In the first half of the business year 2014/15, investments amounting to EUR 427.1 million exceeded depreciation totaling EUR 312.2 million. This essentially led to an increase of the non-current assets from EUR 7,168.0 million to EUR 7,242.8 million—despite the disposal of assets. Inventories remained almost unchanged compared to March 31, 2014. Cash and cash equivalents increased by EUR 320.3 million to EUR 852.7 million—due, among other things, to the assumption of long-term borrowings.
voestalpine Polynorm Van Niftrik B.V and voestalpine Polynorm Plastics B.V. (together voestalpine Plastics Solutions) are shown as “Disposal Group” under IFRS 5 in the interim consolidated financial statements as of September 30, 2014. These two entities are part of the operating segment Metal Forming Division. On September 30, 2014, the voestalpine Group agreed with the Austrian POLYTEC Group that it would sell all of its shares in these two entities subject to antitrust approval and the formal advice of the Work Councils. The decisive factor behind this sale is the company’s rapidly increasing strategic divergence from voestalpine’s core business. The sale is scheduled to close by the beginning of November 2014. 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 underfloor paneling components, 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 applications will be covered by strategic partnerships with global manufacturers, including for hybrid components.
As of June 30, 2014, voestalpine AG’s share capital amounted to EUR 313,309,235.65 (March 31, 2014: EUR 313,309,235.65) and is divided into 172,449,163 shares (March 31, 2014: 172,449,163). The Company held 28,597 of its own shares as of the reporting date. In the first half of the business year 2014/15, the Company neither bought nor sold any of its own shares.
Effective October 16, 2007, voestalpine AG issued a hybrid bond subordinated to all other creditors with a total issue volume of EUR 1 billion. The bond has an indefinite term and a 7.125% coupon rate. The Company may defer coupon payments if no dividends are being paid. As the hybrid bond satisfies the IAS 32 criteria for equity, the proceeds from the bond issues are recognized as part of equity. Accordingly, coupon payments are also reported as part of appropriation of profit. In the fourth quarter of the business year 2012/13, voestalpine AG issued a new subordinated bond with an indefinite term (hybrid bond 2013) with a volume of EUR 500 million following an invitation extended to the holders of the hybrid bond to exchange their existing investment for a new hybrid bond on a 1:1 basis. As a result of this exchange, the outstanding nominal value of the hybrid bond 2007 is therefore EUR 500 million. The nominal value of both the hybrid bond 2007 and the hybrid bond 2013 again totals EUR 1 billion. On September 9, 2014, the Management Board of voestalpine AG adopted a resolution to call the entire issue of hybrid bond 2007 (issued by voestalpine AG in 2007) effective on the first possible call date for this bond, namely October 31, 2014 (redemption date). Accordingly, the hybrid bond 2007 is recognized as part of borrowed capital in the present interim consolidated financial statements. The interest payments for the hybrid bond 2007 from September 10, 2014 on will be recognized in the consolidated statement of comprehensive income. The hybrid bond 2013 is not affected by this call of hybrid bond 2007.
Profit for the period amounting to EUR 324.0 million has contributed to the increase in equity. For the business year 2013/14, a dividend per share of EUR 0.95 was decided upon at the Annual General Meeting on July 2, 2014. Therefore, voestalpine AG distributed dividends amounting to EUR 163.8 million to its shareholders during the current business year. Interest (until September 9, 2014) for the hybrid capital 2007 amounting to EUR 30.5 million (distributed on October 31, 2014) was also deducted from equity in the form of a dividend. The previously described call of the hybrid bond 2007 (EUR 500 million)—and its associated recognition as part of borrowed capital—reduces equity accordingly.