Notes on financial instruments

The financial liabilities measured at amortized cost, excluding bonds issued, fall under Level 2. Valuation is performed using the discounted cash flow method, with the input parameters for the calculation of fair values being the foreign exchange rates, interest rates, and credit spreads observable in the market. Using the input parameters, the fair values are calculated by discounting estimated future cash flows at market interest rates.

Bonds issued are measured using Level 1 inputs based on the quoted price as of the reporting date.

The table below analyzes recurring fair value measurements of financial assets and financial liabilities. These measurements are based on a fair value hierarchy that categorizes the inputs used in the valuation methods applied to measure fair value into three levels. The three levels are defined as follows:

The derivative transactions (Level 2) are measured using the discounted cash flow method by determining the value that would be realized if the hedging position were closed out (liquidation method). The observable foreign exchange rates, raw materials and energy prices, and interest rates are used as inputs for the calculation of fair values. Fair values are calculated using these inputs by discounting expected future cash flows at market interest rates.

The voestalpine Group recognizes transfers between different levels of the fair value hierarchy as of the end of the reporting period in which the change occurred. There were no transfers in the business year 2025/26, or from April 1, 2026, through September 30, 2026.

The table below presents the reconciliation of Level 3 financial assets measured at fair value from the opening balance to the closing balance:

Level 3 includes the equity investment in Energie AG Oberösterreich, which is measured at fair value. The fair value of this entity can be reliably determined based on the valuation report prepared annually for Energie AG Oberösterreich as a whole, taking into account all relevant information.

Significant sensitivities in the determination of fair value may result from changes in the underlying market data of comparable entities and the input factors used to determine the net present value (particularly discount rates, long-term forecasts, planning data, etc.).

The receivables in this portfolio are sold monthly on a rolling basis as part of the Group’s factoring programs. The measurement gains or losses attributable to this portfolio are of secondary significance.

The credit risk associated with a particular debtor is the key factor in determining the fair value of the portfolio “Trade and other receivables held for factoring.” A 1% increase/decrease in the applied default rates would therefore change the fair value of this portfolio by no more than the same amount. However, the resulting change in fair value is generally considerably less than proportionate, as substantial portions of the portfolio are covered by credit insurance.