19. Provisions

 

 

Balance as of 04/01/2019

 

Changes in the scope of consolidation

 

Net exchange differences

 

Use

 

Reversals

 

Transfers

 

Additions

 

Balance as of 03/31/2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current provisions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other personnel expenses

 

14.0

 

0.1

 

–0.1

 

–4.5

 

0.0

 

–0.1

 

3.4

 

12.8

Warranties and other risks

 

6.1

 

0.0

 

0.0

 

–0.4

 

–1.5

 

–0.7

 

0.5

 

4.0

Other non-current provisions

 

147.2

 

0.0

 

–5.1

 

–88.2

 

–25.3

 

–4.3

 

51.3

 

75.6

 

 

167.3

 

0.1

 

–5.2

 

–93.1

 

–26.8

 

–5.1

 

55.2

 

92.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current provisions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unused vacation entitlements

 

154.2

 

0.1

 

–2.2

 

–108.6

 

–0.1

 

0.0

 

93.3

 

136.7

Other personnel expenses

 

194.9

 

0.1

 

–1.5

 

–167.1

 

–5.2

 

0.1

 

136.6

 

157.9

Warranties and other risks

 

45.5

 

0.2

 

–0.3

 

–11.5

 

–6.0

 

1.6

 

37.1

 

66.6

Onerous contracts

 

37.5

 

0.0

 

0.0

 

–22.0

 

–8.8

 

0.0

 

48.7

 

55.4

Other current provisions

 

210.8

 

0.0

 

–0.3

 

–138.8

 

–7.1

 

3.4

 

162.3

 

230.3

 

 

642.9

 

0.4

 

–4.3

 

–448.0

 

–27.2

 

5.1

 

478.0

 

646.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

810.2

 

0.5

 

–9.5

 

–541.1

 

–54.0

 

0.0

 

533.2

 

739.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In millions of euros

The provisions for personnel expenses mainly include incentive payments and bonuses. Provisions for warranties and other risks as well as for onerous contracts concern current operating activities. The other provisions mainly consist of provisions for sales commission; 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 amount that would be required to settle these obligations at the reporting date. The statistical measure is the expected value. In turn, this is based on the probability of an event occurring in the light of past experience.

Provisions for onerous contracts are recognized when the unavoidable cost of meeting the given contractual obligations exceed the expected revenue. Before recognizing separate provisions for an onerous contract, an entity recognizes an impairment loss on the assets associated with the given contract.

The antitrust investigations of the German Federal Cartel Office (Bundeskartellamt) regarding railway superstructure material that were triggered in 2011 by an application under the Leniency Notice were completed against voestalpine in 2013. A total of EUR 14.9 million in fines were issued against voestalpine in this connection. Another application under the Leniency Notice by voestalpine triggered the Bundeskartellamt’s investigation against special steel companies; it was completed in July 2018 as far as voestalpine is concerned. As the principal witness, no fines were imposed on voestalpine. In connection with the proceedings that the Bundeskartellamt launched in September 2017 pursuant to a search warrant on suspicion of anti-competitive practices under German competition law in the heavy plate segment, voestalpine agreed in December 2019 to settle the matter by paying a fine of EUR 65.5 million. These proceedings, too, have thus been brought to an end.

To the extent relevant, voestalpine set up provisions as of the March 31, 2020, reporting date for any negative effects from these anti-trust investigations.

Increases in provisions totaling EUR 0.6 million (2018/19: EUR 0.6 million) are included in the reporting period due to both accrued interest and changes in the discount rate.


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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