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19. Provisions

 

 

Balance as of 04/01/2017

 

Changes in the scope of Consolidated Financial Statements

 

Net exchange differences

 

Use

 

Reversals

 

Transfers

 

Additions

 

Balance as of 03/31/2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current provisions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other personnel expenses

 

24.4

 

0.0

 

–1.7

 

–4.0

 

–0.1

 

0.0

 

3.0

 

21.6

Warranties and other risks

 

14.6

 

0.0

 

–0.2

 

–2.6

 

–2.8

 

0.1

 

1.2

 

10.3

Other non-current provisions

 

40.4

 

0.0

 

–1.5

 

–5.4

 

–0.4

 

1.0

 

10.6

 

44.7

 

 

79.4

 

0.0

 

–3.4

 

–12.0

 

–3.3

 

1.1

 

14.8

 

76.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current provisions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unused vacation entitlements

 

135.1

 

0.0

 

–2.9

 

–80.0

 

–0.2

 

0.1

 

93.1

 

145.2

Other personnel expenses

 

186.3

 

0.0

 

–3.5

 

–152.7

 

–7.4

 

0.1

 

189.5

 

212.3

Warranties and other risks

 

53.3

 

0.0

 

–1.4

 

–11.4

 

–8.8

 

–0.2

 

17.9

 

49.4

Onerous contracts

 

54.7

 

0.0

 

–0.1

 

–46.1

 

–1.0

 

0.0

 

23.6

 

31.1

Other current provisions

 

155.6

 

0.3

 

–2.7

 

–77.7

 

–9.7

 

–1.1

 

112.5

 

177.2

 

 

585.0

 

0.3

 

–10.6

 

–367.9

 

–27.1

 

–1.1

 

436.6

 

615.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

664.4

 

0.3

 

–14.0

 

–379.9

 

–30.4

 

0.0

 

451.4

 

691.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In millions of euros

The provisions for personnel expenses mainly include bonuses. Provisions for warranties and other risks as well as onerous contracts apply to current operating activities. The other provisions mainly consist of provisions for commissions; litigation, legal, and consulting fees; and environmental protection obligations.

The amount recognized as a provision for warranties and other risks is calculated as the most reliable estimated value of the amount that would be required to settle these obligations at the reporting date. The statistical measure is the expected value, which is based on the probability of occurrence of an event according to past experience.

Provisions for onerous contracts are recognized when the earnings expected to be derived by the Group from contracts are lower than the unavoidable cost of meeting its obligations under these contracts. Before recognizing a separate provision for onerous contracts, the Group recognizes an impairment loss on the assets associated with such contracts.

The provisions recognized in the Annual Financial Statements 2016/17 in the amount of EUR 35.6 million for the anti-trust proceedings and associated actions and costs relating to railway superstructure material as well as for the closure of TSTG Schienen Technik GmbH & Co KG have been reduced to EUR 30.2 million due to the use of these provisions in the business year 2017/18.

Companies of the High Performance Metals Division of the voestalpine Group are affected by proceedings of the German Federal Cartel Office (Bundeskartellamt) that became known as of November 26, 2015, due to searches of the premises of voestalpine’s competitors. voestalpine is taking these proceedings very seriously, is cooperating with the authorities, and currently does not expect that significant fines will be imposed against voestalpine in these proceedings. No provisions were formed in this regard in the current reporting period.

In the course of the current investigations of the German Federal Cartel Office (Bundeskartellamt) against steel producers, a search was conducted in the offices of voestalpine in Linz, Austria, from September 12 to 14, 2017, for the German Federal Cartel Office. The search took place on suspicion of anti-competitive practices in the market for heavy plates. Austrian authorities took part in accordance with European legal requirements. voestalpine AG is taking these allegations very seriously and is cooperating with the authorities. No provisions were formed in this regard in the current reporting period.

Increases in provisions totaling EUR 0.7 million (2016/17: EUR 9.4 million) are included in the reporting period based on accrued interest and on changes in the discount rate.


About voestalpine

In its business segments, voestalpine is a globally leading technology and capital goods group with a unique combination of material and processing expertise. With its top-quality products and system solutions using steel and other metals, it is a leading partner to the automotive and consumer goods industries in Europe and to the aerospace, oil and gas industries worldwide. The voestalpine Group is also the world market leader in turnout technology, special rails, tool steel, and special sections.

Facts

50 Countries on all 5 continents
500 Group companies and locations
51,600 Employees worldwide

Earnings FY 2017/18

€ 13 Billion

Revenue

€ 2 Billion

EBITDA

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