10. Goodwill and other intangible assets

Goodwill

 

 

 

 

 

 

 

 

03/31/2018

 

03/31/2019

 

03/31/2020

 

 

 

 

 

 

 

Gross carrying amount

 

1,558.2

 

1,560.6

 

1,563.6

Impairment losses

 

–12.3

 

–12.3

 

–68.7

Carrying amount

 

1,545.9

 

1,548.3

 

1,494.9

 

 

 

 

 

 

 

In millions of euros

The following table shows the reconciliation of the carrying amounts of goodwill for the periods presented in the Consolidated Financial Statements as of March 31, 2020:

 

 

Goodwill

 

 

 

Carrying amount as of April 1, 2018

 

1,545.9

 

 

 

Additions

 

0.0

Disposals

 

0.0

Net exchange differences

 

2.4

Carrying amount as of March 31, 2019

 

1,548.3

 

 

 

Additions

 

2.6

Disposals

 

0.0

Impairment losses

 

–56.5

Net exchange differences

 

0.4

Carrying amount as of March 31, 2020

 

1,494.9

 

 

 

In millions of euros

Details on the impairment of goodwill are explained in Chapter 11. Impairment losses and reversal of impairment losses.

Other intangible assets

 

 

Brands

 

Other

 

Advance payments or payments in progress

 

Total

 

 

 

 

 

 

 

 

 

Gross carrying amount

 

227.6

 

1,349.3

 

34.9

 

1,611.8

Accumulated amortization and impairment

 

–36.6

 

–1,179.2

 

0.0

 

–1,215.8

Carrying amount as of April 1, 2018

 

191.0

 

170.1

 

34.9

 

396.0

 

 

 

 

 

 

 

 

 

Gross carrying amount

 

227.6

 

1,362.6

 

49.2

 

1,639.4

Accumulated amortization and impairment

 

–42.3

 

–1,202.0

 

0.0

 

–1,244.3

Carrying amount as of March 31, 2019

 

185.3

 

160.6

 

49.2

 

395.1

 

 

 

 

 

 

 

 

 

Gross carrying amount

 

227.6

 

1,437.3

 

3.3

 

1,668.2

Accumulated amortization and impairment

 

–48.0

 

–1,281.6

 

0.0

 

–1,329.6

Carrying amount as of March 31, 2020

 

179.6

 

155.7

 

3.3

 

338.6

 

 

 

 

 

 

 

 

 

In millions of euros

The “Brands” column contains brands with an indefinite useful life in the amount of EUR 170.6 million. It also includes a capital market funding advantage associated with the brand name Böhler-Uddeholm. The amortization period of the capital market funding advantage is ten years.

Intangible assets with an unlimited useful life

The following CGUs and groups of CGUs contain brands with an indefinite useful life:

 

 

2018/19

 

2019/20

 

 

 

 

 

High Performance Metals Division

 

155.4

 

155.4

 

 

 

 

 

Welding Consumables

 

12.6

 

12.6

Total Metal Engineering Division

 

12.6

 

12.6

 

 

 

 

 

Precision Strip

 

2.6

 

2.6

Total Metal Forming Division

 

2.6

 

2.6

 

 

 

 

 

voestalpine Group

 

170.6

 

170.6

 

 

 

 

 

In millions of euros

The period during which these trademarks are expected to generate cash flows is not subject to a foreseeable limit. Hence trademarks are not subject to wear and tear and are not amortized. No impairments have arisen.

The following table shows the reconciliation of the carrying amounts of the other intangible assets for the periods presented in the Consolidated Financial Statements as of March 31, 2020:

 

 

Brands

 

Other

 

Advance payments or payments in progress

 

Total

 

 

 

 

 

 

 

 

 

Carrying amount as of April 1, 2018

 

191.0

 

170.1

 

34.9

 

396.0

 

 

 

 

 

 

 

 

 

Changes in the scope of consolidation

 

0.0

 

0.9

 

0.0

 

0.9

Additions

 

0.0

 

13.8

 

17.0

 

30.8

Transfers

 

0.0

 

8.5

 

–2.5

 

6.0

Disposals

 

0.0

 

0.0

 

–0.2

 

–0.2

Amortization

 

–5.7

 

–41.4

 

0.0

 

–47.1

Impairment losses

 

0.0

 

0.0

 

0.0

 

0.0

Reversal of impairment losses

 

0.0

 

6.9

 

0.0

 

6.9

Net exchange differences

 

0.0

 

1.8

 

0.0

 

1.8

Carrying amount as of March 31, 2019

 

185.3

 

160.6

 

49.2

 

395.1

 

 

 

 

 

 

 

 

 

Changes in the scope of consolidation

 

0.0

 

0.9

 

0.0

 

0.9

Additions

 

0.0

 

19.2

 

3.6

 

22.8

Transfers

 

0.0

 

54.3

 

–49.5

 

4.8

Disposals

 

0.0

 

–1.2

 

0.0

 

–1.2

Amortization

 

–5.7

 

–49.1

 

0.0

 

–54.8

Impairment losses

 

0.0

 

–28.3

 

0.0

 

–28.3

Reversal of impairment losses

 

0.0

 

0.0

 

0.0

 

0.0

Net exchange differences

 

0.0

 

–0.7

 

0.0

 

–0.7

Carrying amount as of March 31, 2020

 

179.6

 

155.7

 

3.3

 

338.6

 

 

 

 

 

 

 

 

 

In millions of euros

The functional classifications—cost of sales, distribution costs, administrative expenses, and other operating expenses—may include amortization of intangible assets.

As of March 31, 2020, commitments for the acquisition of intangible assets were EUR 0.1 million (March 31, 2019: EUR 0.1 million). Additions to “Advance payments or payments in progress” contain EUR 0.0 million (March 31, 2019: EUR 13.8 million) in capitalized development costs for a software project intended to map cross-company business processes and business processes that have been harmonized across the Steel Division. The carrying amount in the other intangible assets as of March 31, 2020, is EUR 74.2 million (March 31, 2019: EUR 89.0 million), and the remaining useful life is five years.


About voestalpine

In its business segments, voestalpine is a globally leading steel and technology group with a unique combination of materials and processing expertise. voestalpine, which operates globally, has around 500 Group companies and locations in more than 50 countries on all five continents. It has been listed on the Vienna Stock Exchange since 1995. With its top-quality products and system solutions, it is a leading partner to the automotive and consumer goods industries as well as the aerospace and oil & gas industries, and is also the world market leader in railway systems, tool steel, and special sections. voestalpine is fully committed to the global climate goals and is working intensively to develop technologies which will allow it to decarbonize and reduce its CO2 emissions over the long term. In the business year 2019/20, the Group generated revenue of EUR 12.7 billion, with an operating result (EBITDA) of EUR 1.2 billion; it had about 49,000 employees worldwide.

Facts

50 Countries on all 5 continents
500 Group companies and locations
49,000 Employees worldwide

Earnings FY 2019/20

€ 12.7 Billion

Revenue

€ 1.2 Billion

EBITDA

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