In the first three quarters of the business year 2015/16, actual investments amounting to EUR 931.5 million exceeded depreciation totaling EUR 480.3 million. Furthermore, additions to assets resulting from the initial full consolidation of voestalpine Tubulars GmbH, voestalpine Tubulars GmbH & Co KG, and CNTT Chinese New Turnout Technologies Co., Ltd. amounting to EUR 326.9 million generated an increase in non-current assets from EUR 7,682.0 million to EUR 8,260.0 million. Besides an operational increase in inventories (see consolidated cash flow statement), the carrying amount of the inventories on the reporting date compared to March 31, 2015 rose by EUR 126.2 million due primarily to the aforementioned initial full consolidation of voestalpine Tubulars GmbH, voestalpine Tubulars GmbH & Co KG, and CNTT Chinese New Turnout Technologies Co., Ltd.
As of December 31, 2015, voestalpine AG’s share capital amounted to EUR 317,851,287.79 (March 31, 2015: EUR 313,309,235.65) and is divided into 174,949,163 shares (March 31, 2015: 172,449,163). The capital increase decided by the Management Board on March 9, 2015, and approved by the Supervisory Board on March 26, 2015, in the amount of 2.5 million shares was recorded in the Commercial Register on April 25, 2015 and is therefore effective as of this date. The Company held 28,597 of its own shares as of the reporting date. In the first three quarters of the business year 2015/16, the Company neither bought nor sold any of its own shares.
In 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. As the hybrid bond satisfies the IAS 32 criteria for equity, the proceeds from the bond issue are recognized as part of equity. Accordingly, coupon payments are also reported as part of appropriation of profit. The issue costs of the hybrid bond 2013 amounted to EUR 2.8 million, less EUR 0.7 million in tax effects. Therefore, equity increased by EUR 497.9 million in the business year 2012/13.
Profit for the period amounting to EUR 508.5 million has contributed to the increase in equity. For the business year 2014/15, a dividend per share of EUR 1.00 was decided upon at the Annual General Meeting on July 1, 2015. Therefore, voestalpine AG distributed dividends amounting to EUR 174.8 million to its shareholders in the current business year.
Provisions for pensions, severance, and long-service bonus obligations are taken into account for the interim consolidated financial statements based on an expert opinion on the forecast for the entire current business year 2015/16. If significant changes of the parameters occur during the year, a reassessment of the net debt is carried out.
During the current business year, an increase of the discount interest rate from 1.5% to 2.0% and a negative performance of the pension fund of –2.1% resulted in a reduction of the provisions for pension and severance obligations and consequently to an actuarial gain of EUR 62.7 million (after deferred taxes).
In connection with the provisions for long-service bonus obligations, another adjustment will be needed due to the latest Austrian tax reform. According to the law that will come into effect on January 1, 2016 (which must already be taken into account at the present time), a social insurance employer contribution will be required for long-service bonuses, which must also be recognized in the provisions for long-service bonus obligations. This adjustment and the increase of the discount interest rate from 1.5% to 2.0% resulted in a reduction of the provisions for long-service bonus obligations amounting to EUR 1.6 million and income recognized in the income statement (after deferred taxes) amounting to EUR 1.2 million.
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