D. Acquisitions and other additions to the scope of consolidation

      The following entities were included in the Interim Consolidated Financial Statements for the first time in the first half of the business year 2020/21:

      Name of entity


      Equity interest in %


      Date of initial consolidation






      Full consolidation





      voestalpine Signaling China Co. Ltd.




      April 29, 2020

      VALIDA Railway Systems Investment Co. Ltd.




      May 8, 2020

      voestalpine Specialty Metals (Shanghai) Co. Ltd.




      June 1, 2020

      Ruzhou Zhengzhou Railway Sanjia Turnout Co., Ltd.




      October 1, 2020

      voestalpine Financial Services B.V.




      October 29, 2020

      voestalpine Böhler Welding Africa Pty. Ltd.




      November 16, 2020

      voestalpine Metal Engineering US LLC




      December 11, 2020

      voestalpine Nortrak-Damy US LLC




      December 11, 2020

      voestalpine Steel US LLC




      December 11, 2020

      voestalpine Metal Forming US Holding LLC




      February 1, 2021

      voestalpine Metal Engineering US Holding LLC




      February 1, 2021

      voestalpine Precision Strip II (USA) LLC




      February 12, 2021

      voestalpine Railway Systems Nortrak I LLC




      March 12, 2021

      voestalpine Bohler Welding USA I LLC




      March 15, 2021






      At-equity consolidation





      TransAnt GmbH




      December 1, 2020

      The additions of fully consolidated entities to the scope of consolidation include two acquisitions and 12 newly established entities.

      In accordance with IFRS 3, acquired companies are included in the Consolidated Financial Statements at the fair value carried forward of the acquired assets, liabilities, and contingent liabilities determined as of the acquisition date, taking into account depreciation, amortization, and impairment as appropriate. The carrying amount of the non-controlling interests is determined based on the fair values carried forward for the assets and liabilities acquired. As regards the first-time full consolidations pursuant to IFRS 3, note that due to time constraints and/or the fact that not all valuations have been completed, the following items shall be considered provisional: property, plant and equipment; intangible assets; as well as inventories and provisions—and consequently goodwill as well.

      The increase in majority interests is treated as a transaction between owners. The difference between the acquisition costs of additional shares and the prorated carrying amount of the non-controlling interests is recognized directly in equity. In the reporting period, EUR 0.0 million (2019/20: EUR 4.8 million) was paid for the acquisition of non-controlling interests, or provisions were formed for the payment thereof. Non-controlling interests in the amount of EUR 0.3 million (2019/20: EUR 1.1 million) were derecognized, and the remaining amount of EUR 0.3 million (2019/20: EUR 5.9 million) was recognized directly in equity.

      Put options granted to non-controlling shareholders in exchange for their shares in Group companies are recognized in the statement of financial position as liabilities stated at fair value. If, in individual cases, the risks and rewards associated with ownership of a non-controlling interest had already been transferred at the time the majority interest was acquired, the assumption is that 100% of the entity was acquired. If, however, the risks and rewards are not transferred, the non-controlling interests continue to be shown in equity. The liability is covered by a direct transfer from retained earnings with no effect on profit or loss (double credit approach). The subsequent fair value measurement is recognized through profit or loss.

      The liabilities for outstanding put options as of March 31, 2021, are EUR 8.6 million (March 31, 2020: EUR 9.5 million). The discounted cash flow method is applied for valuation purposes, taking the contractual maximum limits into account. The medium-term business plan and the discount rate, in particular, are some of the input factors in the discounted cash flow method.

      On October 1, 2020, voestalpine Railway Systems GmbH, Austria, acquired control of 70% of the equity interests in the Chinese entity, Ruzhou Zhengzhou Railway Sanjia Turnout Co., Ltd., via the previously founded entity, VALIDA Railway Systems Investment Co. Ltd., China. This acquisition was made so that voestalpine can expand its activities in the Chinese market through a second location.

      On November 16, 2020, voestalpine Böhler Welding Group GmbH, Germany, acquired an equity interest of 51% in the South African entity, voestalpine Böhler Welding Africa Pty. Ltd., which is a joint venture with Afrox Ltd., South Africa. This joint venture enables voestalpine Böhler Welding to expand its worldwide product range of stick electrodes for joining as well as its maintenance and repair services.

      These acquisitions have the following impact on the Consolidated Financial Statements:



      Recognized values




      Non-current assets



      Current assets



      Non-current liabilities



      Current liabilities



      Net assets



      Addition of non-controlling interests






      Acquisition costs



      Capital contribution from non-controlling interests



      Addition of non-controlling interests (parent)



      Acquisition costs (Group)



      Cash and cash equivalents acquired



      Capital contribution not yet paid



      Net cash outflow






      In millions of euros

      The above table contains goodwill of EUR 0.9 million, specifically, EUR 0.5 million from the transaction involving Ruzhou Zhengzhou Railway Sanjia Turnout Co., Ltd. and EUR 0.4 million from the share deal involving voestalpine Böhler Welding Africa Pty. Ltd. Both differences arise from the company’s earnings potential which, according to IFRS rules, may not be allocated to items that can be capitalized individually. The goodwill of Ruzhou Zhengzhou Railway Sanjia Turnout Co., Ltd. is allocated to the goodwill-carrying Railway Systems business segment, and the goodwill of voestalpine Böhler Welding Africa Pty. Ltd. to the goodwill-carrying Welding product segment. It is not expected that portions of the recognized goodwill are deductible for corporate tax purposes.

      Since their initial consolidation, the acquisitions have contributed revenue of EUR 12.6 million to consolidated revenue. Their share in the Group’s profit after tax for the same period was EUR 1.2 million. The reported consolidated revenue would have been EUR 19.3 million higher and the reported Group’s profit after tax would have been EUR 1.1 million higher if the acquisitions had been consolidated as of April 1, 2020.

      As part of the first-time full consolidation of Ruzhou Zhengzhou Railway Sanjia Turnout Co., Ltd., fair values for trade receivables of EUR 4.6 million (gross carrying amount: EUR 4.6 million) and for other receivables of EUR 5.1 million (gross carrying amount: EUR 5.1 million) were taken over. Receivables that are probably uncollectible are considered immaterial.

      Takeover or purchase of companies or of interests in companies.
      Cash flow
      • From investing activities: outflow/inflow of liquid assets from investments/disinvestments;
      • From operating activities: outflow/inflow of liquid assets not affected by investment, disinvestment, or financing activities.
      • From financing activities: outflow/inflow of liquid assets from capital expenditures and capital contributions.
      Assets made available to a corporation by the owners through deposits and/or contributions or from retained profits.
      IFRS (International Financial Reporting Standards)
      Accounting regulations developed to guarantee comparable accounting and disclosure.