C. Scope of consolidated financial statements

The consolidated Group (see “Investments” appendix to the notes) is defined in accordance with IFRS. In addition to the annual financial statements of voestalpine AG, the consolidated financial statements also include the financial statements of entities controlled by voestalpine AG (and its subsidiaries). Entities controlled by voestalpine AG which are not included in the financial statements of voestalpine AG, are negligible, both individually and collectively.

Subsidiaries are entities controlled by the Group. Control exists when the voestalpine Group has the power over the investee, is exposed to variable returns and has the ability to use its power over the investee to affect the amount of the investor’s returns. The annual financial statements of subsidiaries are included in the consolidated financial statements as of the point in time at which the Group acquires control over the subsidiary and extends to the point in time at which the Group ceases to exercise control over the subsidiary.

Associates are entities over which the voestalpine Group has significant influence through participating in the financial and operating policy decisions, but not control or joint control of those policies. Joint ventures are joint arrangements in which partner companies (the voestalpine Group and one or more partners) exercise joint control over the arrangement and possess rights to the company’s net assets. The annual financial statements of associates and joint ventures are included in the consolidated financial statements using the equity method from the acquisition date until disposal date. The Group’s associates and joint ventures are listed in the “Investments” appendix to the notes.

Changes in scope of consolidated financial statements

The scope of consolidated financial statements changed as follows during the business year under review:

The following entities were deconsolidated during the business year 2014/15:

On July 4, 2014, the voestalpine Group agreed with the Dutch industrial group Aalberts Industries N.V. that it would sell all of its shares in the Flamco Group (part of the operating segment Metal Forming Division), headquartered in Bunschoten (NL). In the voestalpine consolidated financial statements, the Flamco Group is recorded as Heating & Installation Components, an independent entity, and the Group was deconsolidated in the second quarter of 2014/15. The sale ended as of August 13, 2014. The decisive factor behind the divestment was Flamco’s increasingly strong divergence from the strategic core business of voestalpine (lack of synergies within the Metal Forming Division and significant differences in its customer portfolio compared to the other division companies). The Flamco Group has been part of the voestalpine Group for over a decade, and it develops, produces, and markets branded quality components for HVAC systems worldwide. Flamco has production facilities in the Netherlands, Germany, UK, and China. With almost 700 employees worldwide, most recently, the company generated annual revenue of around EUR 125 million.

The disposal had the following effect on the consolidated financial statements:

On September 30, 2014, the voestalpine Group agreed with the Austrian POLYTEC Group that it would sell all of its shares in voestalpine Polynorm Van Niftrik B.V. and voestalpine Polynorm Plastics B.V. (together voestalpine Plastics Solutions). The sale ended as of November 26, 2014. These two entities are part of the operating segment Metal Forming Division, and they were deconsolidated in the third quarter of 2014/15. The decisive factor behind this sale was the company’s rapidly increasing strategic divergence from voestalpine’s core business. Last year, the Plastics Solutions business segment generated revenue of around EUR 120 million at the two Dutch sites Putte and Roosendaal and employed a staff of almost 700 persons. Its products include underbody paneling, acoustic, and exterior components for commercial vehicles as well as non-automotive products. The major customers are primarily European OEMs (original equipment manufacturers). In the future, these fields of application, including hybrid components, will be covered by strategic partnerships with global manufacturers.

The disposal had the following effect on the consolidated financial statements:

The sale of the Swedish branch of the voestalpine Rotec Group was finalized on February 6, 2015. voestalpine Rotec AB was sold to Stalrör AB. The reason for the sale was consistent pursuit of corporate strategic alignment and focus on further-processed products. voestalpine Rotec AB employed 27 staff members and achieved annual sales amounting to roughly EUR 15.5 million. The core business of the Swedish subsidiary is in the field of tubes, primarily precision tubes and special steel tubes for the Scandinavian market. Stalrör specializes in trading activities with tubes (with a focus on hot-rolled tubes, hydraulic tubes) and services (stockholding). Having now sold voestalpine Rotec AB as a trade and services provider, the voestalpine Rotec Group can now focus more fully on strategic alignment in the field of further processing. The voestalpine Rotec locations in Austria and Poland will still supply products to the Swedish company in the future. All staff members of voestalpine Rotec AB will continue their employment in the future.

The disposal had the following effect on the consolidated financial statements: