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Notes on financial instruments

The following table compares the carrying amounts to the fair values for each class of financial assets and liabilities:

 

 

09/30/2014

 

09/30/2015

 

 

Carrying amount

 

Fair value

 

Carrying amount

 

Fair value

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Financial assets measured at amortized cost

 

2,474.8

 

2,474.8

 

1,869.0

 

1,869.0

Financial assets measured at fair value

 

484.0

 

484.0

 

462.0

 

462.0

 

 

2,958.8

 

2,958.8

 

2,331.0

 

2,331.0

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Financial liabilities measured at amortized cost

 

6,246.3

 

6,331.0

 

5,875.4

 

5,979.4

Financial liabilities measured at fair value

 

27.7

 

27.7

 

17.1

 

17.1

 

 

6,274.0

 

6,358.7

 

5,892.5

 

5,996.5

 

 

 

 

 

 

 

 

 

 

In millions of euros

The carrying amount of the financial assets represents a reasonable approximation of fair value.

The liabilities measured at amortized cost, whose fair value is stated, fall under Level 2. Valuation is performed according to the mark-to-market method, whereby the input parameters for the calculation of the market values are the foreign exchange rates, interest rates, and credit spreads observable on the market. Based on the input parameters, fair values are calculated by discounting estimated future cash flows at typical market interest rates.

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

Inputs

Level 1

 

Comprises quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2

 

Comprises inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3

 

Comprises unobservable inputs for the asset or liability.

Level of the fair value hierarchy for recurring fair value measurements

 

(XLS:) Download

 

 

Level 1

 

Level 2

 

Level 3

 

Total

 

 

 

 

 

 

 

 

 

09/30/2015

 

 

 

 

 

 

 

 

Financial assets

 

 

 

 

 

 

 

 

Financial assets measured at fair value through profit or loss

 

 

 

 

 

 

 

 

Held for trading (derivatives)

 

 

 

15.1

 

 

 

15.1

Fair value option (securities)

 

410.2

 

 

 

 

 

410.2

Available for sale at fair value

 

 

 

 

 

36.7

 

36.7

 

 

410.2

 

15.1

 

36.7

 

462.0

 

 

 

 

 

 

 

 

 

Financial liabilities

 

 

 

 

 

 

 

 

Financial liabilities measured at fair value through profit or loss – Held for trading (derivatives)

 

 

 

17.1

 

 

 

17.1

 

 

0.0

 

17.1

 

0.0

 

17.1

 

 

 

 

 

 

 

 

 

09/30/2014

 

 

 

 

 

 

 

 

Financial assets

 

 

 

 

 

 

 

 

Financial assets measured at fair value through profit or loss

 

 

 

 

 

 

 

 

Held for trading (derivatives)

 

 

 

44.0

 

 

 

44.0

Fair value option (securities)

 

398.9

 

 

 

 

 

398.9

Available for sale at fair value

 

 

 

 

 

41.1

 

41.1

 

 

398.9

 

44.0

 

41.1

 

484.0

 

 

 

 

 

 

 

 

 

Financial liabilities

 

 

 

 

 

 

 

 

Financial liabilities measured at fair value through profit or loss – Held for trading (derivatives)

 

 

 

27.7

 

 

 

27.7

 

 

0.0

 

27.7

 

0.0

 

27.7

 

 

 

 

 

 

 

 

 

 

In millions of euros

The underlying assets of the fund of funds are reported as part of the “fair value option.” The designation of fair value was selected to convey more useful information because this group of financial assets is managed according to their fair value, as documented in the risk management and investment strategy, and performance is observed and reported by means of fair value.

The derivative transactions (Level 2) are marked to market by determining the value that would be realized if the hedging position were closed out (liquidation method). The observable currency exchange rates and raw materials prices as well as the interest rates are the input for the calculation of fair values. Fair values are calculated based on the inputs by discounting expected future cash flows at typical market interest rates.

There were no transfers between Level 1 and Level 2, nor any reclassifications into or out of Level 3, during the reporting period. The reconciliation of Level 3 financial assets measured at fair value from the opening balance to the closing balance is depicted as follows:

Level 3 – Available for sale at fair value

 

(XLS:) Download

 

 

04/01–09/30/2014

 

04/01–09/30/2015

 

 

 

 

 

Opening balance

 

41.1

 

36.7

Closing balance

 

41.1

 

36.7

 

 

 

 

 

 

In millions of euros

Level 3 includes the non-consolidated investment in Energie AG Oberösterreich that is measured at fair value as “available for sale at fair value.” The fair value of this company can be reliably determined based on the valuation report done once a year for Energie AG Oberösterreich as a whole.

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

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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