Today. For tomorrow. For us. ANNUAL REPORT 2019 ÖBB-INFRASTRUKTUR AG Contents CONSOLIDATED MANAGEMENT REPORT 2 CONSOLIDATED FINANCIAL STATEMENTS 80 A. Group structure and investments 2 Consolidated Income Statement 2019 80 B. General conditions and market environment 5 Consolidated Statement of Comprehensive Income 2019 81 C. Economic report and outlook 10 Consolidated Statement of Financial Position as of Dec 31, 2019 82 D. Research and development 29 Consolidated Statement of Cash Flows 2019 83 E. Group relationships 31 Consolidated Statement of Changes in Equity 2019 84 F. Opportunity and risk report 32 G. Non-financial statement 37 Notes to the Consolidated Financial Statements as of Dec 31, 2019 H. Notes to the Group Management Report 77 85 A. Basis and Methods 85 Glossary 78 B. Notes to the Consolidated Statement of Financial Position Statement pursuant to Section 124 (1) of the and the Consolidated Income Statement 106 Stock Exchange Act 79 C. Other Notes to the Consolidated Financial Statements 133 Audit Certificate 162 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 aavailabilityvailability 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 utilisation of real estate belonging to the ÖBB Group is the responsibility of ÖBB-Immobilienmanagement Gesellschaft mbH, a subsidiary of ÖBB-Infrastruktur AG. The following process map provides an overview of all the company's essential and value-added processes. The focus here is on presenting the various correlations together with a focus on customers and value creation. It is structured according to process category (business, management and support processes) and broken down into different levels of detail. ÖBB-Infrastruktur AG operates a certified integrated management system that supports and monitors improvements in the areas of quality, environmental protection, employee safety and security. External audits are at the beginning of the audit cycle, internal audits support the process of continuous improvement in the corporate group. At the end of the audit period, the efficacy results are included in the management evaluation. 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. ÖBB-Infrastruktur AG and its major subsidiaries are certified according to the relevant international standards listed below. The Asset Management and Strategic Planning division was also able to complete its ISO 55001 certification in addition to the standards stated above for the integrated management system. SMS in accordance with ISO 9001: ISO 14001: OHSAS 18001: ISO 55001: the Federal Railways 2015 2015 2007 2014 Act (EisbG) Section 39 SCC ÖBB-Infrastruktur AG X X X X Asset Managment and Strategic Planning Division X ÖBB-Immobilienmanagement GmbH X X X Rail Equipment GmbH & Co KG X X X Mungos Sicher & Sauber GmbH & Co KG X X X 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. ÖBB-Infrastruktur Aktiengesellschaft Consolidated Management Report | Consolidated Financial Statements Investments 3 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, 2019 2018 Investments >50% 20 23 Investments 20-50% 3 3 thereof abroad 1 1 Investments <20% 3 3 thereof abroad 2 2 Total 26 29 thereof abroad 3 3 The ÖBB-Infrastruktur Group The ÖBB-Infrastruktur Group, with a total of 18,734 employees, operates 1,048 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 undertakings (RUs) not belonging to the ÖBB Group. ÖBB-Infrastruktur AG has the following material subsidiaries and investments: ÖBB-Immobilienmanagement Gesellschaft mbH ÖBB-Immobilienmanagement Gesellschaft mbH offers modern real estate services, both within the Group and externally. ÖBB owns 23,000 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 exploitation of real estate, project development, implementation of the railway station initiative, property management, facility management and space management. It develops and sells properties that are not necessary for operations and is responsible for the life cycle management of an extensive portfolio of 4,038 buildings and 1,048 railway stations and stops. The services portfolio comprises both commercial and technical facility management and facilities responsibility for virtually all superstructures owned by the ÖBB Group, including train stations. Its area of responsibility also includes the creation of quality standards and test systems relevant to structural engineering. Across Austria, a team of about 800 employees ensures professional and efficient management of the extensive services portfolio. For the ÖBB-Infrastruktur Group EUR 50.3 million (PY: EUR 77.7 million) in the financial year 2019 were generated from the sale of properties (revenues less carrying amounts and provisions). In addition to the tasks in facility management in the area of station and property management, the ownership role for all properties (building constructions and land) as well as for passenger stations should be emphasised. ÖBB- Immobilienmanagement GmbH is therefore responsible for the overall appearance of the railway station for the purposes of the mobility chain, with station buildings, forecourts, streets, paths, park & ride facilities, customer sanitary facilities, platforms up to the edge of the platform, etc. It is the qualified point of contact both within the Group and for customers, neighbouring residents, local authorities and interest groups. Some of the most important meaningful quality indicators of ÖBB real estate management are: quality check, malfunction indicators and complaints. The overall target value set for customer satisfaction (average of all categories in QC) was achieved in 2019. There was even a slight increase achieved in customer satisfaction as compared with 2018. The requirements related to cleanliness and maintenance with respect to the target value defined for 2019 were exceeded slightly, and the annual result in the area of safety is also within the target value range. A slight increase was achieved in accessibility as compared with the previous year. The number of system-related immediate measures to be initiated in 2019 declined towards the end of the year. The monthly average of 241 immediate measures was below the number for 2018 (301 immediate measures). The average number of immediate measures for each station also halved to 0.16 from 0.33 in the previous year. The number of immediate measures at the start of the survey in 2013 was comparatively low at 7,000 per month. The total number of complaints in the 2019 financial year amounted to 1,647 and was therefore 5% higher than in 2018. The increase occurred primarily in the service area. An improvement of 8% was achieved in the area of safety as compared with the previous year. The same level was maintained in cleanliness. The breakdown in the number of complaints is as follows: Service complaints 1,181, safety complaints 176, cleanliness complaints 290. Measured against 261.4 million passengers (total number in 2018) this represents 0.63 complaints per 100,000 passengers, which is a minimal increase compared to the previous year (0.60 complaints). ÖBB-Infrastruktur Aktiengesellschaft Consolidated Management Report | Consolidated Financial Statements Mungos Sicher & Sauber GmbH & Co KG 4 Mungos is the Group's internal complete provider of security and cleanliness services. With respect to cleaning services, stations throughout Austria (i.e. the area visible to customers) are cleaned by Mungos staff. The cleaning services include daily or regular maintenance cleaning as well as special cleaning (such as cleaning for roofs or the application of floor sealants). The employees’ expertise is particularly significant here: Mungos has employees in every federal province or area who have passed the