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B. Summary of accounting policies

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General information

The accounting policies applied to the consolidated financial statements are consistent with those of the previous year with the exceptions listed below.

The following new and revised standards were adopted for the first time in the business year 2014/15:

Standard

 

Content

 

Effective date1

 

 

 

 

 

IFRS 10

 

Consolidated Financial Statements

 

January 1, 2014

IFRS 11

 

Joint Arrangements

 

January 1, 2014

IFRS 12

 

Disclosure of Interests in Other Entities

 

January 1, 2014

IAS 27, new version

 

Separate Financial Statements

 

January 1, 2014

IAS 28, new version

 

Investments in Associates and Joint Ventures

 

January 1, 2014

IAS 32, amendments

 

Financial Instruments: Presentation – Offsetting Financial Assets and Financial Liabilities

 

January 1, 2014

IAS 36, amendments

 

Impairment of Assets – Recoverable Amount Disclosures for Non-Financial Assets

 

January 1, 2014

IAS 39, amendments

 

Novation of Derivatives and Continuation of Hedge Accounting

 

January 1, 2014

IFRS 10, IFRS 11 and IFRS 12, amendments

 

Amendments to IFRS 10, Consolidated Financial Statements, IFRS 11, Joint Arrangements, and IFRS 12, Disclosure of Interests in Other Entities – Transition Guidance

 

January 1, 2014

IFRS 10, IFRS 12 and IAS 27, amendments

 

Amendments to IFRS 10, Consolidated Financial Statements, IFRS 12, Disclosure of Interests in Other Entities, and IAS 27, Separate Financial Statements – Investment Entities

 

January 1, 2014

 

 

 

 

 

1
These standards are applicable to reporting periods beginning on or after the effective date.

IFRS 10 comprehensively redefines the concept of control. This is intended to create a uniform basis for defining the consolidated group. This standard replaces the provisions of the previous IAS 27 “Consolidated and Separate Financial Statements” for consolidated financial statements.

IFRS 11 governs the accounting of entities that jointly control an arrangement that is classified either as a joint venture or a joint operation. This standard replaces IAS 31 “Interests in Joint Ventures” and eliminates the possibility of proportionate consolidation of joint ventures; these are to be included in the consolidated group in the future using equity method accounting. IAS 28 now includes the provisions for associates and joint ventures that are measured based on the equity method under IFRS 11. Starting with the business year 2014/15, the results of entities consolidated according to the equity method are reported under EBIT in the consolidated financial statements. Amended disclosure in EBIT reflects the operational nature of investments accounted for using the equity method. Analogous to corporations, the annual profits (net including taxes) of partnerships included in the consolidated financial statements according to the equity method are also recorded under EBIT. voestalpine Tubulars GmbH and voestalpine Tubulars GmbH & Co KG were proportionately consolidated up to March 31, 2014, and, beginning with the business year 2014/15, the equity method is being applied. The currently seven associates and two further joint ventures, which were already previously accounted for using the equity method, are also recognized in EBIT.

IFRS 12 includes the disclosure requirements for subsidiaries, joint arrangements, associates, and unconsolidated structured entities, which resulted in additional disclosures in the consolidated financial statements of voestalpine AG.

Changes to IFRS 10, IFRS 11, and IFRS 12 were published in June 2012 in order to clarify the content and scope of certain guidelines regarding their first-time application.

Changes to IFRS 10, IFRS 12, and IAS 27 were published in October 2012 in order to create an exception for qualified investment entities from the regulation requiring consolidation of subsidiaries.

The amendments to IAS 32 clarify the requirements for offsetting financial instruments in the statement of financial position; as a result, new provisions governing disclosures have been added to IFRS 7.

The changes to IAS 36 represent a correction of disclosure requirements regarding the recoverable amount for non-financial assets that were changed to a greater extent than intended in connection with IFRS 13.

Due to the change to IAS 39, the novation of a hedging instrument to a central counterparty as a result of statutory requirements does not result in a dissolution of a hedge relationship under certain conditions.

In order to reflect the adjustments caused by the application of IFRS 11 and the change in the method of disclosure for results of entities consolidated according to the equity method (formerly reported as part of the financial result; from April 1, 2014 onward, reported as part of EBIT), the business year 2013/14 was retroactively adjusted. In these consolidated financial statements, the tax effects on hybrid capital interest and on costs associated with issuing hybrid capital are furthermore reported directly in equity (and no longer in the consolidated statement of comprehensive income) in accordance with IAS 8. These two items were also retroactively adjusted in the comparative period of 2013/14.

The consequences of the described retroactive adjustments are as follows:

Change in the consolidated statement of financial position

 

 

 

(XLS:) Download

04/01/2013

 

Values as originally reported

 

Adjustment

 

Values retroactively adjusted

 

 

 

 

 

 

 

Total assets

 

13,079.3

 

13.7

 

13,093.0

thereof Property, plant and equipment

 

4,580.6

 

–26.8

 

4,553.8

thereof Other intangible assets

 

320.9

 

–0.6

 

320.3

thereof Investments in entities consolidated according to the equity method

 

156.4

 

77.6

 

234.0

thereof Other financial assets non-current

 

109.2

 

–0.5

 

108.7

thereof Deferred tax assets

 

343.6

 

–1.4

 

342.2

thereof Inventories

 

2,876.9

 

–37.4

 

2,839.5

thereof Trade and other receivables

 

1,655.5

 

2.9

 

1,658.4

thereof Cash and cash equivalents

 

1,092.7

 

–0.1

 

1,092.6

 

 

 

 

 

 

 

Total equity and liabilities

 

13,079.3

 

13.7

 

13,093.0

thereof Equity

 

5,075.2

 

0.7

 

5,075.9

thereof Pensions and other employee obligations

 

1,004.6

 

–12.9

 

991.7

thereof Financial liabilities non-current

 

2,558.8

 

–0.2

 

2,558.6

thereof Provisions current

 

612.2

 

–6.5

 

605.7

thereof Financial liabilities current

 

1,324.6

 

47.1

 

1,371.7

thereof Trade and other payables

 

2,139.7

 

–14.5

 

2,125.2

 

 

 

 

 

 

 

 

 

 

In millions of euros

Change in the consolidated statement of financial position

 

 

 

(XLS:) Download

03/31/2014

 

Values as originally reported

 

Adjustment

 

Values retroactively adjusted

 

 

 

 

 

 

 

Total assets

 

12,637.5

 

–2.6

 

12,634.9

thereof Property, plant and equipment

 

4,772.0

 

–30.1

 

4,741.9

thereof Other intangible assets

 

336.7

 

–0.5

 

336.2

thereof Investments in entities consolidated according to the equity method

 

133.4

 

81.3

 

214.7

thereof Other financial assets non-current

 

91.0

 

–0.4

 

90.6

thereof Deferred tax assets

 

313.5

 

–1.2

 

312.3

thereof Inventories

 

2,937.2

 

–53.5

 

2,883.7

thereof Trade and other receivables

 

1,619.1

 

1.9

 

1,621.0

thereof Cash and cash equivalents

 

532.5

 

–0.1

 

532.4

 

 

 

 

 

 

 

Total equity and liabilities

 

12,637.5

 

–2.6

 

12,634.9

thereof Equity

 

5,261.0

 

0.6

 

5,261.6

thereof Pensions and other employee obligations

 

1,028.9

 

–13.6

 

1,015.3

thereof Financial liabilities non-current

 

2,596.9

 

–0.1

 

2,596.8

thereof Provisions current

 

504.7

 

–6.8

 

497.9

thereof Financial liabilities current

 

806.2

 

25.6

 

831.8

thereof Trade and other payables

 

2,094.9

 

–8.3

 

2,086.6

 

 

 

 

 

 

 

 

 

 

In millions of euros

Change in the consolidated income statement

 

(XLS:) Download

2013/14

 

Values as originally reported

 

Adjustment

 

Values retroactively adjusted

 

 

 

 

 

 

 

Revenue

 

11,227.9

 

–150.7

 

11,077.2

Cost of sales

 

–8,938.3

 

71.2

 

–8,867.1

Gross profit

 

2,289.6

 

–79.5

 

2,210.1

 

 

 

 

 

 

 

Other operating income

 

360.6

 

–1.5

 

359.1

Distribution costs

 

–976.5

 

23.4

 

–953.1

Administrative expenses

 

–589.1

 

2.9

 

–586.2

Other operating expenses

 

–292.3

 

–1.3

 

–293.6

Share of profit of entities consolidated according to the equity method

 

0.0

 

52.1

 

52.1

EBIT

 

792.3

 

–3.9

 

788.4

 

 

 

 

 

 

 

Share of profit of entities consolidated according to the equity method

 

12.0

 

–12.0

 

0.0

Finance income

 

40.5

 

0.1

 

40.6

Finance costs

 

–188.8

 

0.6

 

–188.2

Profit before tax (EBT)

 

656.0

 

–15.2

 

640.8

 

 

 

 

 

 

 

Income tax expense

 

–133.1

 

–4.3

 

–137.4

Profit for the period

 

522.9

 

–19.5

 

503.4

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

Equity holders of the parent

 

448.1

 

–1.7

 

446.4

Non-controlling interests

 

3.2

 

0.0

 

3.2

Share planned for hybrid capital owners

 

71.6

 

–17.8

 

53.8

 

 

 

 

 

 

 

Basic and diluted earnings per share (euros)

 

2.60

 

–0.01

 

2.59

 

 

 

 

 

 

 

 

 

 

In millions of euros

The positive income tax expense effect on hybrid capital interest of EUR 17.8 million in the business year 2013/14 has now been recognized retroactively directly in equity rather than in the statement of comprehensive income.

Change in the consolidated statement of comprehensive income

 

(XLS:) Download

2013/14

 

Values as originally reported

 

Adjustment

 

Values retroactively adjusted

 

 

 

 

 

 

 

Profit for the period

 

522.9

 

–19.5

 

503.4

 

 

 

 

 

 

 

Items of other comprehensive income that will be subsequently reclassified to profit or loss

 

 

 

 

 

 

Cash flow hedges

 

–1.2

 

0.0

 

–1.2

Currency translation

 

–107.9

 

0.0

 

–107.9

Share of profit of entities consolidated according to the equity method

 

–3.8

 

1.6

 

–2.2

Subtotal of items of other comprehensive income that will be subsequently reclassified to profit or loss

 

–112.9

 

1.6

 

–111.3

 

 

 

 

 

 

 

Items of other comprehensive income that will not be reclassified to profit or loss

 

 

 

 

 

 

Actuarial gains/losses

 

–28.0

 

0.1

 

–27.9

Share of profit of entities consolidated according to the equity method – Actuarial gains/losses

 

–0.2

 

–0.1

 

–0.3

Subtotal of items of other comprehensive income that will not be reclassified to profit or loss

 

–28.2

 

0.0

 

–28.2

Other comprehensive income for the period, net of income tax

 

–141.1

 

1.6

 

–139.5

Total comprehensive income for the period

 

381.8

 

–17.9

 

363.9

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

Equity holders of the parent

 

310.2

 

–0.1

 

310.1

Non-controlling interests

 

0.0

 

0.0

 

0.0

Share planned for hybrid capital owners

 

71.6

 

–17.8

 

53.8

Total comprehensive income for the period

 

381.8

 

–17.9

 

363.9

 

 

 

 

 

 

 

 

 

 

In millions of euros

Change in the consolidated statement of cash flows

 

(XLS:) Download

2013/14

 

Values as originally reported

 

Adjustment

 

Values retroactively adjusted

 

 

 

 

 

 

 

Operating activities

 

 

 

 

 

 

Profit for the period

 

522.9

 

–19.5

 

503.4

Adjustments

 

652.5

 

10.1

 

662.6

Changes in working capital

 

–258.4

 

27.0

 

–231.4

 

 

 

 

 

 

 

Cash flows from operating activities

 

917.0

 

17.6

 

934.6

Cash flows from investing activities

 

–786.6

 

3.9

 

–782.7

Cash flows from financing activities

 

–674.2

 

–21.5

 

–695.7

 

 

 

 

 

 

 

Net decrease/increase in cash and cash equivalents

 

–543.8

 

0.0

 

–543.8

Cash and cash equivalents, beginning of period

 

1,092.7

 

–0.1

 

1,092.6

Net exchange differences

 

–16.4

 

0.0

 

–16.4

Cash and cash equivalents, end of period

 

532.5

 

–0.1

 

532.4

 

 

 

 

 

 

 

 

 

 

In millions of euros

With the exception of the described effects of IFRS 11, the new and revised standards had no material effects on voestalpine AG’s consolidated financial statements.

The following standards are already published as of the reporting date, but their application was not yet mandatory for the business year 2014/15 or they have not been adopted by the European Union:

Adopted by the European Union as of the reporting date:

Standard

 

Content

 

Effective date1

 

 

 

 

 

IAS 19, amendments

 

Defined Benefit Plans: Employee Contributions

 

July 1, 2014

Various standards, amendments

 

Annual Improvements to International Financial Reporting Standards, 2010–2012 Cycle

 

July 1, 2014

Various standards, amendments

 

Annual Improvements to International Financial Reporting Standards, 2011–2013 Cycle

 

July 1, 2014

 

 

 

 

 

1
These standards are applicable to reporting periods beginning on or after the effective date.

Published by IASB but not adopted by the European Union as of the reporting date:

Standard

 

Content

 

Effective date according to IASB1

 

 

 

 

 

IAS 1, amendments

 

Disclosure initiative

 

January 1, 2016

IAS 16 and IAS 38, amendments

 

Clarification of Acceptable Methods of Depreciation and Amortization

 

January 1, 2016

IAS 16 and IAS 41, amendments

 

Agriculture: Bearer Plants

 

January 1, 2016

IAS 27, amendments

 

Equity Method in Separate Financial Statements

 

January 1, 2016

Various standards, amendments

 

Annual Improvements to International Financial Reporting Standards, 2012–2014 Cycle

 

January 1, 2016

IFRS 10 and IAS 28, amendments

 

Sale or Contribution of Assets between an Investor and its Associate or Joint Venture

 

January 1, 2016

IFRS 10, IFRS 12 and IAS 28, amendments

 

Investment Entities: Applying the Consolidation Exception

 

January 1, 2016

IFRS 11, amendments

 

Accounting for Acquisitions of Interests in Joint Operations

 

January 1, 2016

IFRS 14

 

Regulatory Deferral Accounts

 

January 1, 2016

IFRS 15

 

Revenue from Contracts with Customers

 

January 1, 2017

IFRS 9

 

Financial Instruments

 

January 1, 2018

 

 

 

 

 

1
These standards are applicable to reporting periods beginning on or after the effective date.

These standards—in so far as they have been adopted by the European Union—are not being adopted early by the Group. From today’s perspective, material effects of the new and revised standards on the voestalpine Group’s financial situation and profitability are not expected.

The use of automated calculation systems may result in rounding differences.

Basis of consolidation

Foreign currency translation

Uncertainties in accounting estimates and assumptions

Recognition of revenue and expenses

Property, plant and equipment

Leases

Goodwill

Other intangible assets

Impairment testing of goodwill, other intangible assets, and property, plant and equipment

Financial instruments

Other investments

Income taxes

Inventories

Emission certificates

Trade and other receivables

Cash and cash equivalents

Pensions and other employee obligations

Other provisions

Contingent liabilities

Liabilities

Employee stock ownership plan

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About voestalpine

The voestalpine Group is a steel-based technology and capital goods group that operates worldwide. With its top-quality products, the Group is one of the leading partners to the automotive and consumer goods industries in Europe and to the oil and gas industries worldwide.

Facts

50 Countries on all 5 continents
500 Group companies and locations
48,100 Employees worldwide

Earnings FY 2014/15

€ 11.2 Billion

Revenue

€ 1.5 Billion

EBITDA

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