in Vienna South as a central base for the supply of empty containers in Central Europe. Since 2011, ÖBB-Infrastruktur AG has held a 50% stake in Galleria di Base del Brennero - Brenner Base Tunnel BBT SE and thus in the major project "Construction of the Brenner Base Tunnel". The necessary funding is provided to ÖBB- Infrastruktur AG in addition to the applicable master plan of the Republic of Austria. For the acquisition of the shares, the Republic of Austria has made a shareholder contribution to ÖBB-Infrastruktur AG via ÖBB-Holding AG in the amount of the cost of the investment. The object of Breitspur Planungsgesellschaft mbH is to plan the continuation of the 1,520-millimeter broad-gauge rail infrastructure from the border of Ukraine through Slovakia to and within Austria. The stake in this company amounts to 25%. Other major subsidiaries of the ÖBB-Infrastruktur Group are ÖBB-Realitätenbeteiligungs GmbH & Co KG, Elisabethstraße 7 Projektentwicklung GmbH & CO KG, Elisabethstraße 9 Projektentwicklung GmbH & Co KG, Gauermanngasse 2–4 Projektentwicklung GmbH & Co KG, Operngasse 16 Projektentwicklung GmbH & Co KG, Mariannengasse 16–20 Projektentwicklung GmbH &