Notes on financial instruments

      Categories of financial instruments

      Categories

       

      Financial assets measured at AC1

       

      Hedge accounting

       

      Financial assets measured at FVTPL

       

      Total

       

       

       

       

       

       

       

       

       

      Assets 03/31/2021

       

       

       

       

       

       

       

       

      Other financial assets, non-current

       

      2.1

       

       

      50.6

       

      52.7

      Trade and other receivables

       

      888.8

       

      18.3

       

      215.5

       

      1,122.6

      Other financial assets, current2

       

      84.2

       

       

      61.1

       

      145.3

      Cash and cash equivalents

       

      1,159.7

       

       

       

      1,159.7

      Carrying amount

       

      2,134.8

       

      18.3

       

      327.2

       

      2,480.3

       

       

       

       

       

       

       

       

       

      1
      The carrying amount of the financial assets measured at AC represents an adequate approximation of the fair value.

       

       

      2
      The “other financial assets, current” of EUR 145.3 million reported as of March 31, 2021, which were classified FVTPL, were adjusted by EUR 84.2 million.

       

       

      In millions of euros

      Categories

       

      Financial assets measured at AC1

       

      Hedge accounting

       

      Financial assets measured at FVTPL

       

      Total

       

       

       

       

       

       

       

       

       

      Assets 09/30/2021

       

       

       

       

       

       

       

       

      Other financial assets, non-current

       

      2.1

       

       

      50.9

       

      53.0

      Trade and other receivables

       

      960.3

       

      30.8

       

      241.7

       

      1,232.8

      Other financial assets, current

       

      344.1

       

       

      63.9

       

      408.0

      Cash and cash equivalents

       

      563.8

       

       

       

      563.8

      Carrying amount

       

      1,870.3

       

      30.8

       

      356.5

       

      2,257.6

       

       

       

       

       

       

       

       

       

      1
      The carrying amount of the financial assets measured at AC represents an adequate approximation of the fair value.

       

       

      In millions of euros

      Categories

       

      Financial liabilities measured at AC

       

      Hedge accounting

       

      Financial liabilities measured at FVTPL

       

      Total

       

       

      Carrying amount

       

      Fair value

       

      Carrying amount (= fair value)

       

      Carrying amount (= fair value)

       

      Carrying amount

       

      Fair value

       

       

       

       

       

       

       

       

       

       

       

       

       

      Liabilities 03/31/2021

       

       

       

       

       

       

       

       

       

       

       

       

      Financial liabilities, non-current

       

      2,846.2

       

      2,883.2

       

       

       

      2,846.2

       

      2,883.2

      Financial liabilities, current

       

      1,220.7

       

      1,225.1

       

       

       

      1,220.7

       

      1,225.1

      Trade and other payables1

       

      1,597.4

       

      1,597.4

       

      9.4

       

      8.2

       

      1,615.0

       

      1,615.0

      Trade payables from bills of exchange and trade payables from reverse factoring agreements

       

      782.1

       

      782.1

       

       

       

      782.1

       

      782.1

      Total

       

      6,446.4

       

      6,487.8

       

      9.4

       

      8.2

       

      6,464.0

       

      6,505.4

       

       

       

       

       

       

       

       

       

       

       

       

       

      1
      The carrying amount of the trade and other payables, the trade payables from bills of exchange, and the payables from reverse factoring agreements represents an adequate approximation of the fair value.

       

       

      In millions of euros

      Categories

       

      Financial liabilities measured at AC

       

      Hedge accounting

       

      Financial liabilities measured at FVTPL

       

      Total

       

       

      Carrying amount

       

      Fair value

       

      Carrying amount (= fair value)

       

      Carrying amount (= fair value)

       

      Carrying amount

       

      Fair value

       

       

       

       

       

       

       

       

       

       

       

       

       

      Liabilities 09/30/2021

       

       

       

       

       

       

       

       

       

       

       

       

      Financial liabilities, non-current

       

      2,724.9

       

      2,774.8

       

       

       

      2,724.9

       

      2,774.8

      Financial liabilities, current

       

      1,010.0

       

      1,010.1

       

       

       

      1,010.0

       

      1,010.1

      Trade and other payables1

       

      1,769.2

       

      1,769.2

       

      23.9

       

      9.3

       

      1,802.4

       

      1,802.4

      Trade payables from bills of exchange and trade payables from reverse factoring agreements

       

      981.6

       

      981.6

       

       

       

      981.6

       

      981.6

      Total

       

      6,485.7

       

      6,535.7

       

      23.9

       

      9.3

       

      6,518.9

       

      6,568.9

       

       

       

       

       

       

       

       

       

       

       

       

       

      1
      The carrying amount of the trade and other payables, the trade payables from bills of exchange, and the payables from reverse factoring agreements represents an adequate approximation of the fair value.

       

       

      In millions of euros

      The financial liabilities measured at amortized cost, excluding bonds issued, fall under Level 2. Valuation is performed according to the discounted cash flow method, whereby the input parameters for the calculation of the fair values are the foreign exchange rates, interest rates, and credit spreads observable on the market. Using the input parameters, the fair values are calculated by discounting estimated future cash flows at market interest rates.

      Bonds issued are measured using Level 1 inputs based on the quoted price as of the reporting date.

      The table below analyzes regular fair value measurements of financial assets and financial liabilities. These measurements are based on a fair value hierarchy that categorizes the inputs included in the valuation methods used to measure fair value into three levels. The three levels are defined as follows:

      Inputs

      Level 1

       

      Comprises quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

      Level 2

       

      Comprises inputs other than the quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.

      Level 3

       

      Comprises unobservable inputs for the asset or liability.

      Fair value hierarchy levels used for recurring fair value measurements

       

       

      Level 1

       

      Level 2

       

      Level 3

       

      Total

       

       

       

       

       

       

       

       

       

      03/31/2021

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      Financial assets

       

       

       

       

       

       

       

       

      Other financial assets, non-current

       

      14.2

       

       

      36.4

       

      50.6

      Receivables from derivatives – hedge accounting

       

       

      18.3

       

       

      18.3

      Trade and other receivables

       

       

      23.1

       

      192.4

       

      215.5

      Other financial assets, current

       

      61.1

       

       

       

      61.1

       

       

      75.3

       

      41.4

       

      228.8

       

      345.5

       

       

       

       

       

       

       

       

       

      Financial liabilities

       

       

       

       

       

       

       

       

      Liabilities from derivatives – hedge accounting

       

       

      9.4

       

       

      9.4

      Trade and other payables

       

       

      8.2

       

       

      8.2

       

       

      0.0

       

      17.6

       

      0.0

       

      17.6

       

       

       

       

       

       

       

       

       

      09/30/2021

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      Financial assets

       

       

       

       

       

       

       

       

      Other financial assets, non-current

       

      14.5

       

       

      36.4

       

      50.9

      Receivables from derivatives – hedge accounting

       

       

      30.8

       

       

      30.8

      Trade and other receivables

       

       

      21.4

       

      220.3

       

      241.7

      Other financial assets, current

       

      63.9

       

       

       

      63.9

       

       

      78.4

       

      52.2

       

      256.7

       

      387.3

       

       

       

       

       

       

       

       

       

      Financial liabilities

       

       

       

       

       

       

       

       

      Liabilities from derivatives – hedge accounting

       

       

      23.9

       

       

      23.9

      Trade and other payables

       

       

      9.3

       

       

      9.3

       

       

      0.0

       

      33.2

       

      0.0

       

      33.2

       

       

       

       

       

       

       

       

       

      In millions of euros

      The derivative transactions (Level 2) are measured using the discounted cash flow method by determining the value that would be realized if the hedging position were closed out (liquidation method). The observable currency exchange rates and raw materials prices as well as interest rates are the input for the calculation of fair values. Fair values are calculated based on the inputs by discounting expected future cash flows at market interest rates.

      The voestalpine Group recognizes reclassifications between different levels of the fair value hierarchy as of the end of the reporting period in which the change occurred. There were no reclassifications in the business year 2020/21, nor from April 1, 2021, through September 30, 2021.

      The table below presents the reconciliation of Level 3 financial assets measured at fair value between the opening balance and the closing balance, as follows:

      Level 3 – FVTPL – Other financial assets – non-current

       

       

      04/01 – 09/30/2020

       

      04/01 – 09/30/2021

       

       

       

       

       

      Opening balance

       

      36.4

       

      36.4

       

       

       

       

       

      Total of gains/losses recognized in the income statement:

       

       

       

       

      Finance costs/Finance income

       

      0.0

       

      0.0

      Closing balance

       

      36.4

       

      36.4

       

       

       

       

       

      In millions of euros

      Level 3 includes the equity investment in Energie AG Oberösterreich that is measured at fair value. The fair value of this entity can be reliably determined based on the valuation report that is prepared once a year for Energie AG Oberösterreich as a whole, taking into account all relevant information.

      Significant sensitivities in the determination of the fair values may result from changes in the under­lying market data of comparable entities and the input factors used to determine the net present value (particularly discount rates, non-current forecasts, plan data, etc.).

      Level 3 – FVTPL – trade receivables (sale business model)

       

       

      04/01 – 09/30/2020

       

      04/01 – 09/30/2021

       

       

       

       

       

      Opening balance

       

      111.7

       

      192.4

       

       

       

       

       

      Disposals

       

      –111.7

       

      –192.4

      Additions

       

      151.1

       

      220.3

      Closing balance

       

      151.1

       

      220.3

       

       

       

       

       

      In millions of euros

      The receivables in this portfolio are sold monthly on a rolling basis as part of the Group’s factoring programs. The measurement gains or losses allocable to this portfolio are of secondary significance.

      The credit risk associated with a particular debtor is the most important factor in the fair value determination of the portfolio entitled, “Trade and other receivables held for factoring.” Any increase/­decrease by 1% in the established default rates thus would change the fair value of this portfolio at most in the same amount; as a rule, however, the fair value change is disproportionately low, because credit insurance has been purchased for significant portions of the portfolio.