Changes in the scope of consolidation

The changes made in the scope of consolidation during the first half of the business year 2024/25 were as follows:

The following fully consolidated entities were deconsolidated during the first half of the business year 2024/25:

The following entities are being included in the Interim Consolidated Financial Statements for the first time as of the first half of the business year 2024/25:

The additions of fully consolidated entities to the scope of consolidation include one acquisition.

On July 10, 2024, voestalpine Böhler Welding Group GmbH, a company of the Metal Engineering Division, acquired control over 90% of the shares in the premium welding wire manufacturer Italfil S.p.A., Gazzo Padovano, Italy, with around 110 employees.

With the acquisition of Italfil S.p.A., the Welding business unit is taking a further step towards becoming a full-service provider for the “perfect weld seam.” The in-house production range is thus essentially supplemented by unalloyed and low-alloy solid wires, which are used in particular for demanding, highly automated welding applications and surface protection.

The acquisition has the following impact on the interim Consolidated Financial Statements:

The goodwill of EUR 8.0 million arises from the company’s earnings potential and the effects of the integration and expansion of the overall portfolio of the Welding business unit. In accordance with IFRS, this difference cannot be allocated to individually capitalizable items and is allocated to the goodwill-carrying Welding unit. It is not expected that portions of the recognized goodwill will be deductible for corporate income tax purposes.

Since initial consolidation, the acquisition has contributed revenue of EUR 6.4 million to consolidated revenue. The share of the Group’s profit after taxes for the same period amounted to EUR 0.0 million. If the company acquisition had already been consolidated as of April 1, 2024, reported consolidated revenue would have been around EUR 9.9 million higher and reported Group’s profit after taxes around EUR 1.1 million lower.

As part of the first-time full consolidation of Italfil S.p.A., fair values for trade receivables amounting to EUR 9.2 million (gross carrying amount: EUR 9.2 million) and other receivables amounting to EUR 1.9 million (gross carrying amount: EUR 1.9 million) were taken over. Receivables expected to be irrecoverable are considered immaterial.

In August 2024, voestalpine Railway Systems Nortrak LLC, a company of the Metal Engineering Division, acquired the assets for the production of turnouts and turnout components with around 75 employees at the site in Knoxville, Tennessee, USA, from Wabtec Components LLC. This asset deal accelerates necessary capacity expansions for the growing North American rail market and strengthens the strategic market position on the U.S. East Coast.

The asset deal has the following impact on the Interim Consolidated Financial Statements:

DISPOSAL GROUP (ASSETS AND LIABILITIES HELD FOR SALE)

On March 14, 2024, the Management Board decided to sell Buderus Edelstahl in the High Performance Metals Division.

The criteria for classifying as “held for sale” were satisfied in the fourth quarter of the business year 2023/24. Buderus Edelstahl has since been classified as a disposal group by the management.

As of September 30, 2024, the disposal group included assets of EUR 48.6 million and liabilities of EUR 95.2 million. In the first half of the business year 2024/25, the binding offers received in the meantime resulted in an additional impairment requirement of EUR 82.6 million, of which EUR 81.0 million was allocated to current assets and is recognized in cost of sales. EUR 1.6 million relates to non-current assets and is recognized in other operating expenses, as a result of which the non-current assets were fully depreciated.

On October 22, 2024, the negotiations for the sale were concluded with the signing of the contract. The equity entrepreneur Mutares SE & Co. KGaA takes over the special steel company based in Wetzlar, subject to approval by the relevant competition authorities. Based on the management’s assessment, the signing of the contract is not expected to have any further significant impact on earnings. The transaction is expected to be closed by the end of the 2024 calendar year.