19. Provisions

       

       

      Balance as of 04/01/2020

       

      Changes in the scope of consoli­dation

       

      Net exchange differences

       

      Use

       

      Reversals

       

      Transfers

       

      Additions

       

      Balance as of 03/31/2021

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      Non-current provisions

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      Other personnel expenses

       

      12.7

       

      0.0

       

      0.0

       

      –4.2

       

      0.0

       

      0.3

       

      2.9

       

      11.7

      Warranties and other risks

       

      4.1

       

      0.0

       

      0.0

       

      –0.6

       

      –0.3

       

      0.8

       

      0.3

       

      4.3

      Other non-current provisions

       

      75.6

       

      0.0

       

      –2.9

       

      –3.9

       

      –4.8

       

      27.7

       

      11.6

       

      103.3

       

       

      92.4

       

      0.0

       

      –2.9

       

      –8.7

       

      –5.1

       

      28.8

       

      14.8

       

      119.3

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      Current provisions

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      Unused vacation entitlements

       

      136.7

       

      0.1

       

      0.3

       

      –86.7

       

      –0.2

       

      0.3

       

      87.0

       

      137.5

      Other personnel expenses

       

      157.9

       

      0.1

       

      –1.7

       

      –122.5

       

      –4.8

       

      1.8

       

      155.6

       

      186.4

      Warranties and other risks

       

      66.7

       

      0.0

       

      0.1

       

      –11.5

       

      –6.2

       

      –19.4

       

      40.4

       

      70.1

      Onerous contracts

       

      55.2

       

      0.0

       

      0.0

       

      –42.3

       

      –3.4

       

      1.0

       

      33.4

       

      43.9

      Other current provisions

       

      230.4

       

      –0.2

       

      –1.0

       

      –129.8

       

      –19.3

       

      –19.4

       

      202.0

       

      262.7

       

       

      646.9

       

      0.0

       

      –2.3

       

      –392.8

       

      –33.9

       

      –35.7

       

      518.4

       

      700.6

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      739.3

       

      0.0

       

      –5.2

       

      –401.5

       

      –39.0

       

      –6.9

       

      533.2

       

      819.9

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      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.

      As of March 31, 2021, the provisions for personnel expenses also include EUR 22.5 million for per­sonnel reduction programs.

      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 voestalpine triggered in 2011 by way of 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 have also thus been brought to an end.

      To the extent relevant, voestalpine set up provisions as of the March 31, 2021, reporting date for any negative effects from these anti-trust investigations.

      Increases in provisions totaling EUR 1.5 million (2019/20: EUR 0.6 million) are included in the reporting period due to both accrued interest and changes in the discount rate.