Scope of consolidated financial statements/acquisitions

The changes made in the scope of consolidated financial statements during the reporting period were as follows:

The following entities were deconsolidated during the first half of the business year 2013/14:

The following entities were included in the interim consolidated financial statements for the first time during the first half of the business year 2013/14:

Additions to the scope of consolidated financial statements of fully consolidated entities include one acquisition, two start-ups, and the consolidation of four previously non-consolidated entities – including a fund of funds (additions resulting from the change in the consolidation method) that was fully consolidated as of April 1, 2013. The effect on the interim consolidated financial statements is to be considered immaterial.

In accordance with IFRS 3, the acquired companies are included in the interim consolidated financial statements at the fair value of the acquired assets, liabilities, and contingent liabilities determined as of the acquisition date, including depreciation and amortization as appropriate. The carrying amount of the non-controlling interests is determined based on the fair values carried forward for the assets and liabilities acquired. In accordance with IFRS 3, property, plant and equipment, intangible assets, inventories, and provisions shall be considered provisional due to uncertainties.

The increase of majority interests is treated as a transaction between owners. The difference between the costs of acquisition for the additional shares and the pro-rated carrying value of the non-controlling interests is recognized directly in equity. During the first half of the business year 2013/14, EUR 5.3 million (2012/13: EUR 14.9 million) was paid or provisions for the payment thereof made for the acquisition of non-controlling interests. Non-controlling interests amounting to EUR 2.9 million (2012/13: EUR 7.7 million) were derecognized, and the remaining amount of EUR 2.4 million (2012/13: EUR 7.2 million) was charged directly in equity.

Put options granted to non-controlling shareholders in exchange for their shares in Group companies are disclosed in the statement of financial position as liabilities stated at fair value. If the risks and rewards associated with ownership of a non-controlling interest have already been transferred at the time the majority interest was acquired, an acquisition of 100% of the entity is assumed. Where the risks and rewards have not been transferred, the non-controlling interest continues to be shown in equity. The liability is covered by a direct transfer from retained earnings with no effect on profit or loss (double credit approach).

Open put options, which are charged against equity, had a fair value of EUR 0.6 million (March 31, 2013: EUR 10.0 million) as of September 30, 2013.

In the first quarter of the current business year, the Metal Engineering Division acquired the Italian company Trafilerie di Cittadella S.p.A. voestalpine Böhler Welding Group GmbH thus holds 90% of the shares of this company specialized in the manufacture of high-quality seamless flux cored wire, which is especially suited for welding high-strength, cryogenic, and high- temperature steels. Trafilerie di Cittadella S.p.A. generated annual revenue of EUR 13.7 million with 60 employees in 2012. The Special Steel Division acquired Rieckermann Steeltech Ltd. (Shanghai) and P.M. Technology Ltd. (Shenzhen) – representing the second acquisition during this business year. In detail, within the framework of an asset deal, the division acquired the corresponding production and service sites in China, which employ a total of around 100 employees. These acquisitions have expanded the distribution network in China and strengthened the regional presence in the field of sophisticated special materials for oil and gas production, the energy and fuel sector as well as the aviation industry.

These two acquisitions had the following effects on the interim consolidated financial statements:

Since their initial consolidation, these two acquisitions have contributed revenue of EUR 7.5 million to consolidated revenue. Their share of the Group’s profit for the period was EUR –0.4 million for the same period. The consolidated revenue would have been EUR 2.9 million higher and the Group’s profit for the period would have been EUR 0.2 million higher if the two acquisitions had been consolidated as of April 1, 2013.

Fair values were applied for trade receivables in the amount of EUR 2.9 million and other receivables in the amount of EUR 0.3 million as part of the acquisition of Trafilerie di Cittadella S.p.A. The expected uncollectable receivables are immaterial.